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This is still going in Standard Chartered as I recently overheard 2 guys discussing the sales of customer list at a cafe.
Ex-bank staff jailed for sharing client list
05 Jun 2010
Source: The Straits Times
He is the first to be prosecuted for breach of bank secrecy laws
A FORMER personal financial consultant with Standard Chartered Bank yesterday became the first person prosecuted here for violating banking secrecy laws.
Lucas Lin Han Tian, 28, whose job gave him access to confidential details of the bank’s high-net-worth clients, tried to sell their names and contact details to businesses like spa chains and insurance firms.
The sale of mailing lists of potential clients, also called “leads”, is prevalent around the world and is largely responsible for unsolicited direct mailers and spam mail.
For passing on this kind of confidential information belonging to Standard Chartered Bank to his alleged accomplice Mahesalingam Kanasalingam in October 2008, Lin, who pleaded guilty, was jailed for a month.
The case against Mahesalingam, 28, then a customer service manager at United Overseas Bank (UOB), is pending.
Lin was also fined $10,000 for selling the personal and financial particulars of UOB clients, which he is believed to have obtained from Mahesalingam.
Court documents say that Mahesalingam also got Lin to set up Dynamic Events in August 2008, purportedly to organise events.
Lin wrote to spas, beauty salons and insurance firms, using Dynamic Events’ letterhead, offering to sell them the names and contact details of affluent individuals at $3 per head.
The price was negotiable.
A recipient of the letter grew suspicious upon noticing that the pre-paid envelope which came with the letter featured UOB’s return address, which had been blacked out with a marker pen.
The bank was informed.
Arrangements were then made for the recipient, who knew a vice-president at UOB, to buy 250 leads from Lin for $500 in November 2008; the names were found to be an exact match to UOB’s customer database.
A raid on Lin’s home uncovered confidential information belonging to Standard Chartered Bank; he also admitted giving Mahesalingam copies of applications by individuals who opened accounts with the bank between 2006 and 2007.
Asking the court to impose a deterrent sentence, Deputy Public Prosecutor Hon Yi said: “A flagrant breach of bank controls over confidential information, especially by bank officers – the very persons who are expected to uphold these rules – would have a direct impact on Singapore’s reputation in the international banking sector.”
Lin’s lawyer Chua Eng Hui argued against this on the grounds that his client played only a peripheral role, and that it was Mahesalingam who was the key mover.
The financial gain derived from the offence was also “minuscule”, the lawyer added.
Lin, who stood with his eyes closed for much of the hearing, could have been jailed for up to three years and fined $125,000 for each of the two offences.
