Singapore regulator slaps fine on 9 firms over AML failures
Singapore’s central bank, the Monetary Authority of Singapore (MAS), has fined nine financial institutions a total of S$27.45 million (US$21.5 million) for breaches of anti-money laundering (AML) and countering the financing of terrorism (CFT) rules. These penalties are connected to one of the country’s biggest money laundering scandals, involving the seizure of more than S$3 billion (US$2.2 billion) in assets in 2023.
The regulatory action follows supervisory inspections conducted by MAS between early 2023 and early 2025. Although the financial institutions had AML/CFT policies in place, MAS found that these were applied inconsistently and ineffectively. The inspections uncovered broad failings in how customer risks were assessed, how sources of wealth were verified, and how suspicious transactions were monitored.
Failures in risk controls and transaction monitoring
MAS identified multiple failings across the institutions. In several cases, red flags such as large, irregular transactions or unexplained wealth were not properly investigated. In particular, United Overseas Bank (UOB) and UOB Kay Hian were found to have failed to take timely risk mitigation actions after filing suspicious transaction reports (STRs).
Credit Suisse’s Singapore branch received the largest penalty of S$5.8 million. This included breaches dating back to November 2017, involving accounts maintained for certain US customers. United Overseas Bank was fined S$5.6 million, and UBS’s Singapore branch received a penalty of S$3 million. Citibank, covering both Citibank N.A. Singapore and Citibank Singapore Limited, was fined S$2.6 million. Bank Julius Baer’s Singapore branch was penalised S$2.4 million, while LGT Bank Singapore was fined S$1 million.
Among capital markets firms, UOB Kay Hian Private Limited was fined S$2.85 million. Blue Ocean Invest was fined S$2.4 million, and Trident Trust Company (Singapore) received a S$1.8 million penalty. MAS said the fines were based on how many breaches occurred, how closely each firm was linked to persons of interest (POIs), and how weak their AML/CFT systems were overall.
Key areas of non-compliance
. First, five institutions—Bank Julius Baer, Blue Ocean Invest, Citi, Credit Suisse, and UOB Kay Hian—had inadequate systems for properly assessing money laundering risks posed by their clients, which led to misclassification of customer risk levels.
Second, all nine financial institutions failed to sufficiently corroborate the source of wealth for customers flagged as higher risk. In some cases, obvious discrepancies in documents were overlooked. Third, eight institutions—Bank Julius Baer, Citi, Credit Suisse, LGT Bank, UOB, UOB Kay Hian, Trident Trust, and UBS—failed to properly review suspicious transactions identified by their internal monitoring systems. These transactions were often unusually large or inconsistent with customer profiles.
Fourth, MAS found that UOB and UOB Kay Hian did not follow up appropriately after STRs were filed, such as enhancing monitoring measures or re-evaluating client risk.
Prohibition orders against four executives
MAS has issued prohibition orders (POs) to four individuals from Blue Ocean Invest for serious breaches in managing client relationships linked to high-risk individuals.
Tsao Chung-Yi, CEO and Executive Director of Blue Ocean Invest, received a six-year PO effective from 1 August 2025. Wong Xuan Ling, Chief Operating Officer, received a five-year PO from the same date. Executive Director and Relationship Manager Henry Hsia and former Relationship Manager Deng Xixi were each barred for three years, effective from 30 June 2025.
MAS stated that Tsao and Wong failed to ensure that Blue Ocean Invest’s AML/CFT systems kept pace with the company’s rapid growth. They did not implement adequate policies in areas such as source of wealth verification, risk assessment, name screening, and ongoing client reviews. The company’s AML policies were also not subjected to audit. All four individuals failed to act on suspicious information or carry out enhanced due diligence as required.
During the ban periods, these individuals are barred from working in any MAS-regulated financial activity, from managing or being involved in financial institutions, and from increasing ownership in regulated entities. Additionally, Tsao and Wong are prohibited from taking on roles related to risk management and control.
Reprimands for managers at Trident Trust and UOB
MAS also issued reprimands to senior personnel at Trident Trust Company (Singapore). Managing Director Sean Andrew Coughlan, Chief Operating Officer Tan Ho Kiat, and Head of Trust Administration Kek Yen Leng were found to have failed to ensure clear procedures for confirming client source of wealth. As members of Trident’s New Business Committee, they also did not detect or adequately evaluate flaws in documentation provided by high-risk clients.
At United Overseas Bank, two former team heads of group retail privilege banking—Ang Sze Hee (Alvin) and Tan Sheng Rong (Leonard)—were reprimanded for not conducting proper due diligence or timely follow-up actions after STRs involving several high-risk clients.
Nine more relationship managers and supervisors were privately reprimanded for less severe breaches. MAS clarified that a reprimand reflects past misconduct and does not necessarily mean that an individual is unfit for future employment in the financial industry.
Closure of enforcement actions and MAS guidance
This series of actions concludes MAS’s enforcement against financial institutions linked to the August 2023 money laundering case. The scandal began with a police raid that uncovered more than S$1 billion (US$782 million) in assets, including luxury properties, cryptocurrencies, vehicles, and jewellery. By the end of 2023, the total seized assets reached S$3 billion. Authorities found that money from overseas scams and other crimes had been laundered into Singapore through falsified documents. Ten foreign nationals were arrested and convicted by mid-2024.
MAS confirmed that all penalised financial institutions have started to fix the weaknesses found during the inspections, and it will continue to monitor their progress. The regulator also issued updated supervisory expectations and urged banks and financial firms to benchmark their AML/CFT procedures against best practices in the industry. These include stronger verification of customer wealth and enhanced transaction monitoring systems.
Relationship managers and their supervisors were reminded that they are the first line of defence against financial crimes. They are expected to remain alert to suspicious activity, especially during the customer due diligence process, and escalate concerns within their organisations where needed.
MAS reaffirms commitment to strong AML measures
Ho Hern Shin, Deputy Managing Director (Financial Supervision) at MAS, 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. 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.”
