Singapore is initiating intense regulations across major banks and the cryptocurrency industry as it concludes the largest money laundering crackdown in its history. This case involves illegal fund circulation of approximately 3 billion Singapore dollars (about 3.192 trillion won) detected in 2023, with the Monetary Authority of Singapore (MAS) imposing total fines of 27.5 million Singapore dollars (about 2.79 billion won) on nine global financial institutions.
The identified institutions include world-renowned banks such as Credit Suisse, UBS, Citibank, UOB, Julius Baer, LGT Bank, and the Singapore asset management firm Blue Ocean. MAS pointed out that these institutions failed to properly implement anti-money laundering (AML) systems, with Credit Suisse receiving the largest fine of 5.8 million Singapore dollars (about 5.8 billion won).
The investigation results were revealed after a large-scale police crackdown in August 2023, during which numerous high-end properties were seized across Singapore, and assets worth billions of won in cash and cryptocurrencies were confiscated. Ten Chinese nationals were arrested on organized crime charges, sentenced to up to 17 months in prison, and subsequently deported.
Interestingly, cryptocurrencies played a crucial role in this case. With some seized assets confirmed to be digital assets like Bitcoin (BTC), regulatory pressure is spreading to cryptocurrency service providers. Accordingly, MAS has significantly strengthened digital asset regulations and is introducing comprehensive supervision considering these companies' impact on international financial networks.
According to new regulations implemented since June, cryptocurrency companies providing overseas services must register a license under the Financial Services and Markets Act (FSMA) by June 30, 2025, with personal investor credit card usage and rewards prohibited. Additionally, transactions exceeding 1,500 Singapore dollars will require personal verification under the 'Travel Rule', and decentralized app front-ends and token-based wallet services are also included in the regulatory scope.
MAS is emphasizing the establishment of a "trust-based financial system" through this case. Particularly, they suggest that the cryptocurrency industry is no longer exempt and that strong regulations encompassing not just financial institutions but blockchain-related platforms are necessary.
Singapore's bold move is interpreted not as mere punishment, but as a strategic measure to maintain its reputation as a global financial hub and strengthen its AML system. As digital asset proliferation diversifies money laundering methods, the global financial industry is closely watching Singapore's future steps to create a more transparent and trustworthy market environment.
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