Singapore Regulator Fines Nine Financial Institutions Over AML Violations Linked to Gambling
Massive Fines Imposed on Financial Institutions for AML Shortcomings
Singapore’s Monetary Authority (MAS) has fined nine financial organizations a combined total of S$27.45 million (approximately $21.45 million USD) due to lapses in their anti-money laundering (AML) measures related to one of the largest money laundering investigations in the country.
Weak AML Controls and Oversight Failures Identified
Despite having foundational AML policies, these institutions failed to adequately implement and uphold the regulatory requirements under Singapore’s AML and Countering the Financing of Terrorism (CFT) frameworks. Inspections carried out between early 2023 and early 2025 uncovered significant weaknesses, such as inconsistent customer due diligence processes, insufficient risk assessments, inadequate verification of clients’ sources of wealth, and poor transaction monitoring.
Red flags such as unexplained wealth and large, unusual transactions that did not align with customer profiles were often ignored or insufficiently investigated. In eight of the nine cases, suspicious activity reports were either not properly followed up or did not lead to effective risk mitigation actions.
Individual Accountability and Prohibition Orders
The regulator has also taken disciplinary action against certain individuals. Four senior executives and relationship managers from Blue Ocean Invest received prohibition orders: CEO Tsao Chung-Yi was banned for six years, COO Wong Xuan Ling for five years, and two others, Henry Hsia and Deng Xixi, for three years each. These individuals failed to enforce proper AML controls, especially concerning high-risk clients linked to Philippine Offshore Gaming Operators (POGOs).
Additional formal reprimands were issued to senior managers at Trident Trust and former heads of UOB’s privilege banking division. Moreover, nine relationship managers and supervisors faced private warnings for less severe breaches.
Strengthening AML Standards and Ongoing Enforcement
MAS has updated its supervisory guidelines, encouraging financial institutions to elevate their AML practices to align with top global standards. Enhanced risk-based measures are now expected, including more rigorous source-of-wealth verification and improved transaction oversight. The regulator has warned that further actions may be taken against individuals depending on court case outcomes still underway.
Ho Hern Shin, deputy managing director of financial supervision at MAS, highlighted that Singapore, like other major financial hubs, remains vulnerable to money laundering risks. She stressed that proactive vigilance by financial institutions and their staff is essential to curbing these threats effectively.