Singapore Slams Banks, Crypto as $3B Money Laundering Scandal Ends

In one of the biggest financial enforcement moves in its history, Singapore has fined nine major financial institutions a total of S$27.5 million (US$21.5 million) for failures in anti-money laundering (AML) controls. This comes in the final chapter of a S$3 billion money laundering scandal that rocked the city-state in 2023.

The Monetary Authority of Singapore (MAS) confirmed the penalties on Thursday, naming global banks like Credit Suisse, UBS, Citibank, UOB, Julius Baer, LGT Bank, and asset manager Blue Ocean among those penalized.

Yes, this is serious. Read on for the details! 

The Assets That Sparked the Crackdown

This massive case first surfaced in August 2023, when police raided multiple properties and arrested ten Chinese nationals, later linked to organized criminal groups. Authorities uncovered billions in illegal funds tied to luxury real estate, cash, and cryptocurrencies.

The individuals were later sentenced to prison terms between 13 and 17 months, deported after serving time, and permanently banned from returning to Singapore.

Credit Suisse Fined the Most

Among the banks involved, Credit Suisse’s Singapore branch received the largest fine of S$5.8 million. MAS cited “poor or inconsistent implementation of AML controls” as the reason.

Others, like UBS, Citi, and UOB, were also fined for similar lapses. UOB, Singapore’s third-largest bank, said it has already taken corrective steps to strengthen compliance. MAS has also issued prohibition orders lasting up to six years against four individuals linked to the case.

This is Singapore’s most serious regulatory action since 2016, when the MAS shut down BSI Bank over its role in the 1MDB scandal.

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Crypto Is Being Closely Watched

While the focus is on traditional banks, crypto had a role to play. Some of the seized assets were in cryptocurrencies, pulling the digital asset sector into the spotlight once again.

And it’s happening at a time when Singapore is tightening crypto regulations. Under new rules that kicked in this June:

• Crypto firms offering overseas services must be licensed under the FSMA by June 30, 2025
  
• Retail investors are banned from using credit or receiving incentives
  
• Transactions over SGD 1,500 require full ID checks under the Travel Rule
  
• DeFi frontends and wallets that serve retail users or earn from token-based services may now fall under MAS oversight

Crypto innovation is welcome, but not without strong compliance.

A Warning Shot to Banks and Crypto Firms

Singapore is raising the bar on financial integrity.

And as crypto becomes more embedded in the global financial system, these rules aren’t just for banks anymore.

The MAS is trying to build a system where trust is the most important. It will be interesting to see the results of this crackdown. 

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