Citi, DBS, other banks step up scrutiny of high-net-worth clients after Singapore's biggest money laundering case

Citigroup Inc., DBS Group Holdings Ltd. and other banks caught up in Singapore’s biggest money-laundering scandal are stepping up scrutiny of their high-net-worth clients and potential customers to avoid illicit money inflows, people familiar with the matter said. Private bankers at several institutions are also receiving additional training to help them spot tricks used by criminals to obscure their backgrounds and sources of funds. The moves are voluntary, a sign that institutions are trying to plug gaps in screening clients. The Monetary Authority of Singapore (MAS) recently completed on-site inspections of some banks involved in the case. Banks that have dealt most with criminals (through deposit accounts, loans and other financial services) are expected to face fines and other punitive measures from the financial regulator after the review is completed, some of the people said. In response to questions from Bloomberg News, an MAS spokesman said the agency will assess whether financial institutions have implemented adequate and appropriate controls on money laundering and terrorism financing, and will take action if the requirements are not met, as in past cases, and the supervisory work is ongoing. After the money laundering case was exposed in August 2023, the Singapore government set up an inter-ministerial committee to review its anti-money laundering system and strengthen defenses in industries such as financial institutions, real estate agencies and precious metals traders. (The Edge Malaysia) Last August, Singapore cracked the largest money laundering case in recent years, and 10 people including Su Baolin, the founder of Xinbao Investment, were arrested. The 10 foreigners arrested in this case were suspected of crimes such as forging documents and money laundering. The total value of the property involved was about 1 billion Singapore dollars. It was initially determined that the 10 people were originally from Fujian Province, China.