MAS-licensed trust company fined $300,000 for breaching anti-money laundering rules
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The breaches came to light during an inspection by MAS of the company’s anti-money laundering and countering the financing of terrorism framework.
ST PHOTO: LIM YAOHUI
SINGAPORE – An independent trust company backed by a local law firm was fined on May 25 after it was found to have breached anti-money laundering requirements.
Padang Trust Singapore, a company licensed by the Monetary Authority of Singapore (MAS), was found to have failed to inquire into unusual transactions that had no apparent economic or lawful purpose.
It was handed a $300,000 composition penalty for the breaches.
The breaches came to light during an inspection by the central bank of the company’s anti-money laundering and countering the financing of terrorism (AML/CFT) framework.
MAS told The Straits Times that it regularly conducts inspections of financial institutions as part of its supervisory remit, and that the breaches were found during such an inspection.
Padang Trust had also failed to promptly file suspicious transaction reports even when there were grounds to do so, MAS said.
“These breaches stem from inadequate AML/CFT controls in Padang Trust, including the lack of scrutiny of unusual transactions and poor staff awareness of ML/TF (money laundering and terrorism financing) risks and red flag scenarios,” the central bank said.
The company was incorporated in 2007 by the founding partners of law firm Hin Tat Augustine & Partners.
It provides wealth planning and management services to wealthy individuals and families, including the setting up of trusts and administration of estates.
In response to ST’s queries, Padang Trust executive director and resident manager Darren Shi Weiming said the company has since terminated the client relationship behind the unusual transactions.
Shi said that as a trustee, the company was bound by legislation and regulations from disclosing further details about its clients.
Beyond that, he said the company has taken action internally.
“We have buttressed our compliance function by increasing our personnel hire and by investing in client management systems… The entire management team having oversight of the matters in question has been changed and the personnel involved are no longer with our organisation,” he said.
Licensed trust companies found to have breached MAS’ anti-money laundering regulations can be fined up to $1 million for each charge.
