MAS fines 9 financial institutions S$27.45 million over S$3 billion money‑laundering case

The Monetary Authority of Singapore (MAS) has imposed a total of S$27.45 million in composition penalties on nine financial institutions following breaches linked to a 2023 money‑laundering case involving over S$3 billion in assets. This announcement was made in MAS’s press release on 4 July 2025. Action was also taken against 18 individuals who managed relationships with suspects in the case, signalling MAS’s intent to hold both firms and personnel accountable. Credit Suisse received the highest penalty of S$5.8 million. Although it was acquired by UBS in 2023, MAS noted breaches spanning November 2017 to October 2023 related to offshore accounts that enabled US tax evasion. Following Credit Suisse, UOB, UBS, UOB Kay Hian and Citibank faced significant penalties. Swiss bank Julius Baer, asset manager Blue Ocean Invest, financial services firm Trident Trust Company, and Liechtenstein’s LGT Bank were also fined. MAS statement did not disclose how much money each institution handled in connection to the case. This penalty package is the second largest in MAS’s history for anti‑money laundering and countering the financing of terrorism (AML/CFT) breaches, surpassed only by the S$29.1 million imposed during the 2016–17 1Malaysia Development Berhad (1MDB) scandal, which also led to the closure of two banks.

Breaches uncovered during supervisory examinations

MAS uncovered the breaches during supervisory examinations of these institutions conducted from early 2023 until early 2025. Although MAS acknowledged that most institutions had AML/CFT policies in place, “poor or inconsistent implementation” of those policies led to serious lapses. MAS has said it will closely monitor the remediation efforts undertaken by the financial institutions. The penalty on Credit Suisse includes separate AML/CFT breaches identified in relation to their offshore accounts, which were also recently subject to a non‑prosecution agreement with the US Department of Justice as of 5 May 2025.

Closure in sight for enforcement actions

The authority stated that the penalties conclude its enforcement actions against financial institutions having a “material nexus” to the money‑laundering case. Investigations into the transnational syndicate began in 2021 and culminated in police raids across the island in August 2023. Ten foreign nationals — reportedly members of the Fujian gang — were arrested, convicted, and deported after serving sentences. About S$2.79 billion in assets were surrendered: S$944 million was forfeited by the ten criminals, while S$1.85 billion was surrendered by 15 other foreign individuals who fled Singapore amid the investigation. Related criminal proceedings against two former bank relationship managers, Liu Kai and Wang Qiming, are still before the courts. MAS identified shortcomings in four key 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.
Sourceofwealth 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.”
Followup 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 for individuals at Blue Ocean Invest

MAS issued prohibition orders against four individuals from 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 participating in financial‑institution management during their prohibition period. MAS stated that Tsao and Wong had failed to ensure that AML/CFT controls kept pace with Blue Ocean Invest’s rapid business expansion since its establishment three years ago. All four failed to raise red flags or conduct enhanced due diligence when required. Reprimands for personnel at Trident Trust and UOB MAS also issued public reprimands against five individuals:

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

These reprimands are part of MAS’s firm stance on personal accountability in AML/CFT compliance.

Institutional responses and next steps

MAS deputy managing director for financial supervision, Ho Hern Shin, emphasised that “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 pledged to work closely with institutions to improve implementation of AML/CFT measures, and to take firm action in case of serious failings. Spokespersons from the affected banks issued statements:

• UBS acknowledged MAS’s findings, stated cooperation with the investigation, and affirmed its commitment to safeguarding Singapore’s financial industry.
• UOB said it accepted MAS’s findings and is taking steps to enhance transaction monitoring, customer due diligence, technology and employee training. It cited stronger internal risk management and taken disciplinary action where needed.
• UOB Kay Hian noted the breaches occurred between 2019 and 2023, confirmed completion of remediation efforts and implementation of new processes overseen by its board.
• Citibank said it had strengthened client onboarding and monitoring, reaffirming commitment to governance standards.
• Julius Baer, Blue Ocean Invest, Trident Trust and LGT Bank each acknowledged MAS’s findings, confirmed cooperation during inspection, and pledged enhancements to AML frameworks.

Credit Suisse, UBS and UOB had previously been penalised during the 1MDB investigations, raising questions about recurring AML failures. UOB’s spokesperson acknowledged the history and said the bank had “strengthened its operational effectiveness to ensure its AML frameworks and controls are consistently and rigorously applied.”