MAS to review Credit Suisse amid Singapore money laundering scandal
The Monetary Authority of Singapore (MAS) announced its intention to conduct an on-site review of Credit Suisse Group AG. The decision comes in the wake of a far-reaching financial scandal, in which at least one customer of the bank has been charged with money laundering.
The review aims to assess the bank’s handling and monitoring of wealthy clients.
The local Credit Suisse unit is among several banks that the MAS will inspect. The regulator’s officials are set to review documents and interview staff members within a matter of weeks, according to multiple anonymous sources. The news of the impending investigation has not been made public.
This review signifies the gravity of the scandal, which has implicated at least ten banks within Singapore’s financial centre. The alleged money laundering operation is reported to have seized assets exceeding S$2.8 billion (64.4 billion baht, US$1.95 billion), ranging from cash to jewels, from a group of individuals of Chinese origin.
The MAS’s upcoming visit is not part of its regular bank engagements. It hints at potential issues with the banks’ considerable exposure to the accused individuals and their overall client vetting processes.
Banks, including Credit Suisse, have established relationships with the accused or their companies. The largest known account held by one suspect, Vang Shuiming, amounts to S$92 million (2.208 billion baht) at Credit Suisse.
Bank inspections
Credit Suisse declined to comment on the matter. A MAS spokesperson directed Bloomberg News to the comments made by Minister of State Alvin Tan in Parliament this month. Tan stated that the regulator is undertaking supervisory reviews and inspections of banks with a significant link to the case.
Tan expressed concern that financial assets constituted the majority of the seized assets, reported Bangkok Post.
Vang Shuiming also held accounts with other banks, including Bank Julius Baer, where he had S$33 million, and United Overseas Bank Ltd and RHB Bank Bhd’s local unit, according to police affidavits. Vang faces additional charges, including the forgery of a bank document to deceive Citibank Singapore Ltd.
At present, it is unclear which other banks will be subjected to review by the MAS. The investigations will explore the internal red flags raised and the timing of the filing of suspicious transaction reports.
For Credit Suisse, this review will add to the challenges faced by its new parent company, UBS Group AG, as it endeavours to integrate thousands of employees from its former competitor globally.
In 2017, the MAS conducted a similar review of Credit Suisse following its involvement in the 1MDB saga, Malaysia’s largest corruption case, resulting in a fine of S$700,000 for the bank.
Client security
Since the scandal broke in August, banks in Singapore have increased their scrutiny of clients, particularly those of Chinese origin with multiple passports.
Authorities are also investigating the possible links between one or more of the accused and single-family offices with incentives and will tighten regulations where necessary.
The money laundering investigations began in 2021 following the filing of suspicious transaction reports by banks and companies. These reports alerted authorities to suspicious activities attempted through the country’s financial system.
