Former Falcon Private Bank Manager Jailed, Fined Amid 1MDB Scandal

Josh O'Neill

12 January 2017

A former branch manager of about his ties to tycoon Low Taek Jho, who is accused by authorities worldwide of being at the centre of alleged money laundering linked to Malaysia's state-owned fund. It has been suggested that hundreds of millions of dollars have been transferred from accounts at Falcon Private Bank to Low and his associates.

Last year, Falcon Private Bank and BSI were both forced to shut shop in Singapore amid the city-state's biggest crackdown on money laundering connected to the 1MDB fund. Falcon Private Bank was accused of “a persistent and severe lack of understanding” of the MAS's anti-money laundering regulations and was consequently fined $3 million.

In recent developments, the Malaysian government was reported to be making preparations to close the scandal-hit fund, which has seen multiple indictments and jail sentences handed to former affiliated bankers. The Malaysian prime minister, Najib Razak – who was accused of funnelling $1 billion through his bank account - has repeatedly denied any wrongdoing and said his country will cooperate with international investigations into the fund, the current debt load of which is estimated at $4.8 billion.