Singapore's central bank has revoked Apical Asset Management’s capital markets services licence for breaching anti-money laundering and terrorism financing rules.
The Monetary Authority of Singapore (MAS) says Apical committed "serious breaches" of the rules and it uncovered “severe deficiencies” from 2013 to 2018.
It says the firm lacked basic policies and procedures on the rules, exposing it to the risk of receiving and/or laundering proceeds of crime.
"This risk was heightened in view of the complex ownership structures, comprising multiple layers and investment entities, used by some of Apical’s customers," MAS says in a statement on July 28.
The central bank reprimanded Yeh Yin Yee and Bernard Kan Cheok Yin, Apical’s only directors, for failing to discharge their duties and functions to ensure compliance with the rules. Mr. Yeh is the firm’s chief executive officer.
MAS warned that it will not hesitate to take action against financial institutions whose policies and controls "clearly fail" to address money laundering and terrorism financing risks.