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1MDB private banker leaves quietly

Tom Burroughes, Editor, London, 15 March 2016

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A banker who was working with part of scandal-hit 1MDB, the Malaysian state fund, is no longer at his firm.

The saga surrounding alleged corruption at the state-run 1MDB fund of Malaysia has taken a new turn now that it has been revealed that a senior executive at BSI, the private bank, left the Switzerland-headquartered firm last month.

Yak Yew Chee had been a relationship manager for 1MDB Global Investments, part of 1Malaysia Development Berhad. The organisation has been the subject of investigations. It has been claimed that Prime Minister Najib Razak has benefited from the fund. He strenuously denies such allegations.

Authorities in Singapore and Switzerland have investigated accounts connected to 1MDB. According to Bloomberg, Singapore authorities froze Yak's accounts in September and questioned him as part of their 1MDB inquiry. Yak, a senior vice president at BSI, was until recently paid a monthly salary of about S$82,000 ($59,000), according to court papers.

The news service quoted a BSI spokesperson as saying that the banker was no longer employed at BSI. BSI did not confirm this with us by press time.

Yak's lawyer, Roderick Martin, declined to comment, Bloomberg reported. Yak was placed on leave between May and September in 2015 while BSI conducted investigations, according to court papers.

BSI has been through a tumultuous period. Last year, it was bought by Brazil-headquartered BTG Pactual, only for it to be sold a few weeks ago by BTG Pactual to Switzerland’s EFG International. The Brazilian lender was engulfed in a corruption scandal fairly recently and sold BSI to raise some capital.

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