SINGAPORE – Singapore’s central bank has fined nine prominent financial institutions, including global giants Citibank and UBS, over lapses linked to the city-state’s largest-ever money laundering scandal involving nearly £1.9 billion in illicit funds.
The Monetary Authority of Singapore (MAS) announced on Friday that it had concluded its investigation into the banks’ dealings with a group of Chinese-born individuals, now convicted, who exploited Singapore’s financial system to launder proceeds from international scams and illegal gambling. The high-profile scandal has shaken Singapore’s reputation as a leading global financial hub.
Ten foreign nationals were sentenced to jail in 2023 after authorities uncovered their elaborate scheme. The group had laundered billions through local banks, purchasing luxury properties, cars, jewellery, cryptocurrencies, and designer goods—all of which were later seized by law enforcement.
Following their arrests, MAS launched an in-depth probe into the financial institutions that had served the group. The regulator found multiple anti-money laundering (AML) failures, ranging from poor client risk assessments to neglecting obvious red flags in client transactions.
“These breaches stemmed from weak or inconsistent implementation of anti-money laundering controls,” MAS said in a statement. It cited specific failures such as overlooking unusually large or irregular transactions that were inconsistent with customer profiles.
Penalties Across the Sector
The total fines amount to S$27.45 million, equivalent to approximately £15.9 million, with the largest penalties imposed on:
- Credit Suisse (Singapore branch) – £3.36 million
- United Overseas Bank (UOB) – £3.25 million
- UBS AG (Singapore branch) – £1.74 million
- Citibank NA Singapore & Citibank Singapore Ltd – £1.51 million
- Bank Julius Baer (Singapore branch) – £1.39 million
Three additional unnamed financial institutions were also penalised.
In response, UOB said it “acknowledges and accepts MAS’ findings” and confirmed that it has taken steps over the past two years to address the identified shortcomings. UBS said it would “continue to work closely with regulators,” while Citi affirmed its commitment to “the highest standards of governance and controls.”
Bank Julius Baer stated it had taken “concrete steps to strengthen our processes and anti-money laundering framework.”
Further Enforcement Actions
In addition to the monetary penalties, MAS has also issued industry bans ranging from three to six years against four individuals. Five more were formally reprimanded for their roles in the compliance lapses.
The sweeping enforcement underscores Singapore’s resolve to maintain its integrity as a global financial centre amid increasing international scrutiny on illicit financial flows.
