ACTIONS AGAINST INDIVIDUALS
MAS also issued prohibition orders against four individuals from Blue Ocean Invest:
- Mr Tsao Chung-yi, CEO and executive director, received a six-year prohibition order with effect from Aug 1
- Ms Wong Xuan Ling, COO, received a five-year prohibition order with effect from Aug 1
- Mr Hsia Lun Wei @ Henry Hsia, executive director and relationship manager, received a three-year prohibition order with effect from Jun 30
- Ms Deng Xixi, former relationship manager, received a three-year prohibition order with effect from Jun 30
They are forbidden from providing regulated financial services or taking part in the management of financial institutions for the duration of the orders.
MAS said that Mr Tsao and Ms Wong failed to ensure Blue Ocean Invest’s AML/CFT controls kept pace with the significant growth in its business in the three years since the firm was set up.
These included gaps in source of wealth corroboration and customer due diligence.
All four individuals also failed to raise red flags when they had information that should raise suspicion, and failed to perform enhanced customer due diligence for multiple persons of interest.
MAS further reprimanded five individuals from Trident Trust and UOB:
- Mr Sean Andrew Coughlan, managing director, executive director and resident manager, Trident Trust
- Mr Tan Ho Kiat, COO, executive director and head of compliance, Trident Trust
- Ms Kek Yen Leng, executive director, head of trust administration and resident manager, Trident Trust
- Mr Ang Sze Hee Alvin, former team head of group retail privilege banking, UOB
- Mr Tan Sheng Rong Leonard, former team head of group retail privilege banking, UOB
Mr Coughlan and Mr Tan failed to ensure Trident Trust’s policies provided sufficient practical guidance on how to establish customers’ source of wealth, said MAS.
All three Trident Trust executives also failed to detect or adequately assess multiple deficiencies in customers’ source of wealth corroboration.
Mr Ang and Mr Tan failed to conduct or ensure proper due diligence or follow-up on suspicious transaction reports for several persons of interest at UOB, said MAS.
The regulator also privately reprimanded another nine relationship managers and relationship management supervisors for more limited lapses. MAS did not provide their names to the media.
MAS said it reviewed the conduct of a larger number of employees of the financial institutions involved, but did not find evidence of significant lapses by most of them.
However, it may take action against “a few remaining individuals” after ongoing court proceedings or investigations conclude.
“Like other major international financial centres, Singapore is exposed to money laundering risks. The vigilance of our financial institutions and their employees is critical in mitigating such risks,” said MAS’ deputy managing director for financial supervision Ms Ho Hern Shin.
“MAS will work closely with financial institutions to promote more consistent implementation of AML/CFT measures. Where there are serious failings by financial institutions and their employees, MAS will not hesitate to take firm action.”
A UBS spokesperson said: “We acknowledge MAS’ findings. We have cooperated fully with the authorities to resolve this issue and will continue to work together closely to safeguard Singapore’s financial industry.”
The spokesperson was responding to queries on both Credit Suisse and UBS.
A UOB spokesperson said the bank accepted MAS’ findings and has stepped up its transaction monitoring and customer due diligence processes over the past two years, after a comprehensive internal review.
UOB said it also made significant investments in technology and other resources to enhance internal risk management standards and capabilities, and continued to enhance employee training.
“We have conducted a thorough assessment of the facts and circumstances surrounding the issues and staff involved, and taken appropriate actions to address accountability and discipline,” said the spokesperson.
Credit Suisse, UBS and UOB were also penalised in the 1MDB case.
Asked why such breaches continued after it was taken to task for 1MDB, the UOB spokesperson said the bank has strengthened its operational effectiveness to ensure its anti-money laundering frameworks and controls are “consistently and rigorously applied”.
UOB Kay Hian noted that the breaches occurred between 2019 and 2023. The firm said it has been working closely with MAS and taken steps to strengthen key anti-money laundering related controls.
“All remediation actions have since been completed. New processes and safeguards have also been implemented to prevent recurrence. UOB Kay Hian continues to prioritise full regulatory compliance, supported by close oversight from the board and management team,” it said.
A Citi Singapore spokesperson said the bank has strengthened its client onboarding and monitoring processes, and was committed to the highest standard of governance and controls to prevent money laundering.
Julius Baer said it has taken concrete steps to strengthen its processes and anti-money laundering framework, and remained “firmly committed to upholding the high standards of the Singapore financial centre”.
Blue Ocean Invest said it acknowledged MAS’ findings, has fully cooperated with authorities during the investigation, and has implemented measures to enhance internal policies and procedures.
A Trident Trust spokesperson said it cooperated fully with MAS throughout the inspection and has implemented a detailed remediation plan to address the breaches.
A spokesperson for LGT Bank acknowledged MAS’ findings and said the bank remained strongly committed to the fight against money laundering and safeguarding the integrity of Singapore’s financial system.
