In an Employment Update last year, we reported on the criminal proceedings that were brought against 7 former employees of Citibank in January 2008.

The individuals had worked in Citibank’s private banking division until mid-2006 when a number of them left the bank to join a competitor, UBS. It was alleged that in the months leading up to their departure, the individuals accessed Citibank's computers without authority and then printed out certain information and sent data to their personal e-mail addresses. A total of 1,223 charges were brought against the former employees, relating to alleged unauthorised access to computer data at the Bank and alleged disclosure of customer information, and destruction of evidence.

Two of the employees involved have now been fined for their actions. One has been acquitted. Proceedings against the 4 remaining employees, each former relationship managers with Citibank, are pending.

The first employee to be fined is a former Vice-President in the bank, who pleaded guilty to 21 charges under the Computer Misuse Act and one charge of destroying evidence under the Penal Code . The court imposed a total penalty $173,000 in respect of the charges. According to media reports, the court heard in the course of the proceedings that the employee had already paid $180,000 to the bank to settle the related civil claim.

The second employee to be fined was the personal assistant to the Vice-President. She had acted on the Vice-President’s instructions in compiling and keeping Citibank customer information in the months leading up to their departure. She subsequently burnt a number of papers that she had taken. In the court proceedings, she admitted to 6 charges, and was fined a total of $40,000.

The cases are significant as they are the first of their kind in Singapore. It is clear that the court has not taken lightly the conduct engaged in, given the significant penalties imposed, though it chose not to sentence either individual to jail.

The cases have drawn widespread interest given the propensity for movement of personnel between employers in the banking industry, and the severe stance that has been taken by the regulators and the courts to the conduct engaged in. It may give some comfort to employers to know that they not only have civil remedies available to them in these circumstances, but may also seek the involvement of the police and/or other relevant regulatory bodies in protecting their confidential information.

Written by George Cooper, Practice Leader, Workplace Law & Advisory -- Asia, Freehills.

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