Singapore Intensifies Fight Against Money-Laundering: Private Banks Urged to Lead

Singapore is ramping up its efforts to combat money-laundering with the creation of a new surveillance unit and data tracking, but the responsibility falls on private banks to lead the charge, according to the chief financial regulator.

Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), emphasized the importance of financial institutions setting the right moral tone to help fight against illicit fund flows. “Boards and senior management in particular must send a clear signal that profits do not come before values and ethics, and compensation structures must motivate not only high performance but also right conduct,” Menon stated during a forum with foreign correspondents.

While Menon did not directly address the 1MDB scandal in neighboring Malaysia, which has implicated banks based in Singapore and tarnished the city-state’s reputation, he highlighted the need for more robust risk assessments of financial institutions’ activities. The scandal involving 1MDB, a state investment fund launched by Malaysian Prime Minister Najib Razak, has been marred by allegations of embezzlement and money-laundering on a massive scale.

Singapore has taken legal action against bankers linked to the scandal and has seized nearly $180 million in assets through its investigations into suspected fraud and money-laundering related to 1MDB. The MAS has also launched a specialized unit to combat money laundering and will utilize technology to monitor illicit fund flows and transactions.

With the financial sector playing a crucial role in the fight against money-laundering, Menon stressed the importance of private banks taking the lead in upholding ethical standards and implementing effective controls to prevent illicit activities. As Singapore strengthens its efforts to combat financial crimes, the focus remains on ensuring transparency and integrity within the financial industry.