MAS Fines Credit Suisse, UOB, UBS, Citi and Others for AML Breaches

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Singapore’s financial regulator has fined a handful of financial institutions in the latest development of the historic multi-billion-dollar money laundering scandal that broke in 2023.

The Monetary Authority of Singapore (MAS) has fined nine financial institutions a total of S$27.45 million ($21.54 million) for anti-money laundering (AML) breaches related to the S$3 billion scandal that broke in August 2023, which saw the arrest and conviction of 10 foreigners.

The banks penalized include Credit Suisse (S$5.8 million), UOB (S$5.6 million), UBS (S$3 million), Citi (S$2.6 million), Julius Baer (S$2.4 million) and LGT (S$1 million), according to a statement. The regulator also fined capital market service providers UOB Kay Hian (S$2.85 million) and Blue Ocean Invest (S$2.4 million), as well as trust firm Trident Trust Company (S$1.8 million).

Shortcomings Discovered

MAS said that the breaches found during supervisory examinations were related to «poor or inconsistent implementation» of various AML and CFT (countering the financing of terrorism) policies and controls.

They include misratings of customers’ money laundering risks and failed detection or inadequate follow-up on matters like source of wealth and suspicious transactions.

Prohibition Orders, Reprimands

Four current and former executives from Blue Ocean Invest – Tsao Chung-Yi, Wong Xuan Ling, Hsia Lun Wei and Deng Xixi – were issued industry prohibition orders ranging from three to six years.

Three Trident Trust executives (Sean Andrew Coughlan, Tan Ho Kiat and Kek Yen Leng), two UOB executives (Ang Sze Hee and Tan Sheng Rong) received reprimands for various failures. Another nine relationship managers (RM) and RM supervisors were privately reprimanded for more limited lapses.

«The vigilance of our financial institutions and their employees is critical in mitigating such risks. MAS will work closely with financial institutions to promote more consistent implementation of AML/CFT measures. Where there are serious failings by FIs and their employees, MAS will not hesitate to take firm action,» said Ho Hern Shin, deputy managing director (financial supervision), MAS.