SINGAPORE, Nov 11 — Former senior private banker Yak Yew Chee was sentenced to 18 weeks’ jail and fined S$24,000 (RM74,500) today for forgery and for failing to disclose information on suspicious transactions — the first here to be sentenced in relation to the probe into fund flows related to 1Malaysia Development Berhad (1MDB) through Singapore.
The 58-year-old’s offences were related to the accounts of Malaysian tycoon Low Taek Jho, also known as Jho Low, who has been suspected of siphoning billions of dollars from the Malaysian state fund.
Yak, previously a managing director with BSI Singapore, pleaded guilty today to two counts of forgery in November 2012 and February 2014, where he forged reference letters sent to a Swiss bank and a wealth management firm.
The court heard that on Feb 18, 2014, Yak had forged a letter to one Olivier Blanchet of BNP Paribas, Switzerland, which testified that Low’s family have been “clients of good standing”, had “substantial” assets with BSI in Singapore and Switzerland as well as BSI’s compliance with the legislative frameworks in both countries.
A similar letter was also forged on Nov 20, 2012 to one Stefan Liniger, chief executive officer of Rothschild Trust AG, Switzerland.
Yak also pleaded guilty to two counts of not reporting suspicious transactions involving sums of US$110 million and US$153 million, when he knew these transactions could constitute criminal conduct.
On one occasion in Nov 2, 2012, a sum of US$153 million was transferred from Good Star Limited to Abu Dhabi Kuwait-Malaysia Investment Corporation, a company reportedly fronted by Low.
The court heard that Yak had reasonable grounds to suspect that this “directly represented proceeds of an act that may constitute criminal conduct”, but did not report this to a suspicious transaction reporting officer.
Another three charges were taken into consideration for sentencing.
In their sentencing submissions, prosecutors noted that Yak knew the forged letters would mislead and deceive the intended recipients. There was also a breach of trust, given the high position he held at the bank.
His actions also, to some extent, brought disrepute to Singapore’s financial system, added prosecutors.
In mitigation, Yak’s lawyer Lee Teck Leng said his client is deeply remorseful and understands his mistake in putting the bank’s revenue and personal bonuses ahead of the need to uphold the integrity of Singapore’s financial system.
For forgery, Yak could have been jailed up to four years or fined or both. For failing to disclose information on these suspicious transactions, Yak could have been fined up to S$20,000.
Other parties involved in the probe include former wealth planner Yeo Jiawei, 33, who is currently on trial for perverting the course of justice by allegedly interfering with witnesses central to investigations. He also faces another seven charges of cheating, forgery and money-laundering, which will be dealt with in April next year.
Another Singaporean, Kelvin Ang, has been charged with corruptly giving gratification to a research analyst between 2013 and 2014, to expedite preparation of a favourable valuation report by his firm.
Yvonne Seah, also formerly a senior private banker at BSI, has been charged for helping Yak and Yeo forge reference letters, and for failing to report the same suspicious transactions to the authorities, despite knowing they could be criminal. — TODAY
