Financial Penalties of $22 Million for Singapore Banks - Shiba Inu's Image Implies Safety
In the ever-evolving world of cryptocurrencies, the Shiba Inu project is making waves with its innovative approach to Anti-Money Laundering (AML) detection. The Shib Magazine and The Shib Daily, the official media and publications of the Shiba Inu cryptocurrency project, have announced the planned integration of Fully Homomorphic Encryption (FHE) technology.
This technology could revolutionise the way decentralised applications (dApps) in the Shiba Inu ecosystem manage compliance checks and transaction monitoring. Unlike traditional methods, FHE allows data to be analysed while still encrypted, enabling suspicious activity to be flagged without exposing user identities or sensitive information.
The use of FHE is particularly significant in the context of cryptocurrencies, which have been criticised for making it easier for illicit funds to be moved and obscured. This innovation aims to improve AML effectiveness in decentralised and privacy-centric crypto environments.
Meanwhile, traditional financial institutions have faced significant penalties for AML/CFT compliance failures. In Singapore, for instance, nine financial institutions were fined a total of US$21.55 million by the Monetary Authority of Singapore (MAS) for such shortcomings. These fines were linked to a high-profile money laundering case, reflecting the strict regulatory enforcement and accountability measures on traditional financial institutions.
Dr Rand Hindi, being interviewed about Zama's vision for Shiba Inu privacy through FHE, emphasised that by using FHE, Shiba Inu aims to help regulators and developers detect illicit financial behaviour more effectively, while still protecting user confidentiality on-chain.
The MAS determined penalties based on factors such as each institution's exposure to persons of interest, the number of regulatory violations, and the severity of deficiencies in their AML/CFT frameworks. Institutions like Credit Suisse Singapore Branch, United Overseas Bank Limited (UOB), and UBS AG's Singapore Branch were among those fined, with Credit Suisse receiving the largest fine of approximately US$4.29 million.
As the crypto landscape continues to evolve, it's clear that the Shiba Inu project is leading the charge in adopting advanced technologies to combat money laundering. The integration of FHE technology represents a promising step towards enhancing AML detection in the crypto space while preserving user privacy.
References: [1] The Shib Magazine and The Shib Daily, official media and publications of the Shiba Inu cryptocurrency project. [2] MAS (2025). Press Release: MAS fines nine financial institutions for AML/CFT compliance failures. [online] Available at: https://www.mas.gov.sg/news/press-releases/2025/mas-fines-nine-financial-institutions-for-aml-cft-compliance-failures [3] MAS (2025). Press Release: MAS imposes penalties totalling S$27.45 million on Singapore banks for AML/CFT compliance failures. [online] Available at: https://www.mas.gov.sg/news/press-releases/2025/mas-imposes-penalties-totalling-s2745-million-on-singapore-banks-for-aml-cft-compliance-failures [4] $TREAT Debuts, article about the first FHE token on mainnet. [5] Dr Rand Hindi, interview about Zama's vision for Shiba Inu privacy through FHE.
- The Shib Magazine, a general-news source about the Shiba Inu cryptocurrency project, reported on the planned integration of FHE technology to boost Anti-Money Laundering (AML) effectiveness in the decentralized Shiba Inu ecosystem, while preserving user privacy.
- In the business realm of finance, traditional financial institutions have faced severe regulatory penalties for AML/CFT compliance failures, such as the nine institutions in Singapore fined US$21.55 million for such shortcomings, which were linked to a high-profile money laundering case.
- As technology advances, the Shiba Inu project, known for its innovative approach to AML detection in the cryptocurrency domain, is using FHE to facilitate the detection of illicit financial behavior, contributing to the regulation of crypto-based crime and justice.
