MAS’ 1MDB investigation uncovers “control failings” at DBS, UBS, Standard Chartered

It found lapses in both officers, processes.

The plot thickens for the Monetary Authority of Singapore’s (MAS) 1MDB investigation, as DBS, Standard Chartered Bank, and UBS have now become embroiled in the scandal around Malaysia’s wealth fund.

In a joint statement with the local Attorney-General’s Chambers and Commercial Affairs Department, MAS announced that preliminary findings indicate that there were instances of control failings in all three banks.

MAS also reports that it found weaknesses in the processes for accepting clients and monitoring transactions in some cases.

The deficiencies observed in DBS, SCB, and UBS related to lapses in specific processes as well as individual officers, MAS reveals.

“The lapses were serious in their own right, and will be met by firm regulatory actions against the banks. However, the MAS’ inspections did not reveal pervasive control weaknesses or staff misconduct within these banks, unlike in the case of BSI Bank,” MAS stated.

MAS refers to BSI Bank’s “serious breaches of AML requirements and poor management oversight, and gross misconduct by some of the bank’s staff,” which led to MAS’ decision to withdraw BSI Bank’s status as a merchant bank.