SINGAPORE – Local banks have beefed up oversight around money laundering risks, with one lender reassigning a banker involved in a recent high-profile case to a non-client facing role.

The extra scrutiny is in response to the largest money laundering incident encountered here.

This involved

around $3 billion in illicit funds

The scandal exposed critical weaknesses, with breaches due to poor implementation of polices and controls that in turn highlighted the vital role of gatekeepers – from individuals to banks and corporate secretarial firms – in preventing financial crimes.

The Monetary Authority of Singapore (MAS) said on July 4 that it found shortcomings in the assessment of a customer’s risk and source of wealth and the monitoring of suspicious transactions, and inadequate risk mitigation measures. 

Penalties amounting to $27.45 million were imposed on nine financial institutions on July 4.

UOB, which was hit by $5.6 million in penalties – the second highest after the former Credit Suisse Singapore branch – said it has reviewed the issues and staff involved and addressed accountability and discipline.

Mr Leonard Tan, former team head of group retail privilege banking at UOB, resigned in January 2023.

UOB also conducted extensive internal investigations and determined that there was no wilful misconduct by Mr Alvin Ang, also a former team head of group retail privilege banking. Mr Ang has been “reassigned to a non-client facing role”.

The bank has implemented remedial actions over the past two years to address the deficiencies highligh...