UBS joins Chinese lenders drawn into $2B money laundering probe

Alleged gambling ring arrests have sparked police investigation into where the profits were stored.

UBS Group AG and two major Chinese lenders have been drawn into one of Singapore’s largest money laundering cases, as a police affidavit showed that an alleged fugitive involved had stashed millions at the banks.

Wang Dehai, who is also wanted in China for illegal online gambling activities, kept HK$53 million ($6.8 million) and $500,000 with UBS, Industrial & Commercial Bank of China Ltd and Bank of China Ltd. in Hong Kong, according to a court document seen by Bloomberg News after a bail hearing for Wang Wednesday.

UBS, ICBC and Bank of China did not immediately respond to Bloomberg News’ request for comment.

Wang, 34, was arrested in Singapore on Aug. 15 as part of a nationwide crackdown on an alleged gambling ring that saw nine other individuals originating from China also being remanded. Over $2 billion of assets from cash to jewelry have been seized from the group.

More than 10 banks have been ensnared for their ties with the alleged money launderers, or their businesses in Singapore. The local unit of Credit Suisse Group AG, which was taken over by UBS earlier this year, will be inspected by the Monetary Authority of Singapore after another suspect Vang Shuiming was found to hold S$92 million ($67 million) at the bank, Bloomberg News reported.