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Credit Suisse, UOB, UBS, Citi among 9 financial institutions penalised S$27.5 million for roles in S$3b money laundering case
Credit Suisse, UOB, UBS, Citi among 9 financial institutions penalised S$27.5 million for roles in S$3b money laundering case

Business Times

time04-07-2025

  • Business
  • Business Times

Credit Suisse, UOB, UBS, Citi among 9 financial institutions penalised S$27.5 million for roles in S$3b money laundering case

[SINGAPORE] Nine financial institutions (FIs) in Singapore have been penalised a total of S$27.5 million for anti-money laundering (AML) related breaches, said the Monetary Authority of Singapore (MAS). The penalties relate to the S$3 billion money laundering case from August 2023, and marks the conclusion of MAS' enforcement against FIs with material nexus to the case, the central bank and financial regulatory authority said on Friday (Jul 4). UOB is the only local bank on the list, receiving the second-highest composition penalty at S$5.6 million. Other banks on the list are the Singapore arms of Credit Suisse, UBS, Citi, Julius Baer and LGT Bank. MAS has penalised UOB Kay Hian (UOBKH), Blue Ocean Invest and Trident Trust Company in Singapore as well. The penalty on Credit Suisse – the highest on the list at S$5.8 million – also accounts for breaches of anti-money laundering and countering the financing of terrorism (AML/CFT) requirements from November 2017 to October 2023, relating to accounts it maintained for certain US customers. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up MAS' composition penalties took into account various factors, including the extent of the FIs' exposure to the persons of interest in the case, the number of breaches to AML/CFT requirements, and the degree of weakness in the FI's AML/CFT controls. MAS said that most of the FIs had established AML/CFT policies and controls, with the breaches arising out of 'poor or inconsistent implementation'. Julius Baer, Citi, Credit Suisse, Blue Ocean Invest and UOBKH failed to implement adequate policies or processes for the rating of money-laundering risks presented by some of its customers, resulting in misratings. All nine FIs did not detect or adequately follow up on significant discrepancies or red flags noted in information or documents that should have cast doubt on some customers' purported source of wealth. In some cases, there was no corroboration of significant aspects of their source of wealth, MAS said. All the FIs, except Blue Ocean Invest, failed to adequately review relevant transactions flagged as suspicious by their own systems. UOB and UOBKH also failed to take adequate and timely risk mitigation measures on the customers on which they had filed suspicious transaction reports. For specific individuals, MAS issued prohibition orders – ranging from three to six years – to four individuals from Blue Ocean Invest. Tsao Chung-Yi, chief executive and executive director Wong Xuan Ling, chief operating officer Henry Hsia, executive director and relationship manager Deng Xixi, former relationship manager MAS also issued reprimands to individuals from Trident Trust and UOB for lapses. Sean Andrew Coughlan, managing director, executive director and resident manager, Trident Trust Tan Ho Kiat, chief operating officer, executive director and head of compliance, Trident Trust Kek Yen Leng, executive director, head of trust administration and resident manager, Trident Trust Alvin Ang, former team head of group retail privilege banking, UOB Leonard Tan, former team head of group retail privilege banking, UOB Another nine relationship managers and supervisors were privately reprimanded for more limited lapses. MAS said that it had reviewed the conduct of a larger number of employees of the FIs connected to the case, but did not find evidence of significant lapses by most of them. However, it said that it may take action against a few remaining individuals after the ongoing court proceedings or investigations havae concluded. MAS added that the FIs have embarked on remediation of the deficiencies, and it will monitor their progress. Affected banks, including UOB, Citi, UBS and Julius Baer, said that they acknowledge the penalties and have taken steps to improve their AML controls, in response to queries from The Business Times. In 2017, the authority took action against several financial institutions for their involvement in the 1MDB scandal. Two banks, BSI Bank and Falcon Bank, were shut down, and total financial penalties of S$29.1 million were imposed on eight banks for various breaches of AML requirements. The banks included DBS, UOB, UBS, Standard Chartered and Credit Suisse.

UBS, Citi Among Banks Punished in Singapore Laundering Saga
UBS, Citi Among Banks Punished in Singapore Laundering Saga

Mint

time04-07-2025

  • Business
  • Mint

UBS, Citi Among Banks Punished in Singapore Laundering Saga

(Bloomberg) -- Singapore imposed S$27.5 million ($21.5 million) in penalties on nine financial firms, including a few of the world's biggest banks, for lapses related to the city's largest money laundering case. Credit Suisse's Singapore branch was slapped with the highest amount of S$5.8 million, the Monetary Authority of Singapore said Friday in a statement. The local units of UBS Group AG and Citigroup Inc. were also rapped for breaching anti-money laundering rules. This is the biggest regulatory action taken by MAS since it shut down Swiss bank BSI SA's local unit in 2016 and penalized banks for their failings related to Malaysia's troubled 1MDB fund. The latest move underscores Singapore's attempts to repair its reputation and draw a line on a S$3 billion scandal that exposed gaps in the city's defenses against illicit money. Globally, regulators have frequently imposed tougher fines on banks for anti-money laundering lapses. Last year, Toronto-Dominion Bank reached a $3.1 billion settlement over its failure to catch and stop money laundering at numerous US branches. In 2022, Danske Bank A/S was fined $2 billion to end a long-running US probe into money laundering after admitting that a large chunk of 200 billion euros ($236 billion) in transactions at its Estonian branch were suspicious. The MAS said the move wraps up its two-year supervisory review in relation to the money-laundering case that publicly unfolded in August 2023. Authorities seized about S$3 billion in assets including cash, real estate and cryptocurrencies related to the case. Ten people of Chinese origin, dubbed the Fujian gang, were convicted while two former bankers were charged in 2024 for their roles in the fiasco. The breaches by the financial institutions were due to 'poor or inconsistent implementation' of anti-money laundering controls, the MAS said. The firms are remedying the deficiencies and the regulator will monitor their progress closely. Apart from the financial penalties, MAS also issued prohibition orders of between three and six years on four individuals at asset manager Blue Ocean Invest. Several people from other firms drew reprimands from the regulator. United Overseas Bank Ltd., Singapore's third-largest lender, and its associate firm UOB-Kay Hian, Trident Trust, and Blue Ocean Invest said they have taken remedial action to address the gaps. UBS, which took over Credit Suisse in 2023, said it has fully cooperated with the authorities. Citi further strengthened its client onboarding and monitoring processes, among other things, said a spokesman. Singapore's attractiveness as a global wealth hub has boosted businesses at banks from DBS Group Holdings Ltd. to UBS. Assets managed by financial firms in Singapore rose 10% to S$5.41 trillion in 2023 from a year earlier. The scale of the case rocked the wealthy city-state and prompted a government review of its safeguards against dirty money. Singapore was also a focal point of the fraud at German payments firm Wirecard AG. (Adds context on fines in fourth paragraph, MAS reprimand in seventh paragraph, and comments from firms.) More stories like this are available on

Credit Suisse, UOB, UBS, Citi among 9 financial institutions penalised S$27 million for roles in S$3b money laundering case
Credit Suisse, UOB, UBS, Citi among 9 financial institutions penalised S$27 million for roles in S$3b money laundering case

Business Times

time04-07-2025

  • Business
  • Business Times

Credit Suisse, UOB, UBS, Citi among 9 financial institutions penalised S$27 million for roles in S$3b money laundering case

[SINGAPORE] Nine financial institutions (FIs) in Singapore have been penalised a total of S$27.5 million for anti-money laundering related breaches, said the Monetary Authority of Singapore (MAS). The penalties relate to the S$3 billion money laundering case from August 2023, and marks the conclusion of MAS' enforcement against FIs with material nexus to the case, the central bank and financial regulatory authority said on Friday (Jul 4). UOB is the only local bank on the list, receiving the second-highest composition penalty at S$5.6 million. Other banks on the list are the Singapore arms of Credit Suisse, UBS, Citi, Julius Baer and LGT Bank. MAS has penalised UOB Kay Hian (UOBKH), Blue Ocean Invest and Trident Trust Company in Singapore as well. The penalty on Credit Suisse – the highest on the list at S$5.8 million – also accounts for breaches of anti-money laundering and countering the financing of terrorism (AML/CFT) requirements from November 2017 to October 2023, relating to accounts it maintained for certain US customers. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up MAS' composition penalties took into account various factors, including the extent of the FIs' exposure to the persons of interest in the case, the number of breaches to AML/CFT requirements, and the degree of weakness in the FI's AML/CFT controls. MAS said most of the FIs had established AML/CFT policies and controls, with the breaches arising out of 'poor or inconsistent implementation'. Julius Baer, Citi, Credit Suisse, Blue Ocean Invest and UOBKH failed to implement adequate policies or processes for the rating of money-laundering risks presented by some of its customers, resulting in misratings. All nine FIs did not detect or adequately follow up on significant discrepancies or red flags noted in information or documents that should have cast doubt on some customers' purported source of wealth. In some cases, there was no corroboration of significant aspects of their source of wealth, MAS said. All the FIs, except Blue Ocean Invest, failed to adequately review relevant transactions flagged as suspicious by their own systems. UOB and UOBKH also failed to take adequate and timely risk mitigation measures on the customers on which they had filed suspicious transaction reports. For specific individuals, MAS issued prohibition orders – ranging from three to six years – to four individuals from Blue Ocean Invest. Tsao Chung-Yi, chief executive and executive director Wong Xuan Ling, chief operating officer Henry Hsia, executive director and relationship manager Deng Xixi, former relationship manager MAS also issued reprimands to individuals from Trident Trust and UOB for lapses. Sean Andrew Coughlan, managing director, executive director and resident manager, Trident Trust Tan Ho Kiat, chief operating officer, executive director and head of compliance, Trident Trust Kek Yen Leng, executive director, head of trust administration and resident manager, Trident Trust Alvin Ang, former team head of group retail privilege banking, UOB Leonard Tan, former team head of group retail privilege banking, UOB Another nine relationship managers and supervisors were privately reprimanded for more limited lapses. MAS said it had reviewed the conduct of a larger number of employees of the FIs connected to the case, but did not find evidence of significant lapses by most of them. However, it said that it may take action against a few remaining individuals after the ongoing court proceedings or investigations havae concluded. MAS said the FIs have embarked on remediation of the deficiencies, and MAS will monitor their progress. Affected banks, including UOB, Citi, UBS and Julius Baer, said they acknowledge the penalties and have taken steps to improve their AML controls, in response to queries from The Business Times. In 2017, the authority took action against several financial institutions for their involvement in the 1MDB scandal. Two banks, BSI Bank and Falcon Bank, were shut down, and total financial penalties of S$29.1 million were imposed on eight banks for various breaches of AML requirements. The banks included DBS, UOB, UBS, Standard Chartered and Credit Suisse.

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