- Leading Singapore banks witnessed a money laundering case in August 2023 that caught global attention.
- Presently, bankers are being trained to improve scrutiny of potential customers.
Singapore banks affected by the substantial money laundering announced increased scrutiny of their wealthy customers according to Bloomberg. Leading banks such as Citigroup Inc., and DBS Group Holdings Ltd. are among the banks that are working to tighten security following the attack in 2023.
Notably, the money laundering case that occurred in August 2023 involved sixteen financial institutions. The incident which occurred through online gambling saw a loss of a significant 2.2 billion USD, worth more than 3 billion SGD.
Furthermore, the Singapore government conducted multiple raids in affluent neighborhoods following the incident where it seized numerous properties. The accused involved wealthy Chinese account holders in the banks, property agents, metal traders, and even a leading golf club. The case drew global attention due to the enormous illicit funds and the significance of the clients.
How are Singapore Banks Stepping Up Security?
The Monetary Authority of Singapore, in its proceedings, to improve security conducted on-site inspections in the banks involved. Additionally, it has also announced that some of the banks that had the most dealings with the criminals will be receiving fine amounts.
Investigations are still in process by the national regulator. A spokesperson has stated that the regulator will monitor the institutions’ further actions. It expects them to implement appropriate security measures and controls against money laundering and terrorism financing.
Moreover, some of the banks have announced that they are prepping bankers through training sessions to identify red-flag customers. The aforementioned increase in scrutiny is directed toward potential wealthy clients. Through these measures, the banks expect to avoid illicit money flows.
Meanwhile, the Singapore government has arrested 10 Chinese individuals and given prison sentences for nine of them. The final convict awaits sentencing on Monday. Additionally, according to Bloomberg, 17 individuals are currently under investigation.
Recently, the number of overall online crimes has shown a spike as observed by the community. The Hong Kong police force recently issued a warning for spikes in counterfeit banknotes within crypto crimes in 2024. Multiple organizations have reported security breaches in the crypto sector in the past months.
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