MAS fines nine financial institutions S$27.45 million for lapses linked to S$3 billion money-laundering case

SINGAPORE: The Monetary Authority of Singapore (MAS) has imposed S$27.45 million in composition penalties on nine financial institutions following breaches linked to a massive 2023 money-laundering case involving over S$3 billion in assets.

The announcement, made in an MAS press release on 4 July 2025, also confirmed disciplinary action against 18 individuals who managed relationships with suspects in the case.

Credit Suisse received the highest penalty of S$5.8 million. Although now part of UBS, the infractions occurred between November 2017 and October 2023 and involved offshore accounts used to evade US taxes.

Other institutions fined include UOB, UBS, UOB Kay Hian, Citibank, Julius Baer, Blue Ocean Invest, Trident Trust Company, and Liechtenstein’s LGT Bank. MAS did not disclose the amount of money each handled in relation to the case.

This marks the second-largest AML/CFT penalty package in MAS’s history, after the S$29.1 million fines issued during the 2016–17 1Malaysia Development Berhad (1MDB) scandal, which also saw two banks shut down.

Breaches uncovered during supervisory reviews

MAS said the violations were uncovered during supervisory examinations conducted from early 2023 to early 2025. While most institutions had AML frameworks in place, “poor or inconsistent implementation” led to serious compliance lapses.

The authority added it will closely monitor remediation measures being undertaken.

Credit Suisse’s fine also covers separate AML breaches linked to offshore accounts under a non-prosecution agreement reached with the US Department of Justice in May 2025.

Closure of enforcement actions

MAS stated that the penalties conclude its enforcement actions against financial institutions with a “material nexus” to the 2023 case.

The investigation began in 2021 and culminated in island-wide raids in August 2023. Ten foreign nationals, reportedly part of the Fujian gang, were arrested, convicted, and deported after serving jail terms.

Authorities confiscated S$2.79 billion in assets — S$944 million from the ten convicts and S$1.85 billion from fifteen others who fled Singapore.

Two former bank relationship managers, Liu Kai and Wang Qiming, still face criminal proceedings.

Key areas of non-compliance

MAS identified deficiencies in four main areas:

Customer risk assessment	Banks including Julius Baer, Blue Ocean Invest, Citibank, Credit Suisse, and UOB Kay Hian failed to properly rate the moneylaundering risks presented by certain clients. Mis-rating of risk levels led to inadequate scrutiny of several persons of interest.
Source of wealth verification	All nine institutions fell short in corroborating clients’ declared sources of wealth. MAS highlighted failures to detect significant discrepancies or red flags that should have triggered deeper investigations.
Transaction monitoring	Eight institutions (all except Blue Ocean Invest) did not adequately review unusual or inconsistent transactions flagged by their systems. MAS described these as “unusually large, inconsistent with the customers’ profiles, or showed unusual patterns.”
Follow-up on suspicious transaction reports	UOB and UOB Kay Hian failed in timely followup and risk mitigation after filing suspicious transaction reports. This included inadequate enhanced monitoring and failure to review customer risk classifications.

Prohibition orders at Blue Ocean Invest

MAS issued prohibition orders against four individuals at Blue Ocean Invest:

• Tsao Chung-yi, CEO and executive director – six-year prohibition from 1 August 2025
• Wong Xuan Ling, COO – five-year prohibition from 1 August 2025
• Hsia Lun Wei (Henry Hsia), executive director and relationship manager – three-year prohibition from 30 June 2025
• Deng Xixi, former relationship manager – three-year prohibition from 30 June 2025

Each is barred from providing regulated financial services or holding managerial roles during their prohibition period.

MAS said Tsao and Wong failed to ensure AML/CFT systems kept pace with the company’s rapid growth and that all four neglected to escalate red flags or perform enhanced due diligence.

Reprimands for Trident Trust and UOB personnel

Public reprimands were issued to five individuals:

• Sean Andrew Coughlan, managing director, Trident Trust
• Tan Ho Kiat, COO and head of compliance, Trident Trust
• Kek Yen Leng, executive director, Trident Trust
• Ang Sze Hee Alvin, former head of group retail privilege banking, UOB
• Tan Sheng Rong Leonard, former head of group retail privilege banking, UOB

MAS said the reprimands reflect its firm stance on personal accountability in financial-crime compliance.

MAS and industry responses

MAS deputy managing director for financial supervision, Ho Hern Shin, said Singapore remains vulnerable to cross-border money-laundering risks due to its role as a major financial hub.

“The vigilance of our financial institutions and their employees is critical in mitigating such risks,” she said, adding that MAS will continue to act firmly against serious failings.

UBS acknowledged the findings and affirmed its commitment to strengthening Singapore’s financial integrity.

UOB said it accepted MAS’s decision and is enhancing transaction monitoring, customer due diligence, and staff training. The bank added that disciplinary action has been taken where necessary.

UOB Kay Hian stated that the breaches occurred between 2019 and 2023, and that remediation and new compliance frameworks have been completed.

Citibank reported it has reinforced client-onboarding and monitoring procedures, while Julius Baer, Blue Ocean Invest, Trident Trust, and LGT Bank each pledged to strengthen internal AML controls.

Credit Suisse, UBS, and UOB — all previously penalised in the 1MDB scandal — again face scrutiny over recurring lapses.

A UOB spokesperson said the bank had “strengthened operational effectiveness to ensure AML frameworks and controls are consistently and rigorously applied.”