In one of Singapore's largest enforcement actions, nine financial institutions have been fined a total of S$27.5 million for failures in anti-money laundering controls.
Origin of the Money Laundering Case
The scandal first emerged in August 2023 when police raided multiple properties and arrested ten Chinese nationals linked to organized crime. Authorities uncovered billions in illegal funds tied to luxury real estate, cash, and cryptocurrencies.
Fines Imposed on Banks
Credit Suisse's Singapore branch received the largest fine of S$5.8 million for 'poor or inconsistent implementation of AML controls.' Other banks like UBS, Citibank, and UOB were also fined for similar lapses. UOB stated that corrective measures to strengthen compliance had already been taken.
Cryptocurrency's Role in the Investigation
Some seized assets included cryptocurrencies, which have brought the digital asset sector into focus. This occurs amid tightening crypto regulations in Singapore, where new rules require crypto firms offering overseas services to be licensed by June 30, 2025.
Singapore is raising standards of financial integrity. As cryptocurrencies become more embedded in global finance, these regulations will affect not only banks but also crypto firms.
