Integrity Shocks: 1MDB and the 2023 Money Laundering Case: summary

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The diversion of more than 4.5 billion US dollars from the Malaysian fund 1MDB used private banks in Singapore, whose relationship managers moved large sums for Jho Low and his associates despite obvious warning signs. MAS closed the Singapore operations of BSI and Falcon in 2016, penalised eight banks a total of 29.1 million dollars and barred several bankers, some for life, while the courts convicted individual bankers of money laundering, forgery, cheating and failure to report. The case of August 2023 exposed a network of foreign nationals who used companies, work passes, bank accounts and property to place more than three billion dollars of suspected criminal proceeds in Singapore, which ended with ten convictions and the forfeiture or surrender of about 2.8 billion dollars. The Inter-Ministerial Committee of 2023 and 2024, the legislation of 2024 and the penalties of 27.45 million dollars imposed on nine institutions in July 2025 placed the corroboration of the source of wealth at the centre of the regime. Both cases confirm that Singapore treats its reputation as a regulatory objective, while the FATF evaluation of 2026 suggests that its defences, though tested, have held.

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of October 2026.

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Dr Alexander Ressos, TEP

Of Counsel, KGP Legal LLC

I am Of Counsel with KGP Legal LLC in Singapore, where I work with a global client base of successful entrepreneurs and their families, independent asset managers, commodity trading houses and other commercial clients. I am a German and Swiss attorney-at-law, also admitted as a solicitor in England & Wales and in Hong Kong. I divide my time between Zug in Switzerland, Singapore and Hong Kong. Since 2017 I have advised international clients on more than 700 crypto and digital asset projects. I also have extensive experience in cross-border litigation and arbitration in Singapore, Hong Kong and other markets in South-East Asia and Greater China.

I operate across the key financial centres in South-East Asia, the Middle East and Switzerland, with a particular focus on asset protection, international tax and estate planning, as well as trusts, company administration and other fiduciary services. My philosophy is to serve as a trusted advisor working closely with my clients and to help them achieve their commercial objectives.

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KGP Legal LLC is a medium-sized law firm in Singapore that is capable of providing the full range of legal services and corporate administration work. Please contact me directly at [email protected] if you need any further information.

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SingaporeIQ is edited by Dr Alexander Ressos, an international business lawyer with more than 15 years of local experience in Singapore as a permanent resident, a Singapore registered foreign lawyer and managing partner of a Singapore foreign law practice. In addition to significant experience in cross-border investments and transactions, UHNWI private client work and sanctions/export controls, Dr Ressos has extensive experience in cross-border business and in crypto and digital-asset projects in Singapore, drawn from more than 700 projects since 2017.

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