Singapore Fines 9 Banks in $3B Money Laundering Scandal

The Monetary Authority of Singapore (MAS) has imposed S$27.5 million (US$21.5 million) in financial penalties on 9 financial institutions. These institutions include major global banks like UBS group AG and Citigroup Inc., for breaches of anti-money laundering (AML) regulations. 

This sweeping action follows Singapore’s attempts to restore its image as a tightly regulated financial hub after authorities uncovered a sprawling S$3 billion money laundering operation in August 2023. Assets seized in the case include cash, luxury real estate, and cryptocurrencies.

This enforcement action marks the conclusion of a two-year supervisory review following the largest money laundering scandal in Singapore’s history. As per the reports , Credit Suisse’s Singapore branch received the highest fine at S$5.8 million, with UBS and Citi’s local units also penalized for what MAS describes as poor or inconsistent implementation of AML controls.  

The operation resulted in the conviction of ten people of Chinese descent, commonly known as the Fujian gang, besides charges being leveled against former bankers in 2024 in relation to the scandal. 

Besides, they imposed financial fines; four of the involved individuals were imposed with a prohibition order of three to six years by MAS. The institutions involved are said to be correcting the situation, and MAS is keen to follow the situation. 

Among the punished were United Overseas Bank Ltd. (UOB), the third-largest lending institution in Singapore, and asset manager Blue Ocean. Both organizations cited that they have already taken corrective measures to remedy the ascertained deficiency in compliance.  

This is the biggest regulatory action since the shutdown of the local office of BSI SA in 2016 due to its participation in the 1MDB scandal in Malaysia, which demonstrated the increased attention of the MAS to the financial integrity and stiffening of the defenses against illicit financial flows.