The Monetary Authority of Singapore (MAS) has increased the ban against Tim Leissner to a lifetime Prohibition Order (PO) for his role in the stricken Malaysian sovereign wealth fund 1MDB.
This follows Leissner’s admission to criminal charges brought against him by the United States Department of Justice (US DOJ).
The Malaysian general attorney recently said criminal charges have been filed against subsidiaries of Goldman Sachs investment bank and key employees for their involvement 1MDB.
On 13 March 2017, MAS had issued a 10-year PO against Leissner, a former director of Goldman Sachs (Singapore), to prohibit him from “performing any regulated activity under the Securities and Futures Act (SFA), and taking part, directly or indirectly in the management of any capital markets services firm in Singapore”.
This PO was imposed after Leissner was found to have “issued an unauthorised reference letter on behalf of Goldman Sachs (Asia) to a financial institution based in Luxembourg where he had made false statements without the firm’s knowledge”.
Prohibition order
MAS has decided to vary the PO against him under section 101C of the SFA, by:
– Extending the duration of the PO to a lifetime prohibition; and
– Expanding the scope of the PO to also prohibit him from acting as a director of or becoming a substantial shareholder or a capital markets services licensee or exempt person under the SFA. This is in addition to the prohibition from performing any regulated activity under the SFA, and taking part, directly or indirectly, in the management of any capital markets services firm in Singapore that was stipulated in the original PO.
Department of Justice
On 1 November 2018, the US DOJ charged Leissner for “conspiracy to commit money laundering”, and “violate the US Foreign Corrupt Practice Act”.
Leissner has pleaded guilty to these charges, and admitted to participating in a conspiracy to “obtain and retain business from 1MDB for Goldman Sachs through the promise and payment of bribes and kickbacks to government officials in Abu Dhabi and Malaysia, and by embezzling funds from 1MDB for himself and others”, and “launder these bribes, kickbacks and funds through financial systems in the US and elsewhere”.
The MAS said the US DOJ’s charges and Leissner’s guilty plea have “provided further evidence of Leissner’s involvement in funds flows related to 1MDB”, which were previously not available to MAS.
MAS investigation
Since the commencement of investigations into 1MDB-related funds flows in 2015, MAS has been investigating the conduct and involvement of the relevant individuals, including Leissner.
The 10-year PO issued against Leissner in March 2017 was based on the limited information available to MAS at that time.
During the investigation, MAS was unable to interview Leissner, as he was not in Singapore and could not be compelled to travel to Singapore to assist in investigations.
