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Singapore has taken strict action against nine financial institutions for failing to stop money laundering connected to illegal online gambling. The Monetary Authority of Singapore (MAS) imposed total fines of €18.3 million, showing the seriousness of the issue. This marks one of the biggest enforcement efforts in the country’s financial sector and highlights deep problems in how some banks handle customer checks and risky transactions.
Big Banks Face Heavy Penalties
The biggest penalties were handed to some of Singapore’s most well-known banks. Here’s a breakdown of the major fines:
- Credit Suisse Singapore Branch: S$5.8 million
- United Overseas Bank (UOB): S$5.6 million
- UBS Singapore: S$3 million
- Citibank Singapore: S$2.6 million (combined)
These fines are part of an investigation started in August 2023. The case involved ten foreign nationals who were suspected of laundering money through offshore gambling platforms, especially those linked to Philippine Offshore Gaming Operators (POGOs).
During the probe, authorities seized over S$3 billion in assets. These included luxury homes, watches, cars, expensive wines, and large amounts of cash. It was one of the biggest criminal cases Singapore has seen involving illegal gambling and financial fraud.
Weak Systems and Missed Red Flags
The investigation found that many banks did not follow proper procedures to know who their customers were. They failed to:
- Check where the customer’s money came from
- Watch for strange or large transactions
- Take action even when warning signs were clear
Even though these banks had anti-money laundering (AML) systems in place, they did not use them properly. Some customers had unexplained wealth or moved large sums that didn’t match their profile, yet the banks still processed their transactions without asking questions.
Individual Accountability: Not Just Institutions
The MAS also held individuals responsible. Several people across the affected firms faced consequences, including:
- Four senior executives from Blue Ocean Invest banned from working in finance for three to six years
- Multiple relationship managers and supervisors were formally warned or investigated
This shows that Singapore is not just punishing companies it is also making sure that those who ignored the rules face real consequences.
What This Means for the Industry
This case is a clear reminder for banks and financial institutions to improve their risk controls. With rising concerns around online gambling, offshore platforms, and digital scams, countries like Singapore are expected to crack down even harder on non-compliant behaviour.
These actions also send a strong message to the global financial community: financial crime will not be tolerated, and both institutions and individuals will be held accountable.
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