SINGAPORE - In the past five years, the Monetary Authority of Singapore (MAS) penalised 17 financial institutions for breaching Singapore’s laws against money laundering and terrorism financing.

Senior Minister Tharman Shanmugaratnam said in a written answer on Wednesday that there had been 20 investigations from June 1, 2018, to June 23, 2023. He was responding to a parliamentary question from MP Ang Wei Neng (West Coast GRC).

He also said the new Cosmic platform announced in April should be ready by the second half of 2024. Companies on the platform can share information about suspicious customers, and report dubious behaviour earlier and with greater accuracy to the authorities.

Regarding Singapore’s anti-money laundering and anti-terrorism financing rules, Mr Tharman said MAS not only has strict requirements in line with international standards, but it also actively supervises institutions to ensure they adhere to the requirements and expectations.

Among the 17 firms penalised, one had its licence revoked while 14 were fined. A further two financial institutions were issued reprimands. Among the 14 fined were DBS Bank, OCBC Bank and Citibank Singapore, along with insurer Swiss Life Singapore. They had been implicated in the Wirecard scandal and were fined $3.8 million in June for failing to comply with the rules, and were also deemed to have inadequate controls in place.

Mr Tharman said that even before the Wirecard scandal, MAS had checked for the misuse of legal entities, such as shell companies, which was a risk that arose in the Wirecard-related cases.

He added that the firms that MAS inspected were already strengthening their controls as a consequence of the supervisory interventions.

Mr Tharman stressed that the need for active collaboration among financial institutions, MAS and law enforcement was essential in the fight against financial crime. 

MAS and the Commercial Affairs Department work closely with key firms to share analyses of emerging risks, as well as information on specific cases. The senior minister said: “This partnership has helped identify suspicious accounts and activities, and has resulted in investigations.”