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Singapore
AsiaSoutheast Asia

Singapore’s US$740 million ‘wake-up call’ laundering case exposes loopholes, dents safe-haven reputation

  • The investigation erupted last month after police arrested 10 foreigners – mostly from China – and accused them of laundering criminal proceeds
  • Their alleged illegality went unstopped for a long period even as they splashed vast amounts of money on extravagant lifestyles, cars and homes

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Downtown Singapore. The alleged illegality went unstopped for a long period even as vast amounts of money were splashed on extravagant lifestyles, centred around multimillion-dollar homes, ultra-luxury cars and prized golf-club memberships. Photo: dpa
Bloomberg
A money laundering investigation in Singapore involving more than S$1 billion (US$740 million) is shining a light on fund flows from abroad and raising questions about loopholes that enabled an alleged crime syndicate to accumulate luxury property, Bentley cars and cryptocurrency.
The investigation erupted into public view in mid-August after police arrested 10 foreigners – most originating from China – and accused them of laundering criminal proceeds. It has prompted questions about whether the banking giants that drive the economy have done enough to block dubious transactions.
Singapore’s success at positioning itself as a safe place to park family fortunes has spurred an influx of the well-to-do from across Asia, compounded by a surge in affluent Chinese fleeing crackdowns and pandemic restrictions. The sheer scale of inflows has boosted prices for real estate, cars and private schools. It has also lured some bad actors, according to the police.

“The risks of money laundering have been evident for a long time,” said Anton Moiseienko, a law lecturer at the Australian National University in Canberra who studies transnational and economic crime. “Now is really a time of reckoning or a wake-up call where we see a spectacular example of those risks materialising.”

The Monetary Authority of Singapore has said it will take action to deal with shortcomings in controls arising from the case. Photo: Bloomberg
The Monetary Authority of Singapore has said it will take action to deal with shortcomings in controls arising from the case. Photo: Bloomberg

Police last month disclosed that they had seized or frozen the assets held by the foreigners, and accused them of seeking to launder gains from organised crime in other countries. In China, police notices show at least five are wanted for a range of offences including illegal online gambling and scams.

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