MAS bans ex-BSI Bank rep over $6.79m ‘secret profits' from 1MDB

Swampillai also made deliberate misrepresentations to 1MDB’s auditors.

The Monetary Authority of Singapore (MAS) has issued lifetime prohibition orders against Kevin Michael Swampillai, former representative and head of the wealth management services department of BSI Bank Singapore (BSI).

The orders were issued after an investigation conducted by the MAS and took effect on 22 October, permanently barring Swampillai from doing any regulated activity in regards to securities dealing and financial advisory.

From 2012 to 2013, Swampillai and his then-subordinate Yeo Jiawei assisted 1Malaysia Development Berhad (1MDB) in restructuring its joint venture interests and funnelled about $6.79m (US$5) of the fund management fees to an entity beneficially owned by Swampillai, without BSI’s knowledge and authorisation.

Swampillai also deliberately made misrepresentations to 1MDB’s auditors, KPMG Malaysia, to try to improperly influence the outcome of an audit carried out on 1MDB’s fiduciary fund investments, the MAS said.

He misrepresented that the assets possessed by PetroSaudi Oil Services Limited (PSOSL), one of 1MDB's investments, were liquid in nature and mostly cash, even though he knew that the assets comprised two drillships.