Singapore’s financial watchdog, the Monetary Authority of Singapore (MAS), has imposed S$27.5 million ($21.5 million) in penalties on nine financial institutions, including UBS (UBS), Citi (C), and Julius Baer (JBAXY). The firms have been charged with anti-money laundering (AML) control failures linked to the city-state’s largest money laundering case.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The MAS confirmed that these penalties wrap up a two-year review of a money laundering case that became public in August 2023. Authorities in Singapore seized nearly S$3 billion in assets, including cash, real estate, and cryptocurrencies, tied to the scandal.
Penalties Imposed
Specifically, Credit Suisse’s Singapore branch (now part of UBS) got the biggest fine of S$5.8 million. Also, UBS and Citigroup were penalized S$3 million and S$2.6 million, respectively. Further, the firms are currently addressing the deficiencies in AML controls and will be closely watched.
Importantly, this is Singapore’s second-largest enforcement action, trailing only the S$29.1 million in penalties handed out during the 1MDB scandal.
Global Scrutiny Rises Against Financial Firms
In 2025, banks are facing stricter scrutiny globally as regulators crack down on money laundering. Further, the European Union and U.S. authorities have tightened rules on who owns assets, how crypto is handled, and the enforcement of sanctions.
As a result, banks are using real-time tracking and AI tools to spot suspicious activity more quickly and accurately than before.
Which Bank Stock Is Best to Buy Now?
Among the above-mentioned banks, UBS and Citi both have a Moderate Buy consensus rating. Analysts see over 9% upside in UBS stock and 4.1% in Citi.
