SINGAPORE: The Monetary Authority of Singapore ( MAS ) has fined Swiss- Asia Financial Services S$ 2.5 million ( US$ 1.8 million ) for multiple breaches of requirements to safeguard against money laundering and terrorism financing.
The bank’s chief executive officer and chief operating officer have even received reprimands for failing to follow these instructions.  ,
In a press release on Tuesday ( May 7 ), MAS reported that the wealth and portfolio management company’s business significantly increased between September 2015 and October 2018.
However, the company’s control actions across a wide range of locations did not keep pace with its progress, exposing it to the risk of financial crime.
Some breaches were uncovered during MAS ‘ examination.
In its enterprise-wide risk assessment, these included failing to take into account certain important risk factors relating to the company’s clients and business pursuits.
Swiss-Asia Financial Services also failed to establish business relationships with its customers before using due diligence methods.  ,
Before consumer due diligence steps were finished, SAFS’ practice was to build business relationships with customers, according to MAS.
Even though the financial institution did not fully understand the customers ‘ needs, the organization also failed to examine various third-party transactions in their records.
Another errors include failing to identify a number of customers as having higher risk of money laundering or financing terrorism, despite red flags, which led to the failure to implement enhanced customer due diligence measures.
Swiss- Asia Financial Services failed to adequately identify the customers ‘ sources of wealth or funds and their valuable owners in the eyes of other customers the business had identified as being more vulnerable.  ,
Some of these customers with higher risk did not require the company’s top management’s approval to build or maintain business relations.
Even though there was ample evidence to do so, it also failed to report suspicious transactions involving many customers, and it did not conduct an internal audit to assess the company’s ability to combat terrorism and counteract its compliance with regulatory requirements.
Olivier Pascal Mivelaz, CEO of Swiss-Asia Financial Services, and Steve Knabl, COO, received reprimands for discharging their respective responsibilities and responsibilities in their respective agencies to ensure compliance with MAS standards.  ,
” In certain, they had approved the unsatisfactory enterprise- wide threat assessment. In light of the company’s major business growth during that time, they also failed to maintain regular internal audits were conducted over a four-year period to assess the effectiveness of SAFS’ anti-money laundering and countering the financing of terrorism controls, according to MAS.  ,
The business has taken the necessary corrective steps to correct the MAS findings.
According to Ms. Loo Siew Yee, MAS assistant managing director for plan, obligations, and economic violence, “financial organizations providing wealth management services to high net worth individuals may take comparable measures to reduce heightened risks of money laundering and violence funding.”
Monetary institution boards and older management are expected to implement effective measures to combat money laundering and stop terrorism financing, constantly monitor their implementation, and ensure that internal audit and compliance functions are operating efficiently and expanding their businesses.