Shaming banks better than fines in 1MDB scandal, says S’pore

Malaysia may have slapped financial institutions involved in the 1MDB scandal with the ‘highest’ administrative fines in the country’s history, but our neighbour down south believes in a different approach.

In dealing with the 1MDB scandal, the Monetary Authority of Singapore (MAS) said shame has a greater effect than fines.

MAS managing director Ravi Menon said huge fines would only hurt shareholders instead of the upper management and those responsible.

“And that to me is one of the serious failings of the current regime globally. That people continue to do wrong things because they’re not being held personally liable and responsible,” Menon was quoted as saying by the Straits Times.

The daily then cited him as saying that the shame of being named in a MAS announcement for wrongdoing was a stronger deterrent that would change behaviour…

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