Southeast Asia Information Port (www.dnyxxg.com) – The Monetary Authority of Singapore (MAS) recently fined nine financial institutions a total of S$27.45 million (approximately US$21.55 million) for violations related to the largest transnational money laundering case in Singapore's history. This is the second largest fine issued by the MAS in the area of anti-money laundering and counter-terrorism financing (AML/CFT) since the 2017 1MDB corruption scandal in Malaysia.
According to a notification released by the MAS on July 4, the highest-financed institution was Credit Suisse, acquired by UBS in 2023, with a fine of S$5.8 million. Other penalized institutions include United Overseas Bank (UOB), UBS, UOB Kay Hian, and Citibank. In addition, Julius Baer Bank of Switzerland, asset management company Blue Ocean Invest, financial services company Trident Trust Company, and Liechtenstein's LGT Bank were also penalized.
The MAS pointed out that these institutions had four major deficiencies: inadequate customer risk assessment; failure to effectively identify and verify the source of assets for high-risk customers; inadequate monitoring of suspicious transactions flagged by the system; and failure to properly follow up on reports of suspicious transactions from customers.
The MAS stated that although most financial institutions had established AML/CFT-related policies and internal control systems, violations occurred due to poor implementation or inadequate enforcement. The relevant institutions have initiated corrective measures, and the MAS will continue to monitor the progress.
The report also disclosed that the MAS has taken disciplinary action against 18 individuals who had business dealings with suspicious customers, including imposing professional bans of 3 to 6 years. During the ban period, these individuals are prohibited from holding management positions or engaging in financial services-related work in financial institutions, and some have also received warnings.
It is understood that the investigation into this largest money laundering case in Singapore's history began in 2021, involving as much as S$3 billion. In August 2023, Singapore police conducted a large-scale raid, arresting 10 foreign suspects. All have been convicted and deported after serving their sentences.
It is worth noting that in handling the 1MDB-related cases between 2016 and 2017, the MAS issued fines totaling S$29.1 million to eight banks and ordered two of them to cease operations. (End)
