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Singapore has hit banks and wealth managers together with UBS, Citi and Julius Baer with its second-largest collective penalty ever in relation to a money-laundering case that dented the city-state’s clear repute and forged a pall over its wealth administration sector.
9 monetary establishments acquired a collective penalty of S$27.45mn (US$21.5mn), the most important determine since penalties within the 1MDB case, over what Singapore’s regulator referred to as “poor and inconsistent implementation” of controls in a US$2bn money-laundering scandal.
The case, which was linked to on-line playing in Asia, led to the convictions of 10 Chinese language nationals and island-wide seizures of belongings together with gold bars and luxurious automobiles.
It forged a shadow over Singapore’s ambitions to be a number one wealth administration hub and underscored the problem of opening as much as international wealth whereas imposing strict anti-money laundering guidelines.
“Like different main worldwide monetary centres, Singapore is uncovered to money-laundering dangers,” stated Ho Hern Shin, deputy managing director for monetary supervision on the Financial Authority of Singapore.
“MAS will work intently with monetary establishments to advertise extra constant implementation of [anti-money laundering] measures. The place there are critical failings by FIs and their staff, MAS won’t hesitate to take agency motion.”
In its report, the regulator stated it discovered “deficiencies” in how monetary establishments carried out money-laundering danger assessments for brand spanking new shoppers, how they corroborated shoppers’ supply of wealth and the way they dealt with transactions flagged as “suspicious” by their very own programs.
Credit score Suisse, which has since been acquired by UBS, acquired the most important single penalty, at S$5.8mn. UBS was hit with S$3mn and Citi with S$2.6mn.
The regulator additionally named executives and relationship managers at United Abroad Financial institution and smaller establishments for points together with a failure to determine their prospects’ supply of wealth.
United Abroad Financial institution stated it “acknowledge[d] and settle for[ed] MAS’ findings with regard to the recognized areas for enchancment”.
“Over the previous two years, now we have carried out immediate remedial actions to deal with the deficiencies recognized after a complete inside overview, together with stepping up on our transaction monitoring and buyer due diligence processes,” it stated.
Blue Ocean Make investments, an asset supervisor, stated it “acknowledges the findings” and had “carried out measures to reinforce inside insurance policies and procedures”.
“We co-operated totally with the MAS all through the inspection, and an in depth remediation plan to deal with the breaches has been carried out,” stated a spokesperson for Trident Belief.
LGT, Julius Baer and UBS stated in addition they acknowledged the regulator’s findings and had co-operated totally with authorities throughout their investigation.
A spokesperson for Citi Singapore stated the financial institution “strengthened our consumer onboarding and monitoring processes and proceed to work intently with the authorities to guard the integrity of the monetary system and improve monetary crime danger and controls measures”.
Knowledge visualisation by Haohsiang Ko
