Singapore money laundering: UBS, UOB, Citi among banks hit with US$22 million in penalties
Capital market services firms and a trust company also faced hefty penalties for their inadequate anti-money laundering measures
In August 2023, Singapore’s authorities began their high-profile arrests of 10 people of Chinese origin who were found to be linked to an online gambling syndicate known as the Fujian gang. They used their ill-gotten gains to buy lavish items including high-end properties, luxury cars, jewellery and designer goods. Other individuals involved in the scheme remain at large.
As of December 2024, assets amounting to around S$2.79 billion had been surrendered to the state, the home affairs ministry said earlier this year.
The latest penalties by the MAS come second to S$29.1 million penalties issued against financial institutions with operations in Singapore following the 1Malaysia Development Bhd (1MDB) scandal. Among them, BSI Bank faced the largest penalty at S$13.3 million and lost its bank license here for serious breaches in anti-money-laundering requirements.
Sinyee Koh, the founder of Integrity Consulting, said that the failings were lapses in implementation of rules rather than deliberate facilitation and assistance of the money launderers, which was why there was no direct proportionality between the money laundering ring’s proceeds of crime and the penalties faced by the relevant financial institutions.