The Monetary Authority of Singapore (MAS) has imposed composition penalties amounting to $27.45 million to nine financial institutions (FIs) for breaching the central bank’s anti-money laundering and countering the financing of terrorism (AML/CFT) requirements.
The penalties come after the MAS completed its supervisory examinations against “pertinent” FIs with connections to persons of interest in Singapore’s record $3 billion money-laundering case in August 2023.
The examinations also looked at the FI’s employees who fell short of MAS’s AML/CFT requirements.
“The present suite of actions marks the conclusion of MAS’s enforcement actions against FIs with material nexus to the major money laundering case,” reads the central bank’s statement on July 4.
According to MAS, the penalties took into account various factors such as the FI’s exposure to the persons of interest, the number of breaches and the “degree of weakness” in the FI’s AML/CFT controls.
The MAS adds that it found shortcomings in the areas of customer risk assessment, establishing and corroborating sources of wealth from customers who posed a higher risk of money laundering, transaction monitoring and following up on post-suspicious transport reports.
Of the nine FIs, six are banks. They are: Credit Suisse Singapore branch; United Overseas Bank (UOB); UBS AG, Singapore branch; Citibank N.A. Singapore (CNAS) and Citibank Singapore Limited (CSL); Julius Baer’s Singapore branch and LGT Bank (Singapore).
Two of the FIs are capital market services licence holders, UOB Kay Hian and Blue Ocean Invest. A licensed trust company, Trident Trust Company, was also slapped with penalties.
See also: MAS imposes composition penalties totalling $960,000 on five major payment institutions
The breaches were said to be identified during MAS’s examinations, which took place from early 2023 to early 2025. While most of the FIs had established AML/CFT policies and controls, MAS says the breaches stemmed from “poor or inconsistent” implementation of these policies and controls.
“The FIs have embarked on remediation of the deficiencies and MAS will monitor their progress closely,” says the central bank.
Prohibition orders against individuals
In addition, MAS has issued prohibition orders against four individuals from Blue Ocean Invest for failing to comply with its AML/CFT requirements.
They are: Tsao Chung-Yi, CEO and executive director; Wong Xuan Ling, chief operating officer (COO); Hsia Lun Wei @ Henry Hsia, executive director and relationship manager and Deng Xixi, former relationship manager.
Tsao was issued a six-year prohibition order with effect from Aug 1 this year, while Wong was issued a five-year prohibition order with effect from the same day. Hsia and Deng were each issued a three-year prohibition order with effect from June 30.
Tsao and Wong were said to have failed as senior managers to ensure AML/CFT controls in Blue Ocean Invest while all four were said to have failed to raise red flags when they were made aware of information that should raise suspicion. They also failed to perform customer due diligence (CDD) for multiple persons of interest.
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For the duration of their prohibition orders, Tsao, Wong, Hsia and Deng are not allowed to conduct any activity or business or provide any services regulated or authorised by MAS. They are also not allowed to act as a director, partner or manager of any FI.
In addition, all four are not allowed to become any substantial shareholder of any FI or acquire more shares if they are already substantial shareholders. Tsao and Wong are also prohibited from performing the function of risk management and control.
Reprimands
The MAS has also issued reprimands to three individuals from Trident Trust Company and two individuals from UOB.
From Trident Trust Company, managing director, executive director and resident manager, Sean Andrew Coughlan; chief operating officer, executive director and head of compliance, Tan Ho Kiat; and executive director and head of trust administration and resident manager, Kek Yen Leng, failed to ensure that the company’s policies provided enough guidance on establishing their customers’ source of wealth.
Coughlan, Tan and Kek were also said to have failed as members of Trident Trust Company’s new business committee to “detect or adequately assess multiple deficiencies” in their customers’ corroboration when it came to their sources of wealth.
From UOB, Ang Sze Hee, Alvin, the bank’s former team head of group retail privilege banking and Tan Sheng Rong, Leonard, who was also the bank’s former head of group retail privilege banking, were said to have failed to conduct or ensure the proper due-diligence or issued post suspicious transaction reports for several persons of interest.
Another nine relationship managers and relationship manager supervisors were also privately reprimanded for more “limited lapses”.
Further to its statement, MAS says FIs should benchmark themselves against the central bank’s supervisory expectations and industry best practices and conduct “robust, reasonable and risk-proportionate defences” against money laundering.
“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,” says Ho Hern Shin, deputy managing director of financial supervision at MAS.
“MAS will work closely with financial institutions to promote more consistent implementation of AML/CFT measures. Where there are serious failings by FIs and their employees, MAS will not hesitate to take firm action,” Ho adds.
