Singapore heavily penalizes nine financial institutions for money laundering

The Monetary Authority of Singapore (MAS) has fined nine financial institutions SGD27.45 million ($21.55 million) for breaches related to the 2023 money laundering case involving more than SGD3 billion in assets.

This is considered the second largest cumulative penalty imposed by MAS for breaches related to anti-money laundering and countering the financing of terrorism, after the 1Malaysia Development Berhad (1MDB) case in 2017.

According to the MAS announcement on July 4, Credit Suisse received the highest composition penalty of SGD5.8 million. The bank was acquired by fellow Swiss bank UBS in 2023.

UOB, UBS, UOB Kay Hian, and Citibank received the next highest penalties.

Swiss bank Julius Baer, asset management firm Blue Ocean Invest, financial services firm Trident Trust Company, and Liechtenstein’s LGT Bank were also penalized.

MAS said it found shortcomings in the areas of customer risk assessment, establishing and corroborating source of wealth of customers who posed a higher risk of money laundering, transaction monitoring, and post-suspicious transaction report follow-up.

The authority noted the institutions have begun addressing these shortcomings, and that it will keep a close watch on this process.

It added action has also been taken against 18 individuals involved in managing relationships with suspects in the case.

Investigations into the transnational case date back to 2021 and culminated in islandwide police raids in August 2023. Ten foreign nationals were arrested. All have been convicted and were deported after serving their sentences.

In the 1MDB case, MAS imposed SGD29.1 million in penalties on eight banks between 2016 and 2017, and also shut two of the banks.