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The Singapore branches of banking behemoths Credit Suisse, UBS, Citibank and Julius Baer & Co, which must now collectively fork out SGD 13.8 million (USD 10.8 million) for weak [anti-money laundering](https://iclg.com/practice-areas/anti-money-laundering-laws-and-regulations) and countering the financing of terrorism (AML/CFT) measures, are among those penalisedby the Monetary Authority of Singapore (MAS). United Overseas Bank and the Singapore arm of LGT Bank were also hit with million-dollar penalties, alongside capital market services licence holders UOB Kay Hian Private Limited (UOBKH) and Blue Ocean Invest, and licensed trust company Trident Trust Company (Singapore). MAS’ supervisory examinations between early 2023 and early 2025 revealed that, while the firms did have established AML/CFT controls and policies, there was poor or inconsistent implementation of these measures across the board. MAS has also taken regulatory action against 18 individuals responsible for overseeing the financial institutions’ relationships with persons of interest in the scandal. This includes prohibition orders spanning from three to six years and reprimands. ### **THE SCANDAL** The multibillion-dollar money laundering scandal broke open in August 2023, when the Singapore Police Force (SPF) announced that an anti-money laundering and forgery operation had led to the seizure of assets totalling SGD 1 billion (USD 782 million) and the arrest of 10 foreign nationals. By late 2023, the total assets confiscated reached a staggering SGD 3 billion (USD 2.2 billion). The perpetrators were found to have laundered the proceeds from overseas criminal activity, including scams and [illegal gambling](https://iclg.com/practice-areas/gambling-laws-and-regulations), by falsifying documents to verify the origin of funds in Singapore bank accounts. Assets seized included luxury goods, real estate, cryptocurrency and cars. By the summer of 2024, all 10 foreign nationals were sentenced for their role in the illicit activity. ### **PENALTIES** The financial watchdog noted that the severity of individual fines against the financial institutions was dependent on the number of breaches, the extent of the firm’s exposure to individuals linked to the scandal, and the scope of weaknesses in their AML/CFT controls. Credit Suisse and United Overseas Bank faced the heftiest fines, hit with SGD 5.8 million (USD 4.5 million) and SGD 5.6 million (USD 4.4 million) penalties, respectively. The regulator confirmed that Credit Suisse’s heavy penalty also stemmed from its violations of MAS’ AML/CFT requirements between November 2017 and October 2023, relating to accounts maintained by the Singapore branch for certain US customers. All nine financial institutions infringed MAS requirements by failing to detect or adequately investigate “discrepancies or red flags” that should have raised warning signs about customers’ purported sources of wealth (SOW) and the increased risk of money laundering. Some firms were found to have taken no action to corroborate important SOW elements. Of the nine financial institutions penalised, only Blue Ocean Invest successfully reviewed system-flagged suspicious transactions. Those transactions were “unusually large, inconsistent with the customers’ profiles, or showed unusual patterns”. United Overseas Bank and UOB Kay Hian failed to adequately and promptly carry out risk mitigation procedures, including risk classification reviews and enhanced monitoring, after a suspicious transaction had been flagged. Julius Baer & Co, Blue Ocean Invest, Citibank, Credit Suisse and UOB Kay Hian were found to have inadequate rating processes and policies for money laundering risks, leading to inaccurate ratings and an impaired ability to tackle and address the higher money laundering risks that were presented by several of the illegal actors. ### **VIGILANCE** MAS has confirmed that the regulatory action marks the conclusion of its enforcement actions against financial institutions that had a role to play in the scandal. It noted that the firms had “embarked on remediation of the deficiencies and MAS will monitor their progress closely”. MAS deputy managing director for financial supervision Ho Hern Shin said: “Like other major international financial centres, Singapore is exposed to money laundering risks. 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.” ### Author - Ella Fincken - Global Legal Group ### Related Publications - [Anti Money Laundering](https://iclg.com/practice-areas/anti-money-laundering-laws-and-regulations) ### Related Jurisdictions - [ Singapore](https://iclg.com/jurisdictions/singapore) ### Tagged with: \#Monetary Authority of Singapore \#counter terrorism financing \#Singapore \#MAS \#money laundering \#anti-money laundering \#AML \#CFT \#MAS requirements \#Citibank \#Credit Suisse \#UBS \#Julius Baer & Co \#United Overseas Bank \#LGT Bank \#Singapore Police Force \#reprimands \#prohibition order \#foreign nationals \#scams \#gambling \#financial institution \#source of wealth \#falsification of documents \#suspicious transactions \#AML/CFT controls \#Ho Hern Shin [](https://iclg.com/news/22281-austrac-s-aml-crackdown-targets-crypto-and-remittance-firms) [AUSTRAC’s AML crackdown targets crypto and remittance firms](https://iclg.com/news/22281-austrac-s-aml-crackdown-targets-crypto-and-remittance-firms) **The Aussie regulator has issued alerts to over 50 firms as part of a year-long “blitz” intended to weed out non-compliant providers acting in breach of reporting obligations.**  17 February, 2025 [Follow us on LinkedIn](https://www.linkedin.com/showcase/international-comparative-legal-guides-iclg/posts/?feedView=all) [](https://iclg.com/) [Terms & Conditions](https://iclg.com/terms-and-conditions) [Testimonials](https://iclg.com/testimonials) [Contact Us](https://iclg.com/contact-us) [Our Blog](https://iclg.com/blog) [About Us](https://iclg.com/about-us) [Contributor Login](https://iclg.com/briefing/sendcontent) The International Comparative Legal Guides and the International Business Reports are published by: Global Legal Group [](https://www.linkedin.com/showcase/international-comparative-legal-guides-iclg/posts/?feedView=all) [](https://x.com/ICLG_GLG) [](https://www.facebook.com/globallegalgroup) The book is a very practical and useful guide for me as well as my other colleagues in the department." Ricardo Cortes-Monroy - Chief Legal Officer, Nestlé [](https://www.glgroup.co.uk/) 59 Tanner Street, London SE1 3PL, UK [customer.service@glgroup.co.uk](mailto:customer.service@glgroup.co.uk) \| +44 207 367 0720 © 2002-2026 Copyright: ICLG.com \| [Privacy policy](https://iclg.com/privacy-policy) \| [Consent Preferences](https://iclg.com/news/22799-singapore-slaps-hefty-fine-on-financial-institutions-over-aml-failures) \| [Cookie policy](https://iclg.com/cookie-policy) \| [Terms of Use](https://www.glgroup.co.uk/terms-of-use) \| [Conditions of Sale](https://www.glgroup.co.uk/conditions-of-sale)   

## Singapore slaps hefty fine on financial institutions over AML failures  **MAS has imposed its second-largest collective money laundering fine on nine firms connected to a high-profile USD 2.2 billion scandal that rocked the city-state.** Two years on from the exposure of [Singapore’s largest ever money laundering case](https://iclg.com/news/20825-last-of-10-singapore-money-launderers-jailed), the country has proved that its efforts to [strengthen the integrity and security of its financial system](https://iclg.com/news/21213-a-new-dawn-for-singapore-money-laundering-legislation) continue apace, with nine financial institutions connected to the scandal slapped with penalties totalling SGD 27.45 million (USD 19.12 million) on Friday (4 July). The Singapore branches of banking behemoths Credit Suisse, UBS, Citibank and Julius Baer & Co, which must now collectively fork out SGD 13.8 million (USD 10.8 million) for weak [anti-money laundering](https://iclg.com/practice-areas/anti-money-laundering-laws-and-regulations) and countering the financing of terrorism (AML/CFT) measures, are among those penalisedby the Monetary Authority of Singapore (MAS). United Overseas Bank and the Singapore arm of LGT Bank were also hit with million-dollar penalties, alongside capital market services licence holders UOB Kay Hian Private Limited (UOBKH) and Blue Ocean Invest, and licensed trust company Trident Trust Company (Singapore). MAS’ supervisory examinations between early 2023 and early 2025 revealed that, while the firms did have established AML/CFT controls and policies, there was poor or inconsistent implementation of these measures across the board. MAS has also taken regulatory action against 18 individuals responsible for overseeing the financial institutions’ relationships with persons of interest in the scandal. This includes prohibition orders spanning from three to six years and reprimands. ### **THE SCANDAL** The multibillion-dollar money laundering scandal broke open in August 2023, when the Singapore Police Force (SPF) announced that an anti-money laundering and forgery operation had led to the seizure of assets totalling SGD 1 billion (USD 782 million) and the arrest of 10 foreign nationals. By late 2023, the total assets confiscated reached a staggering SGD 3 billion (USD 2.2 billion). The perpetrators were found to have laundered the proceeds from overseas criminal activity, including scams and [illegal gambling](https://iclg.com/practice-areas/gambling-laws-and-regulations), by falsifying documents to verify the origin of funds in Singapore bank accounts. Assets seized included luxury goods, real estate, cryptocurrency and cars. By the summer of 2024, all 10 foreign nationals were sentenced for their role in the illicit activity. ### **PENALTIES** The financial watchdog noted that the severity of individual fines against the financial institutions was dependent on the number of breaches, the extent of the firm’s exposure to individuals linked to the scandal, and the scope of weaknesses in their AML/CFT controls. Credit Suisse and United Overseas Bank faced the heftiest fines, hit with SGD 5.8 million (USD 4.5 million) and SGD 5.6 million (USD 4.4 million) penalties, respectively. The regulator confirmed that Credit Suisse’s heavy penalty also stemmed from its violations of MAS’ AML/CFT requirements between November 2017 and October 2023, relating to accounts maintained by the Singapore branch for certain US customers. All nine financial institutions infringed MAS requirements by failing to detect or adequately investigate “discrepancies or red flags” that should have raised warning signs about customers’ purported sources of wealth (SOW) and the increased risk of money laundering. Some firms were found to have taken no action to corroborate important SOW elements. Of the nine financial institutions penalised, only Blue Ocean Invest successfully reviewed system-flagged suspicious transactions. Those transactions were “unusually large, inconsistent with the customers’ profiles, or showed unusual patterns”. United Overseas Bank and UOB Kay Hian failed to adequately and promptly carry out risk mitigation procedures, including risk classification reviews and enhanced monitoring, after a suspicious transaction had been flagged. Julius Baer & Co, Blue Ocean Invest, Citibank, Credit Suisse and UOB Kay Hian were found to have inadequate rating processes and policies for money laundering risks, leading to inaccurate ratings and an impaired ability to tackle and address the higher money laundering risks that were presented by several of the illegal actors. ### **VIGILANCE** MAS has confirmed that the regulatory action marks the conclusion of its enforcement actions against financial institutions that had a role to play in the scandal. It noted that the firms had “embarked on remediation of the deficiencies and MAS will monitor their progress closely”. MAS deputy managing director for financial supervision Ho Hern Shin said: “Like other major international financial centres, Singapore is exposed to money laundering risks. 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.”