Today’s need-to-know stories
Singapore fines nine banks including UBS and Citi in $1.6bn laundering case
Singapore has imposed a total of S$27.45mn ($21.5mn) in penalties on nine financial institutions, including UBS, Citi and Julius Baer, for breaches linked to a S$2bn money-laundering case that has tarnished the city-state’s reputation as a clean and tightly regulated wealth hub.
The case, which involved proceeds from online gambling in Asia, resulted in the convictions of 10 Chinese nationals and the seizure of assets including gold bars and luxury vehicles.
Credit Suisse, now part of UBS, received the largest individual fine at S$5.8mn. UBS was fined S$3mn and Citi S$2.6mn.
The fines represent the second-largest collective penalty ever issued by the Monetary Authority of Singapore, following enforcement actions tied to the 1MDB scandal.
“Like other major international financial centres, Singapore is exposed to money-laundering risks,” said Ho Hern Shin, deputy managing director for financial supervision at the MAS.
“MAS will work closely with financial institutions to promote more consistent implementation of [anti-money laundering] measures. Where there are serious failings by FIs and their employees, MAS will not hesitate to take firm action.”
HSBC sells UK life insurance business
HSBC has agreed to sell its UK life insurance business to insurance group Chesnara for £260mn, as part of its ongoing efforts to streamline operations and boost returns under chief executive Georges Elhedery.
Chesnara said the acquisition of HSBC Life is expected to generate more than £800mn in additional lifetime cash flow, with annual cash generation forecast to exceed £140mn during the first five years.
The deal will be financed through a mix of existing cash reserves, the company’s revolving credit facility and a new share offering to existing shareholders.
The transaction is subject to regulatory approval and is expected to complete in early 2026.
The move is the latest divestment by HSBC as the bank continues to focus on its core operations, particularly in Asia, where it is directing the bulk of its investment.
Earlier this week. BNP Paribas reached an agreement with HSBC to acquire its German custody and depositary business.
BPER raises bid for Popolare di Sondrio to €5.44bn after antitrust approval
Italian lender BPER Banca has increased its bid for rival Popolare di Sondrio to €5.44bn, following conditional approval from Italy’s antitrust authority, the bank announced on Thursday.
The revised offer consists of 1.450 newly issued BPER shares and an additional €1 in cash per Popolare di Sondrio share.
According to an analysis by Reuters, the bid represents a 3 per cent premium on Popolare di Sondrio’s most recent share closing price.
The move comes a day after Italy’s competition regulator AGCM gave conditional clearance for the deal, on the condition that BPER sells six branches — five of its own and one from Popolare di Sondrio — within a 10-month period.
BPER launched its bit for Popolare di Sondrio in February, as part of a wave of takeover attempts in the Italian banking sector including prior moves from UniCredit towards Banco BPM and by state-backed Monte dei Paschi di Siena towards Mediobanca.
Qonto applies for French banking licence in SME expansion
French fintech Qonto has applied for a banking licence with France’s banking regulator as part of its strategy to expand beyond payments into lending, savings and investment services, the company announced on Thursday.
Founded in 2017, Qonto currently provides digital banking and financial management tools for small and medium-sized enterprises. It currently serves over 600,000 business clients across eight European markets, including France, Germany, Italy and Spain.
Qonto has raised more than €600mn in funding from venture capital and angel investors and has set a growth target for 2mn customers by 2030.
“SMEs need comprehensive financing solutions, and while we already serve many customers through partnerships and our pay later service, a banking licence will enable us to expand these capabilities with complete independence,” Qonto chief executive and co-founder Alexandre Prot said in a statement.
Clinton Mora is a reporter for Trending Insurance News. He has previously worked for the Forbes. As a contributor to Trending Insurance News, Clinton covers emerging a wide range of property and casualty insurance related stories.