Nine Financial Institutions Penalized for Compliance Failures
Singapore’s largest money laundering scandal has officially concluded after a two-year investigation. The Monetary Authority of Singapore (MAS) imposed fines totaling S$27.5 million (US$21.5 million) on nine financial institutions, including global banks such as UBS and Citigroup, for failures in anti-money laundering (AML) procedures.
The case involved S$3 billion (US$2.2 billion) in illicit funds and led to the seizure of assets including luxury properties, cryptocurrency, cash, and high-end goods. Authorities traced the criminal network back to a group known as the Fujian gang, composed of ten individuals of Chinese origin.
UBS, Citigroup Among the Hardest Hit
The largest single penalty was issued to the Singapore branch of Credit Suisse, now a part of UBS, which was fined S$5.8 million for serious lapses in AML controls. Citigroup’s Singapore unit also received a significant fine for failing to detect and report suspicious transactions.
Other institutions involved in the enforcement action include domestic and international firms that were found to have insufficient due diligence practices and inadequate monitoring systems.
Investigation Spanned Two Years and Ended in Convictions
The probe, launched in 2023, revealed how the Fujian gang used Singapore’s financial and property markets to launder billions in illicit wealth. Authorities convicted ten individuals, and two former bankers were also charged with aiding the laundering activities.
The enforcement action represents one of the most complex investigations in Singapore’s history, touching on the intersection of traditional finance, digital assets, and high-end real estate.
Cryptocurrency and Luxury Assets Seized
The case highlighted the growing role of cryptocurrency in financial crimes. In addition to cash and luxury condominiums, Singaporean authorities seized digital assets linked to the laundering ring. This reinforces calls for tighter regulation of virtual asset service providers (VASPs).
MAS has stated that all fined institutions are implementing corrective measures to strengthen their compliance frameworks. The regulator will closely monitor their progress and ensure that gaps are addressed to prevent future violations.
Disclaimer
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