Banks in Singapore tighten management after 3-billion-USD money laundering case

Hanoi – Banks in Singapore, including Citigroup and DBS Group Holdings, are ramping up scrutiny of their wealthy customers and potential clients to avoid exposure to illicit flows.

According to the Strait Times, the moves, which are voluntary, show how lenders are trying to close loopholes that enabled a group of criminals to launder more than 3 billion USD in proceeds from online gambling through at least 16 financial institutions in Singapore in 2023.

Several credit institutions are also implementing additional training to bankers at private banks in the country to help them spot tricks used by criminals to mask their background and sources of funds.

The Monetary Authority of Singapore (MAS) has recently completed on-site inspections of some banks that were involved in the case.

MAS will assess if the financial institutions have implemented adequate and appropriate controls against money laundering and terrorism financing and will take action if they have fallen short of requirements, as it has done in past cases.

Lenders that had the most dealings with the criminals – through deposit accounts, loans and other financial services – are expected to face fines and other punitive measures from the financial regulator after its review concludes.

After the money laundering case became public in August 2023, the Singapore Government set up an inter-ministerial committee to review its anti-money laundering regime and strengthen defences not only in financial institutions but also other sectors like property agents and precious-metals dealers.

Singapore has issued a list of nine companies deemed critical to national security interests, therefore they will need to seek government approval for changes in their ownership or leadership, among other things.