The Monetary Authority of Singapore (MAS) has issued prohibition orders (POs) against two former bank employees for fraud and dishonest conduct.
Both cases are unrelated.
Unauthorised internet bank transfers
Former Relationship Manager of United Overseas Bank Limited (UOB) Tan Swee Thiam Timothy had made unauthorised internet bank transfers amounting to around S$263,500 from a customer’s UOB account to his personal bank account.
This took place between March 2015 and January 2016.
The sum of money was "in order to pay for his living expenses", the MAS press release stated.
Tan has been convicted of criminal breach of trust and sentenced to 30 months' imprisonment.
For a period of nine years, he is also prohibited from performing any regulated activity under the Securities and Futures Act (SFA), and from providing any financial advisory service under the Financial Advisers Act (FAA).
Unauthorised forward foreign exchange (FX) trades
The second individual, Lu Chor Sheng, was a former Treasury Advisor of Oversea-Chinese Banking Corporation Limited (OCBC).
Between Jan. 2011 and June 2013, Lu had used the OCBC accounts of a friend to place unauthorised forward foreign exchange (FX) trades with off-market rates in OCBC’s system, so that he could buy lower and sell higher than prevailing market rates.
Hee placed additional unauthorised trades in his customers’ accounts as counterparties to the trades placed in his friend’s accounts.
He also instigated his friend to impersonate his customers to place unauthorised forward FX orders with OCBC,
in order to close off unauthorised FX trades that he had placed in those customers’ accounts.
Lu made a profit of about S$1.09 million from this, according to the media release.
When the unauthorised trades were discovered by OCBC, the bank closed out the outstanding contracts in the relevant customers' accounts and suffered a total loss of S$3.09 million.
Lu was convicted of abetment of cheating, unauthorised modification of the contents of OCBC’s system under the Computer Misuse Act (CMA) and offences under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act.
He was sentenced to 100 months’ imprisonment.
He is also prohibited for a period of 17 years from performing any regulated activity under the Securities and Futures Act (SFA), and from providing any financial advisory service under the Financial Advisers Act (FAA).
Top photo via Capitaland.