Singapore may act against ANZ and AMBank ,rather than UBS ,Falcon and PM Najib

by Ganesh Sahathevan


It has been previously reported that Singapore, UK and US regulators could impose fines and
other sanctions against Malaysia's AMBank, as a means of punishing Malaysia's leadership for the
consequences of the 1 MDB scandal (see story below).

This writer is now aware that  this option is  being  seriously considered ,and that in the process Singapore's MAS in particular may impose fines and sanctions against ANZ as well as AMBank ANZ has significant branch and wholesale banking operations in Singapore, but in the scheme of things, is  probably less important to Singapore's national interest compared to Falcon ,with its Middle East and petrodollar connections  and UBS, in which the Singapore Government has a significant stake. These include the investment by the Government of Singapore Investment Corporation , which in 2007  invested some S$ 14 billion in UBS .The utlra-secret GIC suffered very significant losses on that investment during the GFC, and remains a major shareholder.
The GIC reports only to the Prime Minister, Lee Hsien Loong.
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Sanctions against AmBank- How Swiss ,UK and US regulators can punish Malaysia's leadership (and ANZ and AUSTRAC) with one simple move 

by Ganesh Sahathevan


Switzerland's Financial Market Supervisory Authority FINMA made little if any attempt to hide its disgust  at the manner in which funds from Malaysia's 1 MDB were funneled via BSI AG.

It also made clear it had little time for the Malaysian story that the country and its leaders are especially favored by billion dollar gift bearing  Saudi kings and princes.

To quote FINMA:

• In one case involving a deposit of 20 million US dollars, for example, the bank was happy to accept the client's explanation that the funds involved were a "gift". In another case, an account was credited with more than 98 million US dollars without any effort to clarify its commercial background.

The magnitude of the scandal should now be obvious to even the most intellectually challenged Malaysian or Australian politician and bank regulator, all of whom ought to be contemplating what might happen next.Sanctions ,fines, penalties and jail terms for all involved seem highly likely.There may be political dimensions given that Prime Minister Najib is himself a central figure in the scandal. While sanctions against him may be difficult, sanctions against his bankers and freezing of his assets held outside Malaysia would be  a relatively simple matter.

In fact, the Monetary Authority Of Singapore may have done so already.

Najib's banker , the ANZ managed AMBank is at the center of  the web of transactions that have so infuriated even the Swiss and the Singaporeans but being only his banker, is exposed even if he is immune. A hefty fine, and withdrawal of correspondence facilities with US banks, plus  a prohibition on any dealing in US dollars should not be discounted. 

Such sanctions would have a  significant  negative impact on  the value of the listed AMBank, and that will probably have a flow-on effect on the value of other banks in Malaysia, the Malaysian stock market and the Malaysian Ringgit. ANZ is also likely to suffer in the process, even if Australian regulators maintain their Sargent Schultz defense with regards the 1 MDB matter.

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