SINGAPORE (Bloomberg): UBS Group AG is increasing scrutiny of the sources of client money in its fast-growing Asian wealth hubs, pressing some customers into greater disclosures as the Swiss bank seeks to stamp out the risk of further clashes with regulators.
The Zurich-based lender is using Deloitte and KPMG to help screen client documentation, mainly in Singapore but also in Hong Kong, for any signs of illicit activities, including money laundering, people familiar with the matter said.
UBS is taking a more disciplined approach amid tougher rules in some jurisdictions, the people said, asking not to be named as the details are private.
In a number of cases, the queries date back to documents from over a decade ago, some of which were handwritten, the people said.
Singapore authorities have enhanced rules and scrutiny of financial services firms in the past year, following a S$3 billion ($2.3 billion) money-laundering scandal in 2023 that embroiled local and global banks.
Wealth managers are stepping up efforts to monitor clients’ sources of wealth and funds. As more work is now required, hiring of external firms is needed to help the bank’s own compliance teams, the people said.
Representatives for UBS and Deloitte declined to comment. KPMG didn’t respond to an email seeking comment.
UBS Asia Pacific head Iqbal Khan is facing a delicate balancing act in the region as he seeks to accelerate growth while integrating the former business of Credit Suisse and scrubbing out funds stemming from potential criminality.
UBS, which took over Credit Suisse in 2023, has shut thousands of smaller accounts in the region previously offered by its rival.
Deloitte and KPMG have been working with UBS on various other projects, according to one of the people.
Hong Kong and Singapore are becoming an even more important hub for international wealth managers seeking to boost revenue.
Hong Kong’s private wealth under management could nearly double to $2.6 trillion by 2031, according to Bloomberg Intelligence. Hong Kong could also overtake Switzerland as the world’s largest cross-border center this year, the report said.
Khan has long been seen as an internal candidate to replace Chief Executive Officer Sergio Ermotti, who is expected to step down in late 2026 or early 2027, and his chances have been tied to success in his assignment as president of the region, which he took up last year.
Navigating Asia has never been more complex, due to rising geopolitical tensions and competition from well-entrenched rivals such as DBS Group Holdings Ltd. and HSBC Holdings Plc.
Banks in Singapore have been ramping up vetting of some Chinese-born clients with other citizenships following the 2023 scandal. Local and international banks in Singapore were caught up in the high-profile exposure of money-laundering links that put the spotlight on their effectiveness in countering criminality.
The island state imposed S$27.5 million ($21.2 million) in penalties on nine financial firms this year, including a few of the world’s biggest banks, for lapses related to the city’s largest money laundering case.
Credit Suisse’s Singapore branch was slapped with the highest amount of S$5.8 million, and the local units of UBS and Citigroup Inc. were also rapped for breaching anti-money laundering rules.
In September, UBS ended a long-running legal case in France over helping citizens dodge taxes by agreeing to pay €835 million ($974 million) in fines and damages, less than a fifth of the original penalty.
--With assistance from Joyce Koh. -- ©2025 Bloomberg L.P.
