MAS Slaps penalties on Standard Chartered Bank and Coutts for money laundering breaches related to Malaysia's scandal-tainted 1MDB

Singapore central bank slaps penalties on StanChart, Coutts in 1MDB-related probe

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

The penalties - of S$5.2 million ($3.65 million)and S$2.4 million, respectively - were the latest punitive measures taken by the central bank in its crackdown on money laundering, having ordered the closure earlier this year of the local units of Swiss banks BSI and Falcon.

The inspection at Standard Chartered "revealed significant lapses in the bank’s customer due diligence measures and controls for ongoing monitoring," the Monetary Authority of Singapore said.

While the 28 breaches were "serious", the central bank did not find "wilful misconduct."

Standard Chartered said in a statement it is taking action to strengthen controls and surveillance systems.

"We regret that 1MDB-related transactions passed through Standard Chartered Bank Singapore accounts from 2010 to early 2013," the statement said.

"We reported the suspicious transactions, both before and at the time we exited the accounts in early 2013, and have been fully cooperating with the authorities investigating this matter."