MAS to take firm action against financial institutions in breach of money-laundering controls
Some S$1 billion in cash and assets have been seized in one of Singapore’s largest anti-money-laundering operations.
SINGAPORE’S central bank on Wednesday (Aug 16) said that it will take “firm action” against financial institutions (FIs) found to have breached its requirements on anti-money laundering and countering the financing of terrorism.
This comes in the wake of a police operation on Tuesday that seized S$1 billion in cash and assets from suspected launderers, who were living in luxury condominiums and Good-Class Bungalows.
The police arrested 10 foreigners aged between 31 and 44 for suspected involvement in forgery, money laundering and resistance to lawful apprehension. The suspects are from countries such as Cyprus, Turkey, China, Cambodia and Ni-Vanuatu; some of these individuals hold multiple passports.
In a statement on Wednesday evening, the Monetary Authority of Singapore (MAS) said that it worked closely with the Commercial Affairs Department (CAD) to identify potentially tainted funds and assets in Singapore’s financial system and prevent their dissipation.
The CAD had been alerted to suspicious activities, thanks to intelligence and suspicious-transaction reports (STRs) filed by FIs. The filing of STRs was prompted by suspicious fund flows, dubious documentation of source of wealth or funds, and inconsistencies or evasiveness in information provided.
“MAS takes this case seriously, and has been in touch with the FIs where the potentially tainted funds have been identified. Supervisory engagements with these FIs are ongoing,” MAS said, adding that it will also act against FIs with inadequate controls against money laundering and terrorism financing.
Ho Hern Shin, MAS’ deputy managing director for financial supervision, said that this case shows how prompt filing of STRs has helped law enforcement to identify suspects.
“But it has also highlighted that as a global financial hub, Singapore remains vulnerable to transnational money laundering and terrorism financing risks, and that MAS and FIs need to continue to work together to strengthen our defences against these risks,” she added.
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