Cracking down on money laundering

The biggest-ever money laundering scandal to hit Singapore seems to grow ever larger as investigations proceed. What started as a $1 billion haul of assets when the scandal involving 10 individuals of mainland Chinese origin broke out in mid-August swelled to $1.8 billion by mid-September. The

latest estimate is $2.4 billion

, which includes bank deposits, gold bars, jewellery, electronic devices, luxury watches and bags, crypto assets, vehicles and more than 110 properties. The suspects,

originally from China’s Fujian province

, who have passports from countries as far afield as Cambodia, Cyprus, Dominica, Turkey and Vanuatu, are reportedly connected to organised crime syndicates operating overseas and involved in online gambling, scam operations and illegal moneylending. Some are wanted in mainland China.

The scandal was uncovered thanks to information about suspicious transactions filed by financial institutions here, including at least 10 local and international banks. Although this indicates that existing anti-money laundering (AML) provisions are working to an extent, the fact that such vast sums could enter the formal financial system and be converted into assets – be “laundered”, in other words – suggests that more needs to be done. The Monetary Authority of Singapore has said it is looking into whether the financial institutions involved

had taken reasonable steps

to mitigate money laundering risks. It also plans to tighten surveillance of family offices which manage the finances of the super-rich. Enhanced due diligence would also be needed from other entities, including property companies, dealers in precious metals, jewellery and luxury cars as well as golf clubs.