MAS fines 9 financial institutions $27.45m for money laundering failures

It also took action against several individuals.

The Monetary Authority of Singapore (MAS) has fined nine financial institutions (FIs) a total of $27.45m for serious breaches of anti-money laundering and countering the financing of terrorism (AML/CFT) rules linked to the major money laundering case in August 2023.

MAS also took action against several individuals, including issuing prohibition orders and public reprimands.

The penalties were based on each institution’s level of exposure to persons of interest (POIs), number of breaches, and severity of control weaknesses.

The banks fined are: Credit Suisse Singapore Branch ($5.8m), United Overseas Bank ($5.6m), UBS Singapore Branch ($3m), Citi Singapore ($2.6m), Bank Julius Baer Singapore ($2.4m), and LGT Bank Singapore ($1m). Non-bank entities fined include UOB Kay Hian ($2.85m), Blue Ocean Invest ($2.4m), and Trident Trust Singapore ($1.8m).

MAS found that the institutions had policies in place but failed to implement them effectively.

Specific failures included poor customer risk assessments, inadequate checks on customers’ sources of wealth, weak transaction monitoring, and insufficient follow-up after filing suspicious transaction reports.

Eight of the nine institutions failed to properly investigate suspicious transactions. Credit Suisse was also penalised for earlier AML/CFT breaches from 2017 to 2023.

Beyond actions against institutions, MAS also took enforcement action against individuals involved in managing the relationships with POIs.

Prohibition orders (POs), ranging from three to six years, were issued to four senior executives from Blue Ocean Invest.

Tsao Chung-Yi, chief executive officer and executive director, received a six-year PO effective 1 August 2025. Wong Xuan Ling, chief operating officer, received a five-year PO effective the same date. Hsia Lun Wei, also known as Henry Hsia, executive director and relationship manager, and Deng Xixi, a former relationship manager, were each issued three-year POs effective 30 June 2025.

MAS said that Tsao and Wong, as senior managers, failed to ensure that the company’s AML/CFT controls kept pace with its rapid business growth. They did not implement adequate processes in areas such as SOW verification, customer risk assessment, screening, and periodic reviews.

It added that they also neglected to subject the company’s AML/CFT framework to independent audits. Along with Hsia and Deng, they failed to raise red flags or conduct enhanced due diligence for customers who presented higher money laundering risks.

During the period of their prohibition orders, the four individuals are barred from performing any regulated activity under MAS’ purview, holding managerial or directorship roles in any financial institution, or acquiring further voting shares in regulated entities.

Additionally, Tsao and Wong are specifically prohibited from performing any risk management functions.

MAS also issued public reprimands to individuals from Trident Trust Company (Singapore) Pte. Ltd for oversight failures. Sean Andrew Coughlan (Managing Director), Tan Ho Kiat (COO), and Kek Yen Leng (Head of Trust Administration) were cited for failing to provide sufficient guidance on establishing customer SOW and for inadequately assessing high-risk client onboarding decisions.

Separately, former UOB executives Ang Sze Hee, Alvin, and Tan Sheng Rong, Leonard, were reprimanded for failing to carry out proper due diligence and risk mitigation measures for multiple POIs. Nine other relationship managers and their supervisors were privately reprimanded for lesser lapses.

MAS said that a reprimand does not automatically mean an individual is currently unfit for employment. It also noted that most employees reviewed were not found to have significant lapses, though further action may be taken after ongoing investigations conclude.

Moreover, MAS has issued updated supervisory expectations and the banking industry has published best practices, especially on verifying sources of wealth.

It urged all FIs to review their controls and align with these standards. MAS reminded front-line staff to stay alert and escalate red flags when needed.

“Like other major international financial centres, Singapore is exposed to money laundering risks,” MAS Deputy Managing Director Ho Hern Shin said. “The vigilance of our financial institutions and their employees is critical in mitigating such risks.”