MAS Fines Ten Banks $21 Million for Breaching Anti-Money Laundering Rules
- A number of financial entities were found guilty of involvement in Malaysia’s state fund scandal.
Singapore’s central bank has announced having fined both Credit Suisse and United Overseas Bank (UOB) a total of S$1.6 million ($1.15 million). The banks were found guilty of breaches of anti-money laundering rules in transactions that were connected to the Malaysian state fund 1MDB scandal.
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The Monetary Authority of Singapore (MAS) fined Credit Suisse S$700,000 ($504,347) and UOB S$900,000 ($648,437) following the conclusion of a two year long investigation which revealed several control lapses and the aforementioned anti-money laundering related breaches. The MAS has fined eight additional banks for similar transgressions, collecting from them a total of S$29.1 million ($21 million).
Along with the fines, Singapore also shut down the local branches of BSI Bank and Flacon Bank for weaknesses in money laundering control and inappropriate conduct by the senior management. Additionally, millions of dollars were frozen in their bank accounts, and private bankers were charged.
The announcement stated that though it had not detected any prevalent control weaknesses, it did find that the banks were lax "...in conducting due diligence on customers and inadequate scrutiny of customers' transactions and activities.”
Malaysia’s Prime Minister Najib Razak’s 1MDB state fund, of which he was the chairman of the advisory board, was the subject of six money laundering investigations that included Switzerland, the United States of America, and Singapore itself. The former chairman denied his involvement in any wrongdoing.
UOB stated its acceptance of the findings given by the MAS investigation: "We have instituted measures to address the areas of concern, including enhancing our training programme to raise risk and control awareness among our staff.”
Recently, Finance Magnates covered the MAS having signed an agreement with two French regulators the Autorité de Contrôle Prudentiel et de Résolution (ACPR) and the Autorité des Marchés Financiers (AMF). The contract is said to enhance the two countries' relations with an emphasis on Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term and fintech related symbiosis.
Singapore’s central bank has announced having fined both Credit Suisse and United Overseas Bank (UOB) a total of S$1.6 million ($1.15 million). The banks were found guilty of breaches of anti-money laundering rules in transactions that were connected to the Malaysian state fund 1MDB scandal.
The London Summit 2017 is coming, get involved!
The Monetary Authority of Singapore (MAS) fined Credit Suisse S$700,000 ($504,347) and UOB S$900,000 ($648,437) following the conclusion of a two year long investigation which revealed several control lapses and the aforementioned anti-money laundering related breaches. The MAS has fined eight additional banks for similar transgressions, collecting from them a total of S$29.1 million ($21 million).
Along with the fines, Singapore also shut down the local branches of BSI Bank and Flacon Bank for weaknesses in money laundering control and inappropriate conduct by the senior management. Additionally, millions of dollars were frozen in their bank accounts, and private bankers were charged.
The announcement stated that though it had not detected any prevalent control weaknesses, it did find that the banks were lax "...in conducting due diligence on customers and inadequate scrutiny of customers' transactions and activities.”
Malaysia’s Prime Minister Najib Razak’s 1MDB state fund, of which he was the chairman of the advisory board, was the subject of six money laundering investigations that included Switzerland, the United States of America, and Singapore itself. The former chairman denied his involvement in any wrongdoing.
UOB stated its acceptance of the findings given by the MAS investigation: "We have instituted measures to address the areas of concern, including enhancing our training programme to raise risk and control awareness among our staff.”
Recently, Finance Magnates covered the MAS having signed an agreement with two French regulators the Autorité de Contrôle Prudentiel et de Résolution (ACPR) and the Autorité des Marchés Financiers (AMF). The contract is said to enhance the two countries' relations with an emphasis on Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term and fintech related symbiosis.