Singapore’s financial regulator has issued its second-largest collective fine, totalling S$27.45 million (US$21.5 million), against nine banks and wealth managers, including UBS, Citi, and Julius Baer. The action follows a major money-laundering case that has shaken the city-state’s reputation for financial integrity and raised concerns over the robustness of its wealth management sector.
The Monetary Authority of Singapore (MAS) cited “poor and inconsistent implementation” of anti-money laundering (AML) controls in a sprawling US$2 billion scandal linked to online gambling across Asia. The case resulted in the conviction of ten Chinese nationals and the seizure of high-value assets such as gold bars and luxury vehicles.
This latest move marks the most severe enforcement action since the penalties handed out during the 1MDB investigation and comes at a time when Singapore is striving to cement its position as a global wealth hub. However, the findings have highlighted the risks involved in welcoming large flows of foreign wealth while upholding strict compliance standards.
MAS found widespread failures among financial institutions in how they assessed money-laundering risks during client onboarding, verified sources of wealth, and responded to internally flagged suspicious transactions. Credit Suisse, now part of UBS, received the highest single penalty of S$5.8 million. UBS was fined S$3 million, and Citi S$2.6 million.
Other institutions named include United Overseas Bank (UOB), LGT, Trident Trust, Julius Baer, and Blue Ocean Invest. UOB accepted MAS’s findings and stated it had already taken corrective action to strengthen its due diligence and monitoring systems. Similar acknowledgements came from the other firms, with several confirming the rollout of enhanced internal procedures and full cooperation with MAS.
MAS deputy managing director Ho Hern Shin stressed the importance of robust safeguards, warning that the authority will take decisive action when lapses are identified. “Like other major international financial centres, Singapore is exposed to money-laundering risks,” she said, adding that MAS will continue working with institutions to ensure greater consistency in applying AML standards.
This enforcement underscores the delicate balance Singapore faces as it opens its financial sector to global wealth while preserving its reputation as a clean and trusted jurisdiction.
