Former Falcon Private Bank Manager Faces 16 Charges Over Connection To 1MDB

Josh O'Neill

6 January 2017

Singaporean authorities have charged a former branch manager of in connection with Malaysia's state-owned investment fund, the fifth person to be indicted in the city-state's money laundering probe into 1MDB.

Jens Sturzenegger faces a total of 16 charges including failing to report that $1.27 billion of inflows into two bank accounts were suspicious, according to media reports that cited court filings earlier this week. He intends to plead guilty, his lawyer Tan Hee Joek reportedly said in court.

The investment fund 1MDB is currently the subject of money laundering investigations in at least six countries, including Switzerland, Singapore and the US. Last year, BSI and Falcon Private Bank were both shut down by Singapore regulators amid its biggest crackdown on alleged money laundering connected to the fund.

So far, four others have faced charges and jail sentences over their involvement in the 1MDB scandal.

Earlier this week, Yeo Jiawei – a former BSI private banker who was handed a 30-month prison sentence, the longest to date – was reported to be planning an appeal of his conviction. The 34-year-old – whose former colleagues Yak Yew Chee and Yvonne Seah were last year sentenced to imprisonment – was first arrested in March 2016 in connection with Singapore's largest money laundering probe linked to the 1MDB scandal. Among many revelations that came out during testimony at his trial was one that Jiawei had allegedly made $23.9 million in the space of 15 months.

A separate trial, where Jiawei faces seven other charges including money laundering and cheating, is expected to begin in April.

This publication will continue to follow the 1MDB case and will update news coverage of charges and convictions accordingly.