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Singapore central bank imposes penalties on Standard Chartered, Coutts in 1MDB-related probe

The Monetary Authority of Singapore has also served notice of its intention to issue a prohibition order against Tim Leissner, a former director and representative of Goldman Sachs Singapore. Photograph: (Reuters)

WION New Delhi, Delhi, India Dec 02, 2016, 01.28 AM (IST)

Singapore's central bank said on Friday it imposed penalties on the local units of Standard Chartered Bank and Coutts for money laundering breaches related to Malaysia's scandal-tainted 1Malaysia Development Berhard (1MDB) fund.

The penalties are S$5.2 million ($3.65 million) and S$2.4 million, respectively.

The Monetary Authority of Singapore has also served notice of its intention to issue a prohibition order against Tim Leissner, a former director and representative of Goldman Sachs Singapore.

The proposed order will prohibit Leissner for a period of 10 years from performing any regulated activity under the Securities Future Act, or taking part, directly or indirectly, in the management of any capital market services firm in Singapore. Leissner had been the Southeast Asia chairman of Goldman Sachs, and according to a Bloomberg report a "star banker". 

Last year, Malaysia's Prime Minister, Najib Tun Razak, was accused of channelling at least $681 million from 1MDB, a government-run strategic development company, into his personal band account.

Amid the breaking of the 1MDB scandal, Leissner, who Bloomberg reports had helped Goldman Sachs raise $6.5 billion for the state fund he oversaw, left amid questions surrounding the fund, his work on an Indonesian mining deal and also an allegedly inaccurate reference letter. 

Singapore's central bank said it was nearing the end of its 1MDB-related investigations and will provide a final update early next year.

(WION with agencies)

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