Indian origin banker issued prohibition order linked to 1MDB scandal of former Malaysian PM Najib Razak

The former deputy CEO and head of private banking of BSI Bank Limited's Singapore branch, was issued the prohibition and warned to report the suspicious transaction

An Indian-origin banker has been issued a 10-year prohibition order and a 24-month conditional warning for his failure to report a suspicious transaction involving the jailed Malaysian Prime Minister Najib Razak’s infamous company 1Malaysia Development Berhad (1MDB).

Raj Sriram, the former deputy CEO and head of private banking of BSI Bank Limited's Singapore branch (BSIS), was issued the prohibition and warned on Monday to report the suspicious transaction, the Monetary Authority of Singapore (MAS) and the Singapore Police Force (SPF) said in a statement.

The prohibition order, which took effect on Monday, was issued by MAS, while the conditional warning was given by the SPF's Commercial Affairs Department (CAD), reported Channel News Asia.

The prohibition order bans Mr. Sriram from "providing any financial advisory service or taking part in the management of, acting as a director of, or becoming a substantial shareholder of any financial advisory firm under the Financial Advisers Act", said the joint statement.

CAD investigated Mr. Sriram in relation to his role in BSIS' business dealings and relationships with the subsidiaries of 1MDB and Aabar Investments PJS Limited, the purported subsidiary of the Abu Dhabi-based Aabar Investments PJS said.

SPF and MAS said the department found that there were "reasonable grounds for BSIS to file suspicious transaction reports in respect of 1MDB-related transactions" as required under a MAS notice for merchant banks on the prevention of money laundering and countering the financing of terrorism.

Due to Mr. Sriram’s neglect, BSIS did not file the reports, the statement said.