The upcoming Formula 1 race in Singapore is the ultimate rendezvous for Asian high finance. This year things are different as a brazen money laundering scandal is dampening the mood.
When employees of Credit Suisse in Singapore arrived at work on Monday, they found the Credit Suisse logo at the entrance to its headquarters on One Raffles Link had been removed and replaced with that of UBS.
The sign that welcomed them read Credit Suisse AG, a UBS Group company.
The reasons are well known. The new situation took some getting used to for many Credit Suisse employees in Singapore. Although most of them aren’t Swiss, they identified with the company founded by Swiss entrepreneur Alfred Escher, which stood for Swiss virtues like stability, security, quality, and reliability for decades.
So the new week began for many Credit Suisse employees under the emblem with the letters U B S. Not surprisingly, the change caused quite a bit of water cooler talk.
The reason for the sudden logo change is the Formula 1 circus, which is being held in Singapore this weekend. Numerous streets in the city have already closed and converted into a race track. Anyone wanting to display the Swiss virtue of punctuality will need to allow extra time to negotiate myriad detours to arrive at their destination on time.
For many years, Credit Suisse in Singapore was privileged to have the Formula 1 track run directly past its offices at One Raffles Link, allowing whizzing cars to be followed from the comfort of conference rooms and offices.
UBS had an attraction for many years. From its headquarters at One Raffles Quay, the 50th floor offered a breathtaking view of Marina Bay, where the race could be followed from a bird’s eye view over long stretches.
In November 2021, UBS gave up its imposing headquarters and is now housed in a long complex of buildings on Penang Road outside Singapore’s banking district. There’s no Formula 1 experience to be had there.
This year, UBS was able to make use of a trick by using its right of hospitality at Credit Suisse and inviting its top clients to the racing spectacle. A few visual adjustments had to be made at short notice to ensure everything goes according to plan.
And so it comes to pass that over the racing weekend, UBS executives will host their top clients on the premises of Credit Suisse, a picture unimaginable until recently.
The subject of Formula 1 has turned into a delicate undertaking for the banks. Where in the past, sponsorship couldn’t be big enough, under the dictates of today’s sustainability requirements, such commitments are considered questionable, if not reprehensible, in the financial industry.
Nevertheless, UBS has supported the Mercedes-AMG Petronas team since 2011 and also the Monaco Grand Prix. For a time, UBS was a main sponsor of Formula One, and with it the nightly race in Singapore. But those days are gone and the UBS logo isn’t as prominent.
Although the race takes place on Sunday evening, Singapore’s government is keen to ensure the weather cooperates. The country’s air force flies regular advance missions to dissipate rain clouds with chemical substances.
This is unconfirmed of course, but taken as «common sense» in Singapore since hours of sunshine haven’t been lacking on Formula 1 weekends for years.
The main topics of conversation in the UBS/Credit Suisse hospitality suites probably won’t be the race but the integration of the two banks, and the money laundering scandal pushing Singapore into a new reality.
A total of ten Chinese nationals were arrested in the city in mid-August 2023, having laundered criminal funds over the years and affording themselves a luxurious lifestyle.
That Singaporean authorities were able to track down the perpetrators, all of whom had second passports from Cyprus, Turkey, and Cambodia, is laudable, but it is surprising how long it took to track them down, and responsible authorities should be asking critical questions. But such things don’t take place in Singapore.
Those arrested are now being tried based on the country’s strict laws and regulations to prevent and combat money laundering and other financial crimes.
That Swiss banks Credit Suisse and Julius Baer are also involved may be regrettable, but it also fits in with recent events, in which Swiss financial institutions are still willing to do business on a knife edge.
Of course, the presumption of innocence applies to all until proven guilty.