In a major regulatory move, the Monetary Authority of Singapore (MAS) has imposed a total of SGD 27.45 million (approximately USD 21.5 million) in fines on nine financial institutions for failures related to anti-money laundering (AML) and counter-terrorism financing (CFT) controls. The penalties follow one of Singapore’s largest and most complex money laundering investigations to date, involving more than SGD 3 billion in criminal proceeds.
Scope of the Case
The fines are the result of supervisory reviews conducted between 2023 and 2025, in connection with an August 2023 operation where ten foreign nationals were arrested. Authorities uncovered a vast network involving illicit funds flowing through Singapore’s financial system, including the purchase of luxury real estate, cars, watches, and precious metals, with assets amounting to nearly SGD 2.8 billion seized.
Penalized Institutions and Penalty Amounts
The following institutions were penalized for significant lapses in AML/CFT controls:
- Credit Suisse (Singapore): SGD 5.8 million
- United Overseas Bank (UOB): SGD 5.6 million
- UBS (Singapore): SGD 3.0 million
- Citibank (Singapore): SGD 2.6 million
- Julius Baer (Singapore): SGD 2.4 million
- LGT Bank: SGD 1.0 million
- UOB Kay Hian: SGD 2.85 million
- Blue Ocean Invest: SGD 2.4 million
- Trident Trust Company: SGD 1.8 million
MAS determined the fines based on multiple factors, including the degree of exposure to the individuals involved, severity of lapses, and systemic weaknesses.
Key Failures Identified
The institutions had existing AML/CFT frameworks but failed to implement them effectively. MAS cited common deficiencies such as:
- Inadequate assessment and documentation of customer risk
- Failure to establish and verify sources of wealth and funds
- Weak monitoring and delayed escalation of suspicious transactions
- Poor follow-up on red flags despite multiple alerts
Eight of the nine institutions failed to act on warning signs even after suspicious transaction monitoring systems flagged them.
Actions Against Individuals
MAS also issued prohibition orders ranging from three to six years against four former staff members of Blue Ocean Invest, barring them from conducting regulated activities in Singapore. Additionally, several senior managers at UOB received formal reprimands, while nine relationship managers across different firms were issued private warnings.
A Regulatory Message to the Industry
This enforcement action marks one of the most extensive penalties ever imposed in Singapore’s financial sector. While the monetary total is slightly lower than the SGD 29.1 million fined during the 1MDB scandal in 2017, the scale and complexity of the 2023 case underscore heightened regulatory expectations and oversight.
Ho Hern Shin, MAS’s Deputy Managing Director for Financial Supervision, emphasized that Singapore remains a key target for illicit finance and that financial institutions must maintain strong and vigilant compliance standards.
Forward Steps
MAS stated that all nine institutions have committed to taking remedial measures to strengthen their compliance programs. These institutions will remain under close supervisory review to ensure timely and effective implementation.
The regulator also issued updated guidance to reinforce AML/CFT expectations across the sector, signaling that any future lapses will be met with swift and firm enforcement.
Conclusion
The MAS’s decisive actions reflect Singapore’s zero-tolerance approach toward financial crime. This case serves as a stark reminder to financial institutions that robust compliance is not just a policy requirement, but a critical component of safeguarding the integrity of the financial system.
