According to Odaily, Citigroup Inc., DBS Group Holdings Ltd., and other banks implicated in Singapore's largest money laundering scandal are intensifying their scrutiny of high-net-worth and potential clients to prevent the influx of illicit funds. Private bankers from several institutions are also undergoing additional training to help them detect tactics used by criminals to conceal their backgrounds and sources of funds. These voluntary measures indicate that the institutions are attempting to fill gaps in their client screening processes.
The Monetary Authority of Singapore (MAS) recently completed on-site inspections of some of the banks involved in the case. Insiders suggest that after the review, banks with the most transactions with criminals, through deposit accounts, loans, and other financial services, are expected to face fines and other punitive measures from financial regulators. A MAS spokesperson stated that the authority would assess whether financial institutions have implemented sufficient and appropriate controls against money laundering and terrorist financing. If they fail to meet the requirements, action will be taken, as in past cases, and regulatory work is ongoing.
Following the exposure of the money laundering case in August 2023, the Singapore government established an inter-ministerial committee to review its anti-money laundering system and strengthen the defenses of industries such as financial institutions, real estate intermediaries, and precious metal traders. In August of the previous year, Singapore cracked its largest money laundering case in recent years, with the arrest of the founder of Xinbao Investment, Su Baolin, and nine others. The ten foreign nationals arrested in the case are suspected of forging documents and money laundering, with the total value of the involved assets estimated at about 1 billion Singapore dollars. Preliminary judgments indicate that all ten individuals originally hail from Fujian Province, China.