Brazen Sky’s RM940m unit funds managed by fund manager

1mdb-bsi

KUALA LUMPUR: 1Malaysia Development Board’s (1MDB) subsidiary Brazen Sky Limited’s RM940 million unit funds are being managed by a fund manager, the Finance Ministry said today.

The board of directors of Brazen Sky have reported that there is no change in status in the value of investment, the ministry said in a written reply to Tony Pua (DAP-PJ Utara).

The lawmaker questioned the value of the investment and whether there were any new banks acting as “custodian” of the RM940 million units owned by Brazen Sky Limited.

Pua pointed out that the units were managed by BSI Bank which had their banking licence suspended in Singapore.

“The function of the manager is different from a custodian bank which acts as a mediator.”

The board of Brazen Sky confirmed that an international licensed bank has been given the mandate to act as a custodian bank to take over the role of BSI Bank in Singapore,” the ministry said in the reply.

It was reported in May that Singapore had suspended operations of BSI in the city-state after Switzerland began criminal proceedings against the bank in relation to 1MDB.

The Monetary Authority of Singapore had withdrawn BSI Bank Limited’s licence for breaches of money laundering rules and imposed S$13.3 million in financial penalties for 41 breaches, including its failure to conduct due diligence on high-risk accounts and monitor suspicious customer transactions.

Singapore had also referred six senior BSI executives to the public prosecutor, including the Swiss bank’s former chief executive officer in the city state and his deputy.