1MDB engaged Goldman Sachs to arrange the issue of three bonds between 2012 and 2013. In doing so, says MAS, Tim Leissner, a former director of Goldman Sachs (Singapore) Pte (GS S’pore) made "false statements on behalf of Goldman Sachs (Asia) L.L.C., without the latter’s knowledge or consent." MAS says it is to issue a Prohibition Order against him.

MAS said in a statement

"The inspection revealed significant lapses in the bank’s customer due diligence measures and controls for ongoing monitoring, which resulted in numerous breaches of MAS’ AML regulations. The control lapses stemmed from inadequacies in policies and procedures, insufficient independent oversight of front office staff, and a lack of awareness of money laundering risks among some bank staff.

While the regulatory breaches were serious, MAS’ inspection did not find pervasive control weaknesses or wilful misconduct at SCB. MAS notes that the bank has proactively taken measures to address the weaknesses identified and strengthen its controls. MAS has instructed SCB’s management to take disciplinary action against those officers who failed to perform their duties effectively. "

In relation to Coutts, MAS says

MAS’ supervisory examination of Coutts revealed breaches of AML requirements in relation to customer due diligence measures for politically exposed persons (PEPs). The relationships for these PEP customer accounts were established between 2003 and 2009. The failure to exercise the necessary enhanced due diligence on these accounts was the result of actions or omissions of certain officers who have since left the bank. These officers include Mr Yak Yew Chee and Ms Yvonne Seah, who had left Coutts to join BSI Bank Limited in late 2009.

Coutts International was sold by Royal Bank of Scotland to Union Bancaire Privee in March 2015 and is in the process of winding down its Singapore operations.

Readers will recall that MAS closed the Singapore operations of BSI as a result of its serious failures in relation to 1MDB.

IN relation to Goldman Sachs and Tim Leissner, MAS says

The proposed Order will prohibit Mr Leissner for a period of 10 years from: (i) performing any regulated activity under the Securities and Futures Act; or (ii) taking part, directly or indirectly, in the management of any capital market services firm in Singapore.

Mr Leissner moved to Goldman Sachs (Asia) L.L.C. in Hong Kong in November 2011. But he maintained his representative status with GS S’pore till his resignation from Goldman Sachs in February 2016, and was therefore subject to MAS’ requirements to being fit and proper to carry out regulated activities.

Mr Leissner was found to have issued an unauthorised reference letter to a financial institution based in Luxembourg in June 2015, using the letterhead of Goldman Sachs (Asia) L.L.C. The letter stated that Goldman Sachs had conducted due diligence on Mr Low Taek Jho and his family, and had not detected any money laundering concerns with respect to Mr Low or his family. These statements were untrue and were made by Mr Leissner without Goldman Sachs’ knowledge or consent.

Mr Leissner managed the client relationship with 1MDB for all its three bond issues from 2012 to 2013. A team comprising Goldman Sachs staff mainly from Hong Kong, but also from Singapore, Malaysia and the United Arab Emirates, arranged these bond issues, and they were fully underwritten by London-based Goldman Sachs International. MAS has engaged and will continue to work with foreign regulatory authorities on examining Goldman Sachs’ role in the 1MDB bond transactions.