Maldives' main bank Bank of Maldives (BML) for the first time has hit-back at criticism over its culpability in the largest corruption scandal in the history of the archipelago insisting that it had reported suspicious transactions linked to the scandal.
Maldives Media and PR Corporation (MMPRC) had mediated the leasing of over 59 different tourist hotels, resorts and yacht marinas out of which 53 had been leased through an agreement with the tourism ministry.
The official audit report into the scandal, had revealed that over USD79 million had been embezzled through the state tourism promotion company.
The funds received by MMPRC was distributed through a private company called SOF Private Limited with strong links to the now jailed former vice president Ahmed Adheeb Abdul Ghafoor.
In an internal memo to its staff, BML insisted that it had reported its suspicions and disclosed accounting information of SOF with the police, auditor's office and the Anti-Corruption Commission (ACC).
BML said it was required by law to report all transactions conducted by customers through the Bank which exceed the value of MVR200,000, which it said was done in a "compliant manner."
"As you can gather from all this, and unlike as suggested in some social media reports, we fully and robustly complied with our legal and regulatory obligations as prescribed under the law," the memo detailed.
"We also commissioned an investigation by our Chief Internal Auditor who concluded firmly
that the Bank had acted within the law and that there was no indication of employee collusion of any kind."
The bank had also defended its decision to terminate and later have a staff arrested for leaking banking documents related to SOF.
Gasim Abdul Kareem, a former assistant manager at the Bank of Maldives’ Faafu Atoll Nilandhoo Branch was arrested in February 2016 was sentenced to eight months and 12 days in prison after he was found guilty of illegally disclosing private information.
Gasim had been freed in November 2016 on sentence credit as he had been remanded longer than his prison sentence.
BML said Gasim had illegally downloaded some SOF's transactions and made them public prompting his immediate suspension "on the grounds of suspected breach of the law and his contractual obligations."
"Following further investigation, he was subsequently terminated from employment and given that he was found to have broken the law, the Bank fulfilled its obligation to report the matter to Maldives Police Service," the memo detailed.
According to the memo, Gasim in his statement to the bank had explained that he had acted as he had done in order to establish the accuracy of what was being said in public relating to the MMPRC corruption scandal.
"However, he [Gasim] had never reported any suspected activity within the Bank nor had he taken any steps to clarify any misconceptions he had using the formal systems and mechanisms that were in place within the Bank," BML said.
"Very importantly, Mr Gasim was not aware of the actions taken by the Bank, the reporting we had done and our full compliance with our legal requirements. Regrettably he was not
aware that the information he had unlawfully accessed and disseminated had in fact already been reported to the relevant authorities."
The memo also reminded its staff that they were bound by legal and contractual obligations to observe strict confidentiality of customer and account information.
The bank had also urged its staff to use its “whistle blow” reporting system that was in place to raise any concerns or grievances regarding suspicious banking activity.
"If any employee becomes concerned about a possible misconduct or an unlawful activity being carried out within the Bank, a structured and thorough – anonymous if preferred – “whistle blow” system is in place to formally report such matters to the highest level of the Bank, right up to the Board of Directors."
