In a major regulatory move, the Monetary Authority of Singapore (MAS) has taken decisive action against nine financial institutions (FIs) and several individuals over serious breaches of anti-money laundering (AML) requirements. These lapses were uncovered during extensive investigations following Singapore’s biggest money laundering case in August 2023, involving billions in illicit funds and dozens of luxury assets.
Nine Financial Institutions Penalised
MAS revealed it has imposed composition penalties totalling a hefty S$27.45 million across nine institutions, including major banks and licensed intermediaries, for failing to comply with AML and Countering the Financing of Terrorism (CFT) measures. The fines, which reflect the severity of each FI’s breaches and the weaknesses in their internal controls, were broken down as follows:
- Credit Suisse Singapore Branch (CSSB): S$5.8 million
- United Overseas Bank (UOB): S$5.6 million
- UBS AG Singapore: S$3 million
- Citibank Singapore entities (CNAS & CSL): S$2.6 million
- Bank Julius Baer Singapore: S$2.4 million
- LGT Bank Singapore: S$1 million
- UOB Kay Hian Private Limited: S$2.85 million
- Blue Ocean Invest Pte. Ltd.: S$2.4 million
- Trident Trust Company Singapore: S$1.8 million
Investigations by MAS between early 2023 and early 2025 found that while many FIs had AML policies in place, they frequently failed to implement them effectively. Weaknesses included poor risk assessments, inadequate checks on customers’ sources of wealth, and insufficient transaction monitoring.
Key Failings Identified
Among the most alarming issues were:
- Mis-rating of Money Laundering Risks: Some FIs failed to properly assess customer risk, which compromised their ability to apply effective controls to high-risk clients.
- Weak Checks on Source of Wealth: All nine institutions missed red flags in documents provided by suspicious customers, failing to corroborate claims of wealth or investigate discrepancies.
- Poor Transaction Monitoring: Eight FIs overlooked large or suspicious transactions that were inconsistent with customer profiles.
- Lack of Follow-up After Suspicious Transaction Reports (STRs): In two cases, FIs did not take timely or adequate action to mitigate risk after filing STRs.
CSSB’s fine was also linked to additional breaches dating back to 2017 involving accounts managed on behalf of certain US customers.
Senior Managers and Relationship Managers Disciplined
In a significant signal to the financial industry, MAS also announced prohibition orders (POs) and reprimands for senior executives and relationship managers (RMs) directly involved in the failings. Four individuals from Blue Ocean Invest, including its CEO and COO, received POs barring them from working in the financial sector for three to six years.
Another five senior figures at Trident Trust Company and UOB were reprimanded for oversight failures. Nine more RMs and supervisors received private reprimands.
MAS stressed these measures underscore the personal responsibility of senior management and front-line staff in ensuring rigorous compliance with AML/CFT rules.
MAS: Vigilance Critical as Singapore Faces Global Risks
MAS Deputy Managing Director Ho Hern Shin highlighted Singapore’s exposure to international money laundering risks, warning financial institutions and employees that consistent implementation of AML/CFT controls is non-negotiable. She said:
“Where there are serious failings by FIs and their employees, MAS will not hesitate to take firm action.”
MAS urged FIs to benchmark their policies against industry best practices, adopt robust risk-based controls, and ensure staff remain alert to suspicious activities, especially in high-risk client segments.
The enforcement action marks the conclusion of MAS’ sweeping probe into FIs connected to the 2023 money laundering scandal, which shook Singapore’s reputation as a financial hub.
High-CPM keywords inserted: Singapore AML breach, MAS enforcement, money laundering scandal, financial compliance Singapore, banking regulatory penalties.