Singapore penalises nine financial institutions for AML breaches

The Monetary Authority of Singapore (MAS) has announced regulatory actions against nine financial institutions (FIs) and several individuals for breaches related to anti-money laundering (AML) regulations.

This decision follows the completion of supervisory examinations linked to a money laundering case that emerged in August 2023.

In total, MAS has imposed composition penalties amounting to S$27.45m ($21.4m) on the nine FIs for violations of AML and countering the financing of terrorism (CFT) requirements.

The penalties were determined based on factors such as the institutions' exposure to persons of interest (POIs), the number of breaches identified, and the weaknesses in their AML/CFT controls.

The penalties for each institution include S$5.8m for Credit Suisse Singapore branch, S$5.6m for United Overseas Bank and S$3m for UBS, Singapore Branch, among others.

MAS has also imposed penalties on financial institutions for regulatory breaches, including Citibank N.A Singapore and Citibank Singapore with S$2.6m, Bank Julius Baer Singapore branch with S$2.4m, and LGT Bank (Singapore) with S$1m.

It also imposed penalties on UOB Kay Hian with S$2.85m, Blue Ocean Invest with S$2.4m, and Trident Trust Company (Singapore) with S$1.8m.

The breaches were uncovered during MAS's supervisory examinations conducted from early 2023 to early 2025.

While most FIs had established AML/CFT policies, the breaches stemmed from inadequate implementation of these measures. The institutions have initiated remediation efforts, and MAS will monitor their progress closely.

MAS identified several areas of concern, including deficiencies in customer risk assessments, where five FIs failed to implement adequate policies for assessing money laundering risks.

Additionally, all nine FIs did not adequately investigate discrepancies in the source of wealth for high-risk customers.

Eight FIs were found lacking in their transaction monitoring processes, failing to review suspicious transactions effectively.

Furthermore, two FIs did not take timely risk mitigation measures following the filing of suspicious transaction reports.

The penalties imposed on Credit Suisse Singapore branch also consider breaches occurring from November 2017 to October 2023, related to accounts maintained on behalf of certain US customers.

MAS Financial Supervision deputy managing director Ho Hern Shin said: “Like other major international financial centres, Singapore is exposed to money laundering risks. The vigilance of our financial institutions and their employees is critical in mitigating such risks.