Singapore bashes banks and encrypts as a $3 billion money laundering scandal

In one of the biggest financial enforcement moves in history, Singapore has fined nine major financial institutions a total of S$27.5 million (US$21.5 million) for failed money laundering anti-money (AML) controls. This is in the final chapter of the SGD3 billion money laundering scandal that shook the city-state in 2023.

Singapore’s Monetary Authority (MAS) confirmed the penalties on Thursday, punishing global banks such as Credit Switzerland, UBS, Citibank, UOB, Julius Bear, LGT Bank and asset manager Blue Ocean.

Yes, this is serious. Read more!

Assets that caused crackdowns

The massive incident first surfaced in August 2023, when police attacked multiple property, arrested 10 Chinese citizens and later linked them to organized criminal groups. Authorities have revealed billions of dollars in illegal funds related to luxury real estate, cash and cryptocurrency.

Individuals were later sentenced to a sentence between 13 and 17 months, deported after spending time and permanently banned from returning to Singapore.

Credit Suisse has been fined the most

Among the banks involved, the Credits Wisse Singapore branch received the largest fine of SGD 5.8 million. MAS cited it as “poor or inconsistent implementation of AML controls.”

Others, including UBS, Citi and UOB, were also fined for similar lapses. UOB, Singapore’s third largest bank, said it has already taken corrective measures to strengthen compliance. MAS also issued a prohibition order lasting up to six years for four individuals linked to the case.

This is Singapore’s most serious regulatory action since 2016, when MAS closed BSI Bank about its role in the 1MDB scandal.

Crypto is being monitored closely

The focus lies in traditional banks, but Crypto had a role. Some of the seized assets are in cryptocurrency, bringing the digital assets sector back into the spotlight.

And that’s happening when Singapore tightens its crypto regulations. Under the new rules that we kicked this June:

• Crypto companies offering overseas services must obtain licenses under the FSMA by June 30, 2025
• Retail investors are prohibited from using credit or receiving incentives
• SGD Over 1,500 transactions require a full ID check under travel rules
• Frontends and wallets that serve retail users or earn from token-based services may fall under MAS monitoring

Crypto’s innovation is welcome, but it’s not without strong compliance.

Warning shots for banks and crypto companies

Singapore is raising its bar on financial integrity.

And as crypto becomes more integrated into the global financial system, these rules are no longer just banks.

MAS is trying to build a system where trust is most important. It will be interesting to see the outcome of this crackdown.