Singapore: Singapore has seized “a large number” of bank accounts in connection with possible money-laundering carried out in the country, the Monetary Authority of Singapore and Commercial Affairs Department said in a joint emailed statement in response to queries on 1Malaysia Development Bhd.
“In connection with these investigations, we have sought and are continuing to seek information from several financial institutions, are interviewing various individuals, and have seized a large number of bank accounts,” the agencies said in the statement on Monday. Singapore has been “actively investigating” possible money-laundering and other offences since mid-2015, according to the statement.
Neighbouring Malaysia’s government investment fund, whose advisory board is headed by Prime Minister Najeeb Razak, has been the subject of overlapping investigations in the country, as well as overseas jurisdictions including Switzerland and Hong Kong amid allegations of financial irregularities. Swiss prosecutors said in a January 29 statement that they are seeking legal assistance from the Southeast Asian nation after a probe that they conducted into 1MDB revealed “serious indications” that about $4 billion may have been misappropriated.
Singapore is cooperating closely with relevant authorities including those in Malaysia, Switzerland and the US, the agencies said in the statement.
“We have responded to all foreign requests for information and have requested for information from relevant counterparts to aid in our investigations,” according to the statement. “Singapore does not tolerate the use of its financial system as a refuge or conduit for illicit funds.”
While an initial Malaysian auditor general’s report in July on 1MDB didn’t reveal any suspicious activity, the nation’s central bank had made requests for the attorney general to initiate criminal proceedings against the debt-ridden company. The Malaysian attorney general’s office dismissed the central bank’s requests, which alleged that 1MDB breached the Exchange Control Act.
Separately, Malaysia’s attorney-general closed the door on a graft investigation into Najeeb last month, clearing him of wrongdoing over a “personal contribution” of $681 million from Saudi Arabia’s royal family, and funds from a company linked to 1MDB that appeared in his personal bank accounts.
Najeeb has maintained the funds were not used for private benefit, with $620 million later returned to the Saudi donors, although there hasn’t been a clear explanation as to what the rest was spent on or where that money is now. Both the premier and 1MDB have consistently denied any wrongdoing.
