Singapore monetary authority penalizes 9 banks, institutions for 2023 money laundering case

The Monetary Authority of Singapore penalised six banks and three other financial institutions a total of S$27.45 million ($21.5 million) on Friday in relation to the country's biggest ever money laundering scandal in 2023.

The case involved more than S$3 billion ($2.2 billion) in illicit assets seized after 10 foreigners were busted in a series of simultaneous raids in August 2023.

The total penalty is just shy of the S$29.1 million in financial penalties meted out to eight banks in a case involving Malaysia's 1MDB in 2017.

The banks involved — Credit Suisse, UOB, UBS, Citibank, Julius Baer and LGT Bank — were each penalised between S$1million and S$5.8 million.

Brokerage firm UOB Kay Hian, asset management firm Blue Ocean Invest and trust and fund services company Trident Trust Company Singapore were also penalised S$2.85 million, S$2.4 million and S$1.8 million respectively.

The penalties mark the conclusion of MAS's enforcement actions against financial institutions.

The 10 convicted money launderers were sentenced to jail terms of between 13 and 17 months in the nation's largest case of its kind. They were deported and barred from re-entering Singapore after completing their sentences.

The criminals held money gained from overseas scams and online gambling operations in bank accounts in Singapore, and converted some of their cash into real estate, cars, handbags and jewellery.

MAS said it has identified shortcomings in the financial institutions' customer risk assessments, their tracing of the sources of customers' wealth as well as their ability to monitor and follow up on suspicious transactions.

"The financial institutions have embarked on remediation of the deficiencies and MAS will monitor their progress closely," it said.

Four people were also issued prohibition orders preventing them from carrying out MAS-regulated activities.

In response to media queries, UOB said that it has implemented prompt remedial actions over the past two years and committed significant investments to enhance its internal risk management standards and capabilities further.

UBS, which agreed to take over Credit Suisse in March 2023, said that it acknowledged the findings and has cooperated fully with authorities to resolve the issue.

Blue Ocean Invest said that the company has fully cooperated with the authorities and has implemented measures to enhance internal policies and procedures.

A Trident Trust Company spokesperson also said it has cooperated with MAS's inspection and implemented a remediation plan to address breaches.

Citibank, UOB Kay Hian, Julius Baer and LGT Bank did not immediately respond to a request for comment.

In August last year, Singapore charged two ex-bankers from Citi and Julius Baer for forging loan and tax documents for the money launderers.

Singapore has also sought to make it easier for law enforcement to prosecute money laundering offences in the city-state.

In June 2024, the government identified Singapore's banking sector as posing the highest money laundering risk in the city-state.