Report: Swiss bank in 1MDB saga 'investigating its employees'

The Swiss bank embroiled in global probes into 1MDB, BSI SA, is said to be investigating employees and their dealings related to the Malaysian state investment fund, Bloomberg reported.

Citing sources, Bloomberg reported that one of the employees being investigated in Singapore, is the manager of the first banker to be charged in the city-state amid investigations stemming from 1MDB.

A senior officer of a wealth management services has been suspended pending investigation, the sources said.

It was however stressed that the man has not been accused of any wrongdoing by Singapore authorities.

BSI’s ongoing inquiry reportedly comes as authorities across the globe examine claims that 1MDB was used to funnel money to politically-connected individuals.

According to the Public Accounts Committee (PAC) report on 1MDB, the Swiss bank had introduced 1MDB to a Cayman Islands fund which received a US$2.32 billion investment.

That investment and transactions related to it is the subject of criminal probes, including those conducted in Singapore.

The Monetary Authority of Singapore has since questioned about 40 banks, including two of Australia’s biggest banks, in its investigations of related funds.

First charge

Sources further told Bloomberg that BSI has kept the Monetary Authority of Singapore informed of the progress of its inquiry.

Yeo Jiawei, a former BSI wealth planner, became the first banker to be charged on April 22 amid investigations into the Malaysian fund.

Yeo was said to have proposed investment products to 1MDB while at the bank.

The latest BSI employee under investigation is said to be one of two men mentioned in one of the obstruction-of-justice charges against Yeo.

Yeo, 33, was reportedly accused of asking the employee to falsely inform the police that sums transferred to an entity beneficially owned by Yeo was another man’s investments.

Prosecutors in Singapore have described Yeo as having a key role in moving “staggering” amounts of money.

Earlier this month, Yeo was slapped with three additional charges for movement of funds from accounts linked to 1MDB.

Prime Minister Najib Abdul Razak has so far denied all wrongdoings in allegations raised against 1MDB.

The 1MDB's board of directors, however have collectively resigned following findings of the parliamentary PAC report. -Mkini