Singapore's central bank fined Credit Suisse Group AG and United Overseas Bank Ltd. a total of S$1.6 million for breaching anti-money laundering rules in transactions related to Malaysia's troubled 1Malaysia Development Bhd., or 1MDB.

The Monetary Authority of Singapore said May 30 it completed its two-year review of banks involved in 1MDB-related transactions and imposed penalties on Credit Suisse and United Overseas Bank. It also issued prohibition orders against three individuals and plans to impose the same regulatory action on three others.

The MAS fined United Overseas Bank S$900,000 and Credit Suisse S$700,000 after it found several breaches of anti-money laundering requirements and control lapses at the two banks. The lapses include weaknesses in conducting due diligence on customers and inadequate scrutiny of customers' transactions and activities.

The MAS had previously fined DBS Group Holdings Ltd. S$1 million and UBS Group AG S$1.3 million for lapses in their anti-money laundering controls in connection with 1MDB transactions. The Malaysian state fund is the subject of money laundering investigations in several countries, including Singapore and Switzerland. As part of that investigation, Singapore had shut down the local units of BSI Bank and Falcon Private Bank Ltd. due to lapses in their anti-money laundering controls.

As of May 29, US$1 was equivalent to S$1.39.