Singapore Banks Under Scrutiny Sequel To Crypto Related Crimes

Singapore’s Banking System Faces Scrutiny After $1.1 Billion Crypto Money Laundering Scandal

Singapore’s banking system is under intense scrutiny following a major crypto-related money laundering scandal. On June 15, 2024, authorities revealed that they had seized over $1.1 billion from accounts linked to 10 convicted individuals and 17 suspects who remain at large. The seized assets included cash, cryptocurrencies, real estate, jewelry, and luxury bags.

Vulnerabilities in Singapore’s Financial System

This scandal has exposed significant vulnerabilities within Singapore’s financial system. As a result, the city-state is tightening regulations on family offices and hedge funds. Additionally, there has been an increase in the closure of dormant firms to combat money laundering risks.

Singapore is addressing money laundering risks within its banking sector more seriously than ever. The government recently released an extensive 126-page report analyzing these risks. This effort is part of Singapore’s aim to attract ultra-wealthy individuals and position itself as a global financial hub.

Money Laundering Techniques Uncovered

The report detailed various money laundering techniques used by criminals. These techniques include using bank accounts, payment services, shell companies, and other complex structures. Banks were identified as particularly vulnerable due to the widespread use of online financial services, which facilitate easy electronic transfers.

The seized assets included cash, cryptocurrencies, real estate, and luxury goods such as precious stones, jewelry, watches, and high-end bags. This scandal has prompted Singapore to demand more information from family offices and hedge funds operating in the country.

Regulatory Changes by MAS

To combat these risks, the Monetary Authority of Singapore (MAS) has made significant amendments to the Payment Services Act. The revised Act, effective from April 4, 2024, broadens its scope to cover digital payment tokens (DPTs) and bolster user protections. The new regulations grant MAS oversight over DPT custodial services, account transfers, and cross-border money transfers.

The amendments also empower MAS to enforce stringent anti-money laundering and counter-terrorism financing requirements on DPT service providers. Companies engaged in DPT activities must now notify MAS within 30 days and apply for a license within six months to continue operations under transitional arrangements.

Impact on Singapore’s Crypto Landscape

These regulatory changes bring much-needed clarity and accountability to Singapore’s crypto landscape. By mandating adherence to strict financial crime prevention measures, MAS enhances the integrity of the sector. The new rules mitigate risks associated with illicit activities while fostering trust among investors and businesses, cultivating a more secure and transparent financial environment.


The $1.1 billion money laundering scandal has highlighted significant vulnerabilities within Singapore’s financial system. In response, Singapore is tightening regulations and enhancing oversight to combat financial crimes. The recent regulatory changes by MAS aim to bring clarity and accountability to the crypto sector, fostering a more secure financial environment. By addressing these challenges head-on, Singapore is working to maintain its reputation as a global financial hub while protecting against illicit activities.

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