Singapore seizes $2bn in money laundering case

Singapore officials say they expect more arrests and seizures as the Asian financial hub investigates one of its biggest money-laundering cases, with assets seized now valued at S$2.8bn ($2bn).

Raids in mid-August by authorities of the city state known for its low crime rate led to arrests of 10 foreigners and seizure of S$1bn in luxury properties, cars, gold bars, designer handbags and jewellery.

“This case is a reminder that even the most stringent preventive measures can be circumvented by determined criminals,” Josephine Teo, the second minister for home affairs, told parliament on Tuesday.

The government will set up an interministerial panel to review the anti-money laundering regime, reflecting lessons drawn from the case, she said.

Teo was one of three cabinet ministers responding to questions on the case filed by MPs.

Indranee Rajah, the second minister for finance, will chair the inter-ministerial committee comprising political office holders from the central bank and the home affairs, law, manpower and trade ministries. They will review four areas: preventing abuses of corporate structures; getting financial institutions to collaborate with each other and authorities; getting third party players such as real estate agents to guard against money laundering; and improving detection capabilities.

The government said it is inspecting financial institutions suspected of involvement in the case and will launch enforcement action against any of them and their staff if they are found to have breached central bank requirements.

Agencies are also reviewing processes that include the central bank’s approval for family offices to get tax incentives, and to consider regulating high value assets such as luxury cars and bags.

But Teo said that any changes should not “end up unduly inconveniencing legitimate businesses and customers”.

The case was on the radar of police since 2021, after the filing of suspicious transaction reports by financial institutions, she said.

She dismissed as “completely untrue” media speculation that the operation was carried out at China’s behest.

“We started investigations because we suspected that offences had been committed in Singapore,” Teo said.

“Once we confirmed our suspicions, we acted.”