DBS Sets Aside $74 Million for Exposure to Money Laundering Scandal

November 6, 2023

DBS Group, Singapore’s leading financial institution, is facing exposure of almost $74 million (S$100 million) for its involvement in Singapore’s multi-billion money laundering scandal, primarily from the financing properties of those arrested, reported Bloomberg.

In August 2022, Singapore police took 10 Foreign nationals into custody, followed by the seizure of assets worth $2 billion approximately. Further investigations revealed that the confiscated assets also included luxury items and were suspected to be illicit gains from fraudulent activities and online gambling executed overseas.

The earliest investigations of the scandal didn’t reveal the names of banks involved later certain banks such as Credit Suisse, Malaysia’s CIMB Bank, Citigroup’s local subsidiary, and Deutsche were reported to be likely involved in money laundering. Recently, DBS has come under increased scrutiny by Singapore authorities.

It seems that due diligence carried out by the financial institutions played a role in exposing the money laundering scandal. Singapore’s MAS plans to investigate whether Credit Suisse and other banks are managing surveillance of affluent clients.

The money laundering scandal has sent shockwaves throughout the country, underscoring the need for regulatory measures and enhanced scrutiny. Apart from the financial sector, the money laundering scandal has embroiled real estate agents, jewelers, and even golf clubs, challenging the effectiveness of anti-money laundering regulations in a major global financial hub.

The authorities have emphasized careful monitoring of business dealings and transactions to identify possible suspicious activities in the financial sector and other industries. Consequently, various sectors are intensifying anti-money laundering regulations to combat such issues.