Singapore – In one of its most sweeping regulatory crackdowns in recent years, Singapore’s central bank has imposed fines totaling S$27.5 million (approximately US$20 million or Rp350 billion) on nine financial institutions, including global banking giants UBS and Citigroup, for lapses related to the country’s largest money laundering scandal.
The Monetary Authority of Singapore (MAS) announced the sanctions on Friday, underscoring the city-state’s renewed commitment to safeguarding its reputation as a premier global financial hub. Among the institutions fined, Credit Suisse’s Singapore branch received the highest penalty at S$5.8 million, while the local arms of UBS Group AG and Citigroup Inc. also faced significant penalties for failing to adhere to anti-money laundering (AML) controls.
This regulatory action marks the most substantial enforcement by MAS since it shuttered the local unit of Swiss bank BSI in 2016 over its involvement in the 1MDB affair. The move comes in response to a multi-billion dollar laundering case that has shaken Singapore’s confidence in its financial defenses.
Global Attention on Compliance Failures
The scandal, which began unfolding publicly in August 2023, revealed weaknesses in Singapore’s financial ecosystem. Investigations led to the seizure of over S$3 billion in assets including luxury properties, cryptocurrencies, and cash. Ten individuals of Chinese descent—referred to in local media as the “Fujian gang”—were convicted, and two former bankers were charged in 2024 for their involvement.
Internationally, regulators have increasingly imposed heavy penalties on banks over AML failures. In 2023, Toronto-Dominion Bank agreed to a US$3.1 billion settlement in the U.S., while Denmark’s Danske Bank A/S paid US$2 billion in 2022 to resolve a long-running investigation into its Estonian branch.
MAS Signals Ongoing Vigilance
MAS said the fines conclude a two-year supervisory review that examined AML compliance across affected firms. Violations stemmed from “poor or inconsistent execution” of internal controls, the authority stated. The implicated institutions are now undertaking remedial measures, and MAS will continue to monitor their progress closely.
In addition to financial penalties, MAS issued prohibition orders against four individuals from asset manager Blue Ocean Invest, banning them from financial sector roles for three to six years. Other companies and individuals also received formal reprimands.
Industry Response and Strategic Outlook
UBS, which acquired Credit Suisse in 2023, confirmed full cooperation with the investigation and emphasized its commitment to compliance enhancements. Citigroup representatives noted improvements in customer onboarding and transaction monitoring processes.
Meanwhile, United Overseas Bank Ltd, UOB-Kay Hian, Trident Trust, and Blue Ocean Invest stated they had taken corrective action to address the deficiencies highlighted by regulators.
As Singapore continues to attract wealth from across the globe, its financial sector has experienced double-digit growth. Total assets under management surged by 10% year-on-year to reach S$5.41 trillion in 2023. However, the recent scandal has sparked introspection and institutional reform, as Singapore aims to reinforce its financial integrity amid intensifying global scrutiny.
