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Signage for 1Malaysia Development Bhd. (1MDB) is displayed at the site of the Tun Razak Exchange (TRX) project in Kuala Lumpur, Malaysia.
Investigations found that Leissner issued an unauthorized reference letter to a financial institution based in Luxembourg in June 2015 using the letterhead of Goldman Sachs (Asia). The letter, sent without the bank’s knowledge, said Goldman Sachs had conducted due diligence on Malaysian tycoon Low Taek Jho and had not detected any money laundering concerns.
Low has since been identified as a “key person of interest” in allegations of illegally moving 1MDB funds — a case currently investigated by jurisdictions globally including the U.S., Switzerland, Singapore and the Seychelles.
“MAS will not tolerate conduct by any finance professional that threatens to undermine trust and confidence in Singapore’s financial system. MAS will not hesitate to bar such individuals from carrying out regulated activities in the financial industry,” said Ong Chong Tee, the central bank’s deputy managing director for financial supervision, in the statement.
“It is imperative that industry professionals and representatives of financial institutions are fit and proper persons. They must be worthy of the trust that people place in them and their institutions.”
MAS began investigations into 1MDB-related breaches in March 2015. It shut down two Swiss-based private banks, BSI and Falcon, fined several other financial institutions, including Standard Chartered and UBS, and it hauled a number of individuals to court.
In its statement on Monday, the central bank also said it issued lifetime prohibition orders on former branch manager of Falcon Bank, Jens Fred Sturzenegger, and former BSI Bank representative Yak Yew Chee. Another ex-BSI banker, Yvonne Seah, received a 15-year ban.
