THE Monetary Authority of Singapore (MAS) has issued a lifetime prohibition order (PO) against Kevin Michael Swampillai, a former representative and head of the Wealth Management Services Department of BSI Bank Ltd, Singapore Branch (BSIS).

The PO was issued at the conclusion of an investigation conducted by the MAS and takes effect from yesterday, the central bank said in a statement early this morning.

From 2012 to 2013, MAS said Swampillai and his then subordinate, Yeo Jiawei, had assisted the Malaysian state-owned strategic development company, 1Malaysia Development Bhd (1MDB), to restructure several of its joint-venture interests.

In the course of doing so, Swampillai and Yeo had channelled a portion of the fund management fees, or “secret profits”, to an entity beneficially owned by Swampillai, without BSIS’ knowledge and authorisation.

In total, Swampillai received about US$5 million in secret profits at the expense of, and without the knowledge of, BSIS, it said.

MAS said Swampillai had also deliberately made misrepresentations to 1MDB’s auditors, KPMG Malaysia, in an attempt to improperly influence the outcome of an audit carried out by them on 1MDB’s fiduciary fund investments.

The central bank said he misrepresented that the assets held by PetroSaudi Oil Services Ltd – one of 1MDB’s investments – were liquid in nature and mostly cash, despite having knowledge that PetroSaudi’s assets comprised two drill ships.

“Swampillai’s actions have given MAS reason to believe that he will not carry out regulated activities honestly,” it said.

Due to the severity of his misconduct, MAS has permanently prohibited him from performing any regulated activity under the Securities and Futures Act (SFA) or providing any financial advisory service under the Financial Advisers Act (FAA).

He is also permanently prohibited from taking part in the management, acting as a director, or becoming a substantial shareholder of any capital market and financial advisory services firm under the SFA and FAA, said MAS. – Bernama, October 23, 2020.