BNPP relied on Singapore Financial Reporting Standard 39 as the basis of its rebuttal to Mr Riehl’s expert opinion.
BNPP said concealment or deferment would be impossible “with fair valuation of ALL derivative financial instruments through the profit-and-loss account as required by by FRS39”.
BNPP said this is further evidenced by assurances made by Board of Directors in 2006’s audited financial statements on Mr Wee’s forex transactions.
BNPP said it was not able to fully appraise its client’s forex positions as it was dealing with 11 other banks.
On a hindsight, similar to APB’s case, a bank with significant dealings with a company, should seek periodic face-to-face report and review with a panel of at least 2 or more its senior management staff.