MAS penalises SAFS S$2.5M for serious AML/CFT failures

SINGAPORE: Swiss-Asia Financial Services (SAFS) has been penalised by the Monetary Authority of Singapore (MAS) due to serious breaches in anti-money laundering and counter-terrorism financing (AML/CFT) regulations.

As a consequence, MAS penalised SAFS S$2.5 million.

The regulatory action comes as MAS identified significant lapses in SAFS’ adherence to AML/CFT requirements between September 2015 and October 2018.

Despite experiencing substantial business growth during this period, SAFS failed to implement adequate controls to mitigate AML/CFT risks. The breaches included:

• Failure to factor relevant risk elements in its enterprise-wide risk assessment.
• Failure to conduct customer due diligence (CDD) measures before initiating business relations.
• Failure to scrutinise third-party transactions in customers’ accounts.
• Insufficient identification and assessment of customers posing higher money laundering or terrorism financing (ML/TF) risks.
• Failure to report suspicious transactions despite indications of potential involvement in financial crimes.
• Lack of internal audits for assessing the efficiency of AML/CFT controls.

MAS has reprimanded SAFS’ CEO, Olivier Pascal Mivelaz, and its COO, Steve Knabl, for failing to comply with MAS’ AML/CFT requirements.

Mr Mivelaz and Mr Knabl were specifically reprimanded for approving inadequate risk assessments and for failing to conduct regular internal audits to evaluate AML/CFT controls.

In response to MAS’ action, SAFS has initiated remedial measures to address the identified deficiencies and enhance its AML/CFT framework.

Ms Loo Siew Yee, assistant managing director at MAS, noted the importance of robust AML/CFT measures for financial institutions, particularly those providing wealth management services.

She said:

“The boards and senior management of FIs are expected to put in place adequate AML/CFT controls, actively oversee the implementation of the controls, and ensure that compliance and internal audit functions are working effectively and keeping pace with the FI’s business growth.” /TISG

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