Atrium Asia Fined $1.9m in Banking and Finance Gaffes by MAS

Monetary Authority of Singapore fined Atrium Asia Investment Management $1.9 mln for culpable breaches of AML/CFT.

Singapore’s monetary authority has fined Atrium Asia Investment Management $1.9 million after the regulator found its AML/CTF rules breaches in the banking and finance sector were serious.

Aside from the penalty, MAS also reprimanded the CEO of AAIM, Mintarja Oei, for letting the regulation slide. An investigation found that AAIM broke AML/CFT requirements from June 2015 to October 2020, with concerns about the way the company was overseeing activity in the banking and finance industry.

The failures by the firm to detect and report suspicious transactions were not addressed through sufficiently strong procedures, failing to verify several large transactions with third parties. In addition, AAIM failed to assess and mitigate money laundering and terrorism financing (ML/TF) risks to its clients — notwithstanding the failure to identify tax risks and politically exposed persons (PEPs).

In addition, AAIM did not keep current records of beneficial owners that brought about a complete failure on the bank and finance landscape with respect to AML/CFT standards.

Although admitting that AAIM has already taken steps to remedy the deficiencies found, MAS also said that commitment to institutionalizing the fiscal exercise within the banking and finance sector is forthcoming. Great length should be put into tightening AML and CFT measures to safeguard Singapore’s banking and finance system as this case shows.