SG is money-laundering hub

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What are Bearbricks? Toys seized in billion-dollar money laundering case can be worth thousands​

Bearbrick figures seized in an anti-money laundering operation by the police. PHOTO: SINGAPORE POLICE FORCE

Ian Cheng
Correspondent

AUG 19, 2023

SINGAPORE – Last Tuesday, islandwide anti-money laundering raids saw the police round up a group of foreigners and seize cash and assets that included luxury cars, watches and handbags.
Including 105 properties that were issued with prohibition of disposal orders, the haul was worth more than $1 billion.
But what also caught people’s attention were multiple colourful bear-like figurines listed as “ornaments” by the police.
A photo released by the police showed what appeared to be a collection of 60 Bearbrick figures.
But what exactly were they, and why were they among the items seized?
A Bearbrick – stylised as BE@RBRICK – is a collectible toy figure produced by Japanese collectible company Medicom Toy. It was first introduced in 2001 as a free gift to visitors at the World Character Convention in Tokyo.
The toys, shaped like an anthropomorphic bear and made of plastic, come in different sizes – for instance, 100%, 400% or 1,000% – with the percentage corresponding with the height.

A 100% Bearbrick stands at 7cm tall, while the other sizes are 50% (3.5cm), 70% (5cm), 150% (10.5cm), 200% (14cm), 400% (28cm), 1,000% (70cm) and 4,000% (140cm).
A 100% Bearbrick can be bought for as little as $7, while the 200% and 400% ones cost about $120 each. The 1,000% version costs around $600.
However, their value can grow to mind-boggling proportions.

Mr Shawn Wee, the owner of collectibles store Eye For Toys, said the Bearbricks seized in the anti-money laundering operation could be worth between $450,000 and $500,000.
Chinese-language daily Lianhe Zaobao quoted experienced collectors and sellers as saying the collection’s estimated worth is between $800,000 and $1 million.
Referring to the middle eight Bearbricks in the second row in the photo provided by the police, Mr Wee said: “The most expensive of the lot belongs to the Pinel x Kongo set of eight pieces, at US$222,000 (S$302,000).”
The Pinel et Pinel x Cyril Kongo BE@RBRICK series was made in collaboration with street artist Cyril Kongo, Medicom Toy and Forward Fashion in Macau – each piece is “entirely made by hand” with 56 pieces of leather and coated canvas.

The Pinel et Pinel x Cyril Kongo BE@RBRICK series. PHOTO: MEDICOM TOY
Drawing on his 18-year expertise in collecting, Mr Wee said the pieces seized are likely authentic.
He added: “Most of the Bearbricks in the photo were released between late 2019 and late 2022. I was able to identify some chronological pattern as to how the collection was assembled.
“(Collections) with fake Bearbricks will usually contain random fake Bearbricks from any year since the manufacturer of counterfeit Bearbricks will usually produce just the popular models.”

A Bearbrick display. PHOTO: SHAWN WEE/EYE FOR TOYS
Speaking to Zaobao, owner of collectibles store Sugoi Collection, Mr Shawn Xu, said the Bearbrick collecting scene in Singapore is relatively small, so most collectors know one another.
The image of the seized Bearbrick collection has sparked debate in local circles as it is uncommon for one person in Singapore to own so many rare and expensive Bearbricks. Enthusiasts here say they are unaware of such a major collector.
Mr Xu added that there are only 26 sets of the Pinel et Pinel x Cyril Kongo Bearbrick collection, with most collectors able to afford only one or two loose pieces from a set. This is the first time he has seen a complete set of eight in Singapore, estimating it to be worth about $380,000.

Billion-dollar money laundering case: 11 more properties in S’pore linked to suspects
Online collectibles store FalKen Toys said that due to shifts in the collectibles market, the value of Bearbricks can fluctuate.
A FalKen Toys’ spokesman noted that the ones seized by the police in the billion-dollar money-laundering case look like they came from the 1,000% range.
The spokesman added: “Some 400% bears can go up to thousands, if not tens of thousands (of dollars), depending on rarity. Some 1,000% ones can be worth tens of thousands.”
A recent Coco Chanel 1,000% Bearbrick at art and luxury auction house Christie’s saw a closing bid of HK$138,600 (S$24,000) on April 20. The same item auctioned at Sotheby’s in September 2020 went for more than double that at HK$302,400.

A Coco Chanel 1000% Bearbrick at art and luxury auction house Christie’s saw a closing bid of HK$138,600 (S$24,000) on April 20. SCREENGRAB: CHRISTIE’S
Pop culture website Complex noted that this particular collectible – of which only 1,000 were made – was designed by the late Karl Lagerfeld in 2006 to resemble the high-fashion brand’s namesake and founder. Only several have surfaced on the market as most were specially displayed in Chanel boutiques.
The most expensive Bearbrick sold was a one-off design named Qiu Tu by Chinese artist Yue Minjun, which went for about US$157,000 at an auction following its debut in 2008.

The Qiu Tu Bearbrick by Chinese artist Yue Minjun went for about US$157,000 at an auction following its debut in 2008. PHOTO: YANG GALLERY
Since the toy line’s inception, Medicom Toy has produced thousands of Bearbrick designs, with the figures becoming a favourite among collectors, pop culture enthusiasts and celebrities worldwide. Famous collectors include South Korean rapper G-Dragon, American musician Pharrell Williams and Mandopop stars Jay Chou and JJ Lin.



Fashion and lifestyle brand Highsnobiety said re-releases of Bearbrick designs by Medicom Toy are rare as a specific design will be licensed to be “worn” by only a certain number of figurines. This means that Bearbricks are effectively all limited edition, making them sought after by collectors, and a good investment as well.
Each design is unique, with some featuring collaborations with famous brands, artists and pop culture icons.
These include fashion brands like Chanel and Supreme, artists like KAWS and Andy Warhol, popular franchises such as Star Wars and Marvel, and classic characters like Hello Kitty, Sesame Street, Teenage Mutant Ninja Turtles and Doraemon.

A Bearbrick display at Raffles City Singapore in November 2021. PHOTO: FACEBOOK/CAPITALAND/ACTIONCITY/MEDICOM TOY
Secretive release schedules also add to the hype behind these plastic pot-bellied bears. Medicom Toy remains tight-lipped about new releases, with reveals sometimes made just two to three weeks before launch. The number of Bearbricks produced for each model is also not typically revealed.
Sneakers – another realm of collectibles – have also seen Bearbrick collaborations, with Medicom Toy partnering brands like Nike on Bearbricks, sneakers and sportswear since 2006, according to local toy retailer Eye For Toys, which specialises in Bearbricks.
This encourages an overlap between these segments, with an exclusive Bearbrick accompanying a corresponding sneaker or apparel drop.



Mr Wee described Singapore’s Bearbrick collecting scene as being at the forefront of the Asean region, alongside Thailand.
“The Bearbrick scene here probably took off in mid-late 2015, when a Singapore-exclusive Bearbrick named Jiangshi was released. That has set Singapore on a path of exclusive Bearbricks offered by Medicom Toy for the local market,” he said.
Resembling a supernatural undead creature from Chinese folklore, the Jiangshi figurine made its debut at the Singapore Toy, Game and Comic Convention in 2015, including both regular and glow-in-the-dark versions in different sizes.

The Singapore-exclusive Jiangshi Bearbrick. PHOTO: MEDICOM TOY
Other releases exclusive to Singapore include the SJ50 – My First Be@rbrick Baby 400%, launched to commemorate 50 years of diplomatic relations between Singapore and Japan in 2016. There were also three versions of pewter Bearbricks in collaboration with American artist Steven Harrington and Malaysian pewter manufacturer and retailer Royal Selangor, Mr Wee said.

The SJ50 - MY FIRST BE@RBRICK BABY 400% was launched to commemorate 50 years of diplomatic relations between Singapore and Japan in 2016. PHOTO: ACTIONCITY
In 2021, the world’s tallest Bearbrick, an 8,000% figure standing at 5.6m tall, was displayed outside Raffles City shopping centre as part of the Love, BE@RBRICK Christmas campaign in collaboration with ActionCity.



Stores told The Straits Times that they are unable to provide an estimate of the number of Bearbrick collectors here, pointing instead to home-grown toy and collectible retail brand ActionCity, the sole distributor for Bearbricks locally. ST has contacted ActionCity for more information.
It may also be hard to qualify what makes a collector, as FalKen Toys points out – some may have an entire showcase of Bearbricks, while others may only have a couple that really appeal to them.
The Bearbrick Community SG Facebook group, which Mr Wee manages, has about 8,000 members, while the Bearbrick Singapore Buy/Sell/Trade Facebook group has about 1,900 members.

 

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$7m watch, $250k Hermes bag among items seized in billion-dollar money laundering raids​

Industry experts said the luxury items seized in the raids are not easily bought. PHOTOS: SINGAPORE POLICE FORCE

Nadine Chua

AUG 19, 2023

SINGAPORE - A $250,000 Hermes Birkin bag and a rare Patek Philippe watch that costs over $7 million on the resale market are said to be among the items seized in raids this week conducted by the police in a billion-dollar money laundering case.
Three industry experts, and those who own businesses reselling such designer goods, said these luxury items are not easily bought.
On Tuesday, 10 foreigners holding passports from countries such as China, Turkey and Cambodia were arrested in an anti-money laundering operation.
Cash and assets of about $1 billion were seized, frozen or issued prohibition of disposal orders, which mean they cannot be sold.
The nine men and one woman, aged 31 to 44, were charged on Wednesday over their suspected involvement in offences including forgery, money laundering and resisting arrest. All 10 are originally from Fujian, China.
Another 12 are assisting in investigations, while eight others are on the run and have been placed on a wanted list.
The police said more than 250 luxury bags and watches were seized in the raids.

Photos of the seized designer goods showed rows of extravagant watches, with most priced over $250,000, said Mr William Tan, manager of luxury watch dealer Watch Exchange.
Mr Tan said one watch in the collection appears to be a Sky Moon Tourbillon by Swiss luxury watch manufacturer Patek Philippe, and is estimated to fetch a price of over $7 million on the resale market.

One watch in the collection appeared to be a Sky Moon Tourbillon by Swiss luxury watch manufacturer Patek Philippe (top row, centre) and can cost over $7 million on the resale market. PHOTO: SINGAPORE POLICE FORCE
The South China Morning Post reported this rare model sold for a record US$5.8 million (S$7.8 million) earlier in 2023, a sale that marked one of the highest prices paid for a timepiece at an auction.

Luxury watch and bag dealers said interested buyers cannot just walk into shops and buy these highly sought-after items, even if they had the cash.
There is usually a long waiting list for popular models and, if a coveted piece is available, priority would go to VIP buyers.
These buyers must have a long purchase history with the brand, said people in the industry.
Another watch seen in the collection is believed to be a Richard Mille RM 07-02 with a sapphire case, which can fetch a price of around $2 million on the resale market.

A watch, believed to be a Richard Mille RM 07-02 with a sapphire case (second row, second from right), is estimated to cost around $2 million on the resale market. PHOTO: SINGAPORE POLICE FORCE
Mr Tan said this model, which is tough for keen buyers to get their hands on at the boutique, was seen on the wrist of American rapper Nicki Minaj in 2021.
He added that what appears to be a Rolex Daytona Rainbow watch, which costs more than $600,000 on the resale market, can also be seen in the photos. This is more than triple the retail price of the watch.
Mr Tan said one collection of 32 watches shown in one of the photos is estimated to set a buyer back by $30 million. Other brands of watches seen in the collection include Chopard, Van Cleef & Arpels and Cartier.

The watches in this collection, which were seized by the police in their anti-money laundering raid, are estimated to cost around $30 million. PHOTO: SINGAPORE POLICE FORCE
The collection of bags seized is estimated to also cost millions of dollars, those in the business of reselling designer handbags told The Straits Times.
Hermes, Chanel, Dior, Louis Vuitton and Prada bags can be seen in the photos, with some bags estimated to be worth over $100,000.

Hermes, Dior and Chanel bags were among the luxury items seized in the anti-money laundering raids. PHOTO: SINGAPORE POLICE FORCE
One bag appears to be a specially made Hermes Birkin with matte alligator skin and brushed gold hardware, said the owner of a luxury bag resale business here.
She estimates the pastel green bag to cost around $130,000.
What looks like a Hermes Himalayan Birkin, a much sought-after item by many collectors, can also be seen on the shelves of the suspects.
Industry experts estimate the bag to cost around $250,000, or even double that amount if the hardware is encrusted with diamonds.

An Hermes Birkin with matte alligator skin and brushed gold hardware (middle row, right) and what looks like an Hermes Himalayan Birkin (middle row, centre). PHOTO: SINGAPORE POLICE FORCE
Another industry expert, who declined to be named, said: “Given the size of the bag collection, it is very likely they were all purchased from the secondary market, as a client is allowed to purchase only two bags a year at Hermes.”
Those in the business of reselling luxury bags and watches said most of their customers are Singaporeans, even though more tourists from Asia, including China and Indonesia, have patronised their stores since borders reopened after the pandemic.
The reopening of borders has fuelled the surge in demand for such luxury goods, industry experts said.
Mr Tan added: “The rich not only had limited spending opportunities during the pandemic, but they have also realised that certain watch models are good investments, and decided to park their cash in these pieces.”

 

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Billion-dollar money laundering case widely reported in foreign media​

Ten suspects were rounded up in one of Singapore’s biggest anti-money laundering operations. PHOTOS: SINGAPORE POLICE FORCE

Wong Shiying

AUG 20, 2023

SINGAPORE – The billion-dollar money laundering case involving 10 foreigners from countries such as China, Cambodia and Cyprus has attracted widespread interest in Singapore and abroad.
Reports on the 10 suspects, who were rounded up in one of Singapore’s biggest anti-money laundering operations, have been published on major international news sites such as the BBC, CNN, Al Jazeera and Bloomberg.
News outlets in Australia, Cambodia, Cyprus and India also ran reports on this group of foreigners and the luxurious assets they had amassed here.
Although the suspects were all originally from Fujian, in eastern China, there has not been much coverage of the matter on Chinese official news outlets such as Xinhua News Agency and the People’s Daily.
The report was picked up by some Chinese independent news sites, which sparked discussions on where the illicit funds came from, and the wider trend of China’s super-rich relocating to Singapore.
News outlets in Cambodia and Cyprus – an island country in the Mediterranean – raised questions on whether there are systemic loopholes that allow foreigners to easily obtain citizenship in their countries for illicit activities.
The Cyprus Mail reported on Thursday that MP Irene Charalambidou had urged the Interior Ministry to revoke the Cyprus passports of the two accused in this case – Su Haijin, 40, and Wang Dehai, 34.

“The international stigmatisation of our country as a result of the abuse behind the golden passports should be immediately managed by the competent minister,” Ms Charalambidou was quoted as saying.
A golden passport is one granted by a country in exchange for an investment or a donation.
The Organisation for Economic Cooperation and Development has flagged at least 14 countries, including Cyprus, that it says have some variation of a residency or citizenship by investment scheme, which could be misused by some applicants to hide their assets or avoid taxes.
Cambodian news outlet The Phnom Penh Post reported on Thursday that the three accused who hold Cambodian passports had obtained citizenship in recent years.
Su Baolin, 41, and Su Wenqiang, 31, became citizens through the naturalisation process in 2019, while Chen Qingyuan, 33, got his passport in 2018.
According to the report, there are several criteria a foreigner must meet to become a naturalised Cambodian. These include living in Cambodia for at least seven years, not having a criminal record and being able to fluently write and speak Khmer, the official and national language of Cambodia.
MORE ON THIS TOPIC
$7m watch, $250k Hermes bag among items seized in billion-dollar money laundering raids
Bearbricks seized in money laundering case can be worth thousands
Mr Pech Pisey, executive director of Transparency International Cambodia, told The Phnom Penh Post that the billion-dollar money laundering case could affect Cambodia’s international reputation.
Transparency International is a global non-governmental organisation set up to tackle the issue of corruption around the world.
He said: “As the suspects reportedly held Cambodian citizenship, the police would investigate whether any of their financial transactions took place in Cambodian territory.
“One lesson that can be learnt from this case is that we should abide by the laws when issuing citizenship to foreign nationals, with transparency and integrity.”

 

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Beijing steps up fight against money laundering even as it tries to stem capital outflow breaches​

Chinese officials announced on Aug 15 a new office at the People’s Bank of China dedicated to fighting money laundering. PHOTO: REUTERS

Elizabeth Law
China Correspondent

AUG 19, 2023

BEIJING - China has dialled up its fight against money laundering, even as it ramps up efforts to staunch illicit outflows of funds.
Last Tuesday, officials announced a new office at the central bank, the People’s Bank of China, dedicated to fighting money laundering.
Officers will harness big data to solve crimes and work with prosecutors as part of efforts to establish a coordinated investigation system to combat illicit financial flows, said a senior official from Beijing’s prosecution arm.
Prior moves have included policy measures that limit the amount of money one can transfer out of China, a ban on cryptocurrency trading and the suspension of casino junkets to Macau, among others.
United States-based think-tank Global Financial Integrity (GFI) estimates that China lost US$3.75 trillion (S$5.09 trillion) in illicit fund flows between 2000 and 2011, based on declared receipts and actual fund flows for trade, with the number believed to be higher now.
Since 2007, strict capital control measures mean each Chinese resident is allowed to convert only US$50,000 worth of yuan into foreign currency every year.
As fears mount over China’s slowing economy – a hangover from three years of Covid-19 restrictions and curbs on the private sector that have crippled its property sector – Beijing is even more determined to keep capital within the country’s borders.

This has not deterred those who want to move additional capital overseas from turning to other means, including cryptocurrencies. Up to US$50 billion worth of cryptocurrency left China between 2019 and 2020, the Chainalysis blockchain data platform estimated.
“Much of the capital flight out of East Asia is facilitated by the stablecoin Tether (USDT), a cryptocurrency notionally pegged to the value of the US dollar,” Atlantic Council research assistant Francis Shin wrote in an explainer for the World Economic Forum.
China banned cryptocurrency exchanges in 2017 and outlawed all crypto transactions in 2021, saying crypto facilitated financial crimes and posed a threat to the financial system because of its speculative nature.

But crypto’s decentralised nature means that it continues to easily circumvent capital controls. Chinese traders can still make discreet trades through the use of foreign bank accounts.
Numerous other channels for funds to leave China under the radar exist. Earlier in August, immigration services company chief Linda He was among five people arrested in Shanghai for illegal foreign currency transactions worth some 100 million yuan (S$18.7 million).
The 54-year-old woman’s firm helps rich Chinese citizens acquire visas to Western countries, identify overseas investment opportunities, secure spots at top foreign schools for their children and, allegedly, move funds out of China.
As a recent money laundering crackdown in Singapore evinces, the murky flow of money overseas can include vast amounts of questionable origins.
The Singapore authorities conducted a massive islandwide blitz earlier in the week and arrested 10 people, who are said to have originated from Fujian province in south-eastern China. They face charges of forgery and money laundering in a case involving about $1 billion of cash, properties, luxury cars and other assets.

Across the globe, countries including Australia, Canada and Italy have broken up money laundering operations that ride on China’s shadow banking organisations that include financial firms outside regular banks, insurance companies, pension funds and clearing houses.
Domestically, regulators have largely targeted small and medium-sized organisations, but have left larger, more sophisticated and politically connected operations alone, say experts.
Researchers say how strictly the rules in China are enforced depends on political will.
An October 2022 GFI report on China’s role in transnational crime and illicit financial flows said Beijing is generally hands-off when it comes to transnational crimes that it deems to have insignificant domestic impact.
“Beijing customarily will only respond to transnational crimes that have ‘minor’ domestic impacts if there is significant international pressure,” GFI director of illicit trade Channing Mavrellis and anti-money laundering specialist John Cassara wrote in the report.
“However, even then, the response has often been symbolic rather than a genuine attempt to curtail the activity, particularly if it involves key sectors or industries.”

 

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Money laundering suspect’s link to Sentosa: He frequented golf club, partied on yacht, owned homes on island​

Cypriot national Su Haijin enjoyed meals at Sentosa Golf Club and was spotted on a yacht berthed at One°15 Marina in Sentosa Cove. PHOTOS: JASON QUAH, ST FILE, WECHAT

David Sun
Crime Correspondent

AUG 20, 2023

SINGAPORE - Membership at one of Singapore’s most expensive clubs, private dining rooms, parties on a yacht and ownership of pricey handbags and watches.
The 10 individuals arrested in an anti-money laundering blitz last week had a taste for the good life, which extended beyond their collection of luxury cars.
Checks by The Straits Times showed that Cypriot national Su Haijin, 40, enjoyed meals at Sentosa Golf Club, where the cost for a foreigner to join the club is believed to be around $950,000 at present.
He was also spotted on a yacht berthed at the One°15 Marina at Sentosa Cove, and owned homes there.
For Singapore citizens and permanent residents, membership at the Sentosa Golf Club costs around $500,000.
Foreigners pay about $500,000 for membership at Singapore Island Country Club (SICC) and $280,000 at Tanah Merah Country Club.
At least two of the 10 individuals, who were originally from Fujian, China, are members of Sentosa Golf Club.

A club membership broker, who spoke to ST on condition of anonymity, said there has been chatter in the golf and social club community following the blitz last Tueday.
“There was this one particular group that was very loud (at Sentosa Golf Club), and everyone knows about the group because they liked to show off,” he said.
He added that several of the individuals arrested were seen frequenting exclusive golf and social clubs.

“In the last two to three years, we have noticed a trend of rich foreigners coming to Singapore and buying up club memberships and big cars,” he said.
According to the Sentosa Golf Club’s bi-monthly magazine, the two individuals had joined the club between April and September 2021.
One of them holds a valid golf handicap, according to checks via the Singapore Golf Association’s Centralised Handicapping System.
Two other individuals linked to the case also hold golf handicaps, but their names could not be found in Sentosa Golf Club’s magazines.

The four men were among 10 individuals arrested in the islandwide blitz, which saw about $1 billion in assets seized, frozen or issued prohibition of disposal orders.
The order prevents the sale of assets.
The assets, which were owned by the individuals under investigation or by companies and people linked to them, included 105 properties worth $831 million.
The properties comprise seven detached bungalows at Sentosa Cove, 79 condominium units – 19 of which are under construction – and 19 commercial or industrial spaces.
Several of the 10 people, who were charged last Wednesday with different offences, including forgery and money laundering, are related either by birth or marriage.

Yacht parties​

The two individuals who are members of Sentosa Golf Club were also often seen on a yacht, which was berthed at the One°15 Marina at Sentosa Cove as at Saturday.
The individuals hosted parties on the vessel, which, according to an online vessel finder, had made a number of short trips between July and August 2023.
The marina is a short walk from where Zhang Ruijin, 44, and Lin Baoying, 43, were arrested at a bungalow at Pearl Island. The two, a couple, are among the 10 accused of playing a role in a billion-dollar money laundering scheme.

The two individuals, who are members of Sentosa Golf Club, were also often seen on a yacht, which was berthed at the One°15 Marina in Sentosa Cove as at Saturday. ST PHOTO: JASON QUAH
Su owned properties there as well. In August 2021, The Business Times reported that a Cypriot citizen by the same name had bought a pair of adjacent bungalows at Sentosa Cove for a total of $36.37 million.
During the blitz, the police also found cars, luxury bags, watches and a set of collector toys known as Bearbricks, which are said to be worth between $400,000 and $1 million in total.

Luxury bags found during the blitz. PHOTO: SINGAPORE POLICE FORCE

Watches were also seized. PHOTO: SINGAPORE POLICE FORCE
Some of the handbags seized are worth more than $100,000 each.
The cars included Bentleys, Range Rovers, and a Rolls-Royce Dawn and Rolls-Royce Phantom. Listings on car sales portals showed that such models are on sale at prices in excess of $1 million, with some priced closer to $3 million.

Cars seized included Bentleys, Range Rovers, and a Rolls-Royce Dawn and Rolls-Royce Phantom. PHOTO: SINGAPORE POLICE FORCE
Su, who was seen at the Sentosa Golf Club and the marina, often dined in private rooms at restaurants in town, ST learnt.
He was arrested last Tuesday at his residence at a good class bungalow in Ewart Park, Bukit Timah, and charged with resisting arrest the next day.

Su Haijin was arrested last Tuesday at his residence at a good class bungalow in Ewart Park. PHOTO: ST FILE

Su (in white shirt and shorts) being apprehended at 16 Ewart Park on Aug 15. PHOTO: ST READER
A total of $2.1 million in cash, 13 properties, five luxury vehicles, and a collection of wine and liquor are linked to the case against him.
The others arrested in the blitz are:

• Su Baolin, 41, a Cambodian national who is Su Haijin’s brother, is one of those in remand, and has been charged with using a forged document.
• Su Wenqiang, 31, a Cambodian national charged with money laundering.
• Su Jianfeng, 35, a Vanuatu national who faces a money laundering charge.
• Wang Dehai, a 34-year-old Cypriot national charged with one count of money laundering.
• Wang Baosen, 31, a Chinese national charged with money laundering.
• Vang Shuiming, also known as Wang Shuiming, 42, a Turkish national charged with forgery.
• Chen Qingyuan, 33, a Cambodian national charged with money laundering.
• Zhang Ruijin, 44, a Chinese national charged with forgery.
• Lin Baoying, 43, a Chinese national, and the only female who was arrested in the group, charged with forgery.

The cases against all 10 are expected to be heard in court again on Wednesday. Police, who are speaking to 12 other individuals, said eight other suspects are on the run.

 

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Too early to tell if banks hit by billion-dollar money laundering case had followed rules, says MAS​

Some of the cash seized in the anti-money laundering operation this week. PHOTO: SINGAPORE POLICE FORCE

Angela Tan
Senior Correspondent

AUG 20, 2023

SINGAPORE - It is too early to tell if the banks affected by one of the country’s biggest anti-money laundering probes had adhered to stringent controls, said the Monetary Authority of Singapore (MAS).
Citibank Singapore and CIMB Bank are among banks hit by the billion-dollar money laundering case, where 10 foreigners were arrested and charged with forgery offences and laundering of ill-gotten gains allegedly from their crimes overseas, linked to scams and online gambling.
All were originally from Fujian in eastern China.
An MAS spokesman said: “Supervisory engagements with these financial institutions are ongoing to assess whether they have taken all reasonable steps to mitigate against money laundering and terror financing risks.”
MAS told The Straits Times that there had been a number of cases where banks were deceived by forged documents despite rules to combat money laundering and terror financing.
The regulator will take action where the financial institutions’ controls have fallen short, as it has done in past cases, the spokesman said.
In June, MAS penalised three banks – Citibank Singapore, DBS Bank and OCBC Singapore – and insurer Swiss Life a total of $3.8 million for breaches of its anti-money laundering requirements. The breaches were found following irregularities related to Wirecard.

In 2022, MAS penalised Vistra Trust $1.1 million for failing to comply with its anti-money laundering controls, placing it at higher risk of being used as a conduit for illicit activities.
However, one of the highest profile cases involved transactions linked to Malaysia’s scandal-hit state fund 1Malaysia Development Berhad (1MDB). The authorities here took action against several banks and bank officials for violating anti-money laundering controls over transactions related to 1MDB, including the closure of units of BSI Bank and Falcon Bank.
MAS said it conducts inspections on an ongoing basis, focusing on enhanced due diligence measures, including corroboration of the source of wealth and source of funds.

It said: “While financial institutions have taken steps to improve these controls, MAS will continue to work with them to ensure that controls keep pace with the increasing sophistication of money laundering typologies.”
MAS added that Singapore’s wealth management sector is a key area of supervisory focus because of the higher risks that come with the huge flows of funds into the Republic. Assets under management are estimated at around $5.4 trillion.
The sector came under the spotlight after the police conducted raids last Tuesday which saw cash and assets of about $1 billion seized, frozen or issued with prohibition of disposal orders, which means they cannot be sold.
More than 35 related bank accounts, with an estimated total balance of more than $110 million, were also seized in one of the country’s biggest anti-money laundering probes.
Turkish national Vang Shuiming (also known as Wang Shuiming) and Cambodian Su Baolin were charged with submitting fake documents to Citibank Singapore.

Cambodian Su Baolin was one of two charged with submitting fake documents to Citibank Singapore.
Two Chinese nationals, Zhang Ruijin and Lin Baoying, were charged with submitting fake documents to cheat CIMB Bank.

Among others arrested were (from left) Su Wengqiang, Su Jianfeng and Wang Dehai. PHOTOS: CHINA POLICE WEBSITE
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In the latest case, intelligence and information from suspicious transaction reports (STRs) filed by the affected financial institutions alerted MAS and the law enforcement authorities to suspicious activities attempted through the financial system.
The MAS spokesman said the financial institutions took the “necessary risk mitigation actions, including exiting the relationships, where warranted”.
Mr David Chew, director of the Commercial Affairs Department, had said Singapore has zero tolerance for the use of the country as a safe haven for criminals or their families, or for the abuse of the banking facilities.

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What is expected of banks​

Typically, banks have three types of controls – know your customer (KYC), transactions monitoring and sanctions screening. ST outlines the typical bank process when dealing with customers’ accounts:

Know your customer​

Banks are required to carry out due diligence before starting a banking relationship with a customer. This includes verifying identities, customer profiling and assessing the potential money laundering and terrorism financing risks they may pose, which would classify the customer as high risk.
Such customer profiling involves gathering information on a customer’s identity, address, occupation, and banking relationships and products used.
For foreigners who do not have a Singapore digital identity registered, these checks typically involve sighting and verifying passports or other forms of identification such as employment details.
To varying degrees, customers may also be subject to “adverse media” or negative news checks, which are intended to detect if customers have been subject to investigation or enforcement in other jurisdictions.
Adverse media checks involve searching media sources to find any possible negative news about the customer that might pose a risk to banks in terms of money laundering or terrorist financing.

Sanctions screening​

Banks also have sanctions screening controls which are triggered if the originator or beneficiary of funds is on a watchlist, or if there are concerns relating to that payment. For example, if the funds are destined for a sanctioned country or if in the course of business, the bank believes that sanctions evasion is occurring.

Enhanced due diligence measures​

For high risk customers, banks must apply enhanced due diligence measures.
First, banks must establish and confirm a customer’s source of wealth. They do this by using credible public information sources or requesting independent documents from the customer. Documents may include evidence of titles, copies of trust deeds, audited financial statements, salary documents and tax returns.
Second, banks must check and verify the origin of the money that is being invested or deposited to ensure it is not the proceeds of crimes. Potential red flags are when customers cannot explain the source of wealth or funds, or provide legal supporting documents such as title deeds. Their explanations may also be dodgy.
Third, after relations are established, banks must conduct enhanced monitoring of these customers’ transactions on an ongoing basis to ensure these transactions are legitimate.
For instance, where unusually large or complex transactions are observed, banks must seek clarifications and obtain supporting documents from the customer to understand the background and purpose of these transactions. This is to assess if the transactions are in line with their understanding of the customer.
Examples of unusual transactions include frequent transactions with third parties or unusually large transactions that do not fit the customer’s profile.

Red flags and suspicious transaction reports (STRs)​

Where red flags are raised, banks will scrutinise the customer’s transactions and information provided to assess whether an STR needs to be filed.
Red flag indicators include suspicious fund flows, dubious documentation of source of wealth or funds, and inconsistencies or evasiveness in providing requested information to the bank.
Regardless of whether they file STRs, banks are required to put in place suitable mitigation measures.
These may include enhanced monitoring of relations to determine if concerns remain, conducting checks before processing any transactions or even exiting the relationship, depending on the seriousness of the risks posed.
Over the years, banks have enhanced their controls with data analytics and artificial intelligence (AI). AI has allowed banks to identify transactional and profile linkages such as connected parties, addresses and counterparties to map out a network of seemingly unrelated customers, which may not be easily detected by manual due diligence reviews.
This ability to identify hidden links to irregular networks within a financial institution’s customer base has enabled banks to subject other seemingly low or normal risk customers to increased scrutiny and assess if they pose similar risk concerns.

 

[LITTLEREDDOT]

Suspects in billion-dollar money laundering case in S’pore allegedly linked to China gambling groups​

The 10 individuals arrested in Singapore were charged on Aug 16 with offences including forgery and money laundering. PHOTO: SINGAPORE POLICE FORCE

David Sun
Crime Correspondent

AUG 22, 2023

SINGAPORE - Several foreigners arrested last Tuesday in Singapore’s biggest anti-money laundering operation are allegedly linked to individuals who were investigated in China for illegal gambling activities.
Vang Shuiming, who is facing a forgery charge here, is said to be a known associate of eight individuals on the run from the authorities in China, which had uncovered an illegal gambling syndicate in May 2022.
The eight fugitives – Wang Shuiting, Shi Wenhui, Wang Zhiqiang, Jia Xueliang, Wang Jinwang, Wang Zaiyuan, Su Weijie and Huang Yijiao – have been urged to return to assist in a probe which saw 131 people arrested in China and more than 10 million yuan (S$1.9 million) seized.
Vang, who is also known as Wang Shuiming, is a 42-year-old Turkish national. He was among the nine men and one woman, aged 31 to 44, who were arrested in Singapore in an islandwide operation that involved more than 400 officers.
A second individual arrested here – Wang Baosen, 31 – is allegedly linked to Wang Bingang, 34, and Wang Cailin, 36.
According to media reports, the three Chinese nationals were investigated by the Chinese authorities for their roles in operating illegal gambling sites.
Baosen, who is in remand here and facing a money laundering charge, is said to have been a member of the same group as Bingang and Cailin.


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Chinese media outlet Shi Chang Xin Bao reported in 2013 that Bingang and Cailin were in their 20s when they launched a gambling website which offered games like blackjack and baccarat and provided sports and e-sports betting services.
Their business grew quickly and in 2014, they moved the operations to the city of Bavet, in Cambodia, which is near the border with Vietnam.
Soon after they launched the site Hongli300, the group expanded their team aggressively, hiring and recruiting ethnic Chinese people to fill roles in graphic design, customer service and finance management.


The media in China said Bingang and Cailin also recruited family members and used their bank accounts to hold illicit funds acquired through the illegal gambling site.
According to reports, others involved in the operations included Xie Juxiang, Wang Jin, Liao Haican, Tang Li, Huang Jinfeng, Sun Xinzhao, Chen Jianqiang and Wang Chaolan, who is Cailin’s sister.

The illegal gambling site Bingang and Cailin ran was shut down around October 2014. It was churning about 980 million yuan in various transactions at the time.
In 2015, a district court in China fined and sentenced the two men to three years’ jail for running the illegal site. Several other members of the gang were also jailed.
Baosen had also been investigated in the same probe.

Another gambling group​

Three other suspects here facing a money laundering charge each – Cypriot national Wang Dehai, 34; Vanuatu national Su Jianfeng, 35; and Su Wenqiang, 31, a Cambodian national – are allegedly linked to another gambling group in China.
According to media reports, they are known associates of Su Yongcan, 32, and Wang Huoqiang, 29, who were reported to be on the run in 2018.
The two men were among 72 individuals the authorities in China investigated in 2017 as they clamped down on illegal gambling activities.
Online gambling is illegal in China, but it grew at an astonishing rate amid the Covid-19 pandemic.
In 2021, China’s Ministry of Public Security said police probed more than 17,000 cases of cross-border gambling and arrested more than 80,000 suspects in cases that involved over $151 billion in illegal transactions.
It also smashed more than 2,200 online gambling platforms, 1,600 illegal payment platforms and underground banks, and 1,500 gambling promotion platforms that same year.
The 10 individuals arrested in Singapore were charged last Wednesday with offences including forgery and money laundering.

A man (in white shirt and shorts) being apprehended at 16 Ewart Park on Aug 15. PHOTO: ST READER
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All 10 charged in billion-dollar money laundering case held S’pore employment or dependant’s passes
They hold foreign passports from countries such as China, Turkey and Cambodia, but are said to have originated from Fujian, China.
Another 12 are assisting in investigations here, while eight others are on the run and have been placed on a wanted list.
The police here have seized, frozen or issued prohibition of disposal orders for about $1 billion in assets in relation to the case, including 105 properties as well as cars, cash and luxury goods.

 

[bushtucker]

now you know why ABSD does not work on these filthy rich money laundering chinks!

 

[LITTLEREDDOT]

Billion-dollar money laundering probe: Firms must ensure registered office address is up to date​

A warehouse unit at Kewalram House at Bukit Merah registered to Daily Glory International. ST PHOTO: JASON QUAH
Andrew Wong

AUG 22, 2023

SINGAPORE - Companies must ensure that their registered office is open and accessible to the public for at least three hours during ordinary business hours on each business day.
Under the Companies Act, firms and directors that fail to comply with the requirement may be fined up to $5,000.
They are also required to ensure that information on the company, including its registered office address, in the Accounting and Corporate Regulatory Authority’s (Acra) registers is up to date.
This is to ensure that the company remains reachable and can continue to receive correspondences from government agencies, business partners and stakeholders, said Acra on its website.
Checks by The Straits Times showed that of the 10 suspects in an anti-money laundering probe here, seven are linked to companies in Singapore, with many appointed to various roles in the firms between 2017 and 2023.
Of the 20 firms linked to the suspects, 11 were not at their registered addresses, despite being listed as “live”.

Photo taken at 101 Upper Cross Street, of a unit registered to Golden Eagle Assets and Golden Eagle Family Office. Employees of Evergrowth Partners say the firm could have been a former client but not a tenant. ST PHOTO: JASON QUAH
They included Golden Eagle Assets and Golden Eagle Family Office. Both listed Zhang Ruijin, 44, as a director. The Saint Kitts and Nevis national, who is believed to be from Fujian, China, is facing a fraud charge.

Three companies – HiCloud Technology, SG-Gree and Tian Yi Technology – appeared to be conducting business operations when ST visited their registered addresses.

Easy to register​

It takes only a few minutes and $300 to register a company in Singapore, one of the easiest places in Asia to do business in.
Professor Lawrence Loh from the National University of Singapore Business School said an application to register a business with Acra can be completed in 15 minutes, after payment of a name application fee, which is $15.

“At least one director must be locally resident in Singapore, and this can be a citizen, permanent resident, or entrepreneur pass or employment pass holder,” he said, adding that the registered office must be a Singapore address.
An entrepreneur pass from the Ministry of Manpower is required for foreigners who wish to start and operate a business in Singapore.

There were 64,305 businesses registered in 2022, compared with 65,438 the previous year, 63,480 in 2020, and 61,573 in 2019.
Said Prof Loh: “The number of company registrations does not necessarily connote economic activities, as there may be dormant companies that do not have any income or trading activity.
“It’s actually quite easy to create a business and not conduct transactions.”
He said there may be instances when entrepreneurs register a company but do not initially conduct transactions, preferring instead to wait for the right time to launch their business.
But a company that is dormant must declare it to Acra, he added.

 

[LITTLEREDDOT]

Most firms linked to suspects in S’pore money laundering ring listed as ‘live’ can’t be located​

HiCloud Technology, which was linked to one of the suspects, was still operating and said it has severed ties with the man. ST PHOTO: JASON QUAH

Zaihan Mohamed Yusof
Senior Crime Correspondent

AUG 22, 2023

SINGAPORE - Most of the firms linked to the 10 people arrested here during an islandwide anti-money laundering blitz last Tuesday could not be located, despite being listed as “live”.
According to Accounting and Corporate Regulatory Authority (Acra) records, seven of the suspects are linked to 20 firms that are registered in Singapore and still operating.
But checks by The Straits Times showed that only three of the firms were at their registered addresses.
Another 11 firms could not be located, while six others were based in locations that had restricted access, including private residences.
One of the suspects – Su Haijin – is linked to six companies. The 40-year-old Cypriot national, who originated from Fujian, China, was arrested outside a good class bungalow in Ewart Park after jumping from a second-floor balcony.
He is named as director of three companies – Yihao Cyber Technologies, Aiqinhai Investment and Daily Glory International. He is also a shareholder of three firms – Yihao Investment Holdings, Meining (Asia) International E-Commerce and SG-Gree.

Su Haijin was nabbed outside a good class bungalow in Ewart Park, near Holland Road. PHOTOS: WHATSAPP, JOYCE FANG
Although they are listed as being at Asia Square Tower 1, Yihao Cyber Technologies and Aiqinhai Investment could not be located at the office building in Marina View.

Daily Glory International, which was registered in 2020, was also not at its registered address at Kewalram House in Bukit Merah when ST checked last Friday.
An employee of a neighbouring company, which deals with sound systems and events, said: “I have worked here for over a year and the last company to be based next door to us was one that produced vending machines.”
Su, who was charged with resisting arrest, was a director of No Signboard Holdings between November 2021 and June 2022.


He was also a director and shareholder of Singapore La Fu Hot Pot between November 2017 and September 2018.
His 41-year-old Cambodian-national brother, Su Baolin, was listed on June 1 as shareholder of Sentosa Project, a general contractor company in Kaki Bukit.
But ST found another company – Jiaxing Holdings, which repairs air-conditioning units – at the listed address.

Su Baolin, a Cambodian national, was charged with using a forged document. PHOTO: INTERNET
An employee of Jiaxing, who wanted to be known only as Ms Lee, said: “We have been operating here for the last two years and have never heard of Sentosa Project. Nobody has asked us about that company aside from you.”
Checks against Acra records showed that Sentosa Project has not filed any financial reports to date. Su Baolin is facing a fraud charge.
Another suspect – Turkish national Wang Shuiming, 42 – is listed as director and shareholder of software firm Zhuo Chi Technology. He is facing a money laundering charge.
ST found that the registered address at CT Hub in Kallang is currently occupied by construction firm Interisland, which moved in about six months ago.
A spokesman for Regional Tech, which rents out the unit, said it has been leasing it to businesses for the last five years and that Zhuo Chi Technology was never a tenant.
An Acra search showed Zhuo Chi Technology has not filed financial records since registering as a business here in July 2020, and checks online showed that the firm’s domain is not active.

Five of the people arrested include (clockwise, from top left) Su Haijin, Su Baolin, Wang Dehai, Su Jianfeng and Su Wenqiang. PHOTOS: WHATSAPP, INTERNET, CHINA POLICE WEBSITE

Terminated from firm​

Meanwhile, HiCloud Technology, a cloud solution and service company in Ubi Avenue 3, said it has severed ties with another suspect – Cambodian national Chen Qingyuan.
The 33-year-old, who was found in possession of foreign passports believed to be issued by China and the Dominica, was charged here with money laundering.
A spokesman for HiCloud Technology said it suspended Chen from his role with the company last Thursday, and terminated his directorship the next day.
“These actions come in response to recent reports of his arrest and subsequent court charge related to money laundering,” said the spokesman, adding that Chen is no longer authorised to act on behalf of the firm.

He will also not be allowed to engage with staff, enter the company premises or utilise its e-mail and network facilities.
Chen was among the 10 foreign nationals – nine men and one woman – arrested in multiple raids in Singapore.
The operation saw cash and assets of about $1 billion seized, frozen or issued with prohibition of disposal orders, which prevent the assets from being sold.
More than 35 related bank accounts, with an estimated total balance of more than $110 million, were also seized.

 

[LITTLEREDDOT]

Billion-dollar money laundering and the dirty money problem for Singapore​

It’s a cat-and-mouse game to sieve out illicit finance and money laundering.​

Woo Jun Jie

The reality is that money laundering and terrorism financing can severely impact Singapore’s reputation as a financial hub. ST PHOTO: CHONG JUN LIANG

AUG 23, 2023

A recent raid resulted in the arrest of 10 foreign nationals for forgery and money laundering and the seizure of $1 billion in cash and assets, in what is now one of Singapore’s biggest money laundering sting operations.
Aside from more conventional assets such as cash, cars, properties and luxury items, 11 documents with information on virtual assets were also seized.
The risks of money laundering are exceptionally high in financial hubs such as Singapore, where the flourishing of our financial services sector is dependent upon the free flow of capital in and out of our borders.
To be clear, all financial hubs are vulnerable to money laundering. A 2021 Basel Anti-Money Laundering (AML) Index released by the Basel Institute on Governance found that global money laundering risks increased across all 110 jurisdictions assessed.
This is compounded by the difficulty of differentiating between clean and dirty money, since financial criminals have a tendency to commingle the two by embedding illicit transactions within legitimate ones.
As Monetary Authority of Singapore (MAS) managing director Ravi Menon stated in a Bloomberg interview: “When a large sum of money comes into any country, you should be worried about it.” The sum of money that enters our financial system is indeed large. In 2021, the MAS reported a record $448 billion inflow of new money.
Furthermore, Singapore’s business-friendly stance also means that it is not difficult for anyone to set up a company or purchase private property in the country. This ease of doing business is intended to increase Singapore’s attractiveness to business and investments, yet it can also be abused by those seeking out loopholes in our financial system.

The scourge of money laundering​

Money laundering and terrorism financing are perennial issues that Singapore has sought to address since its emergence as a financial hub.
We have had our share of past setbacks. In 2009, Singapore was placed on the Organisation for Economic Co-operation and Development’s (OECD) grey list of tax havens.
It was after signing information exchange agreements with 12 countries – Mexico, Qatar, Norway, Austria, Australia, the Netherlands, Britain, Denmark, New Zealand, Belgium, Bahrain and France – that Singapore was taken off the grey list.


More recently, in 2021, it was revealed that two companies that were mentioned in the leaked documents trove, the Pandora Papers, had been subject to supervisory or enforcement actions by the MAS, including a $1.1 million penalty on Asiaciti Trust for inadequate safeguards against money laundering and terrorism financing.
Some may ask: Why should we be concerned about how or where the money is spent so long as Singapore benefits from such capital flows?
The reality is that money laundering and terrorism financing can severely impact Singapore’s reputation as a financial hub. This will in turn drive away investors and financial institutions, many of whom would prefer not to have their capital commingled with illicit funds and transactions.
A 2021 working paper by the International Monetary Fund estimates that capital inflows decline on average by 7.6 per cent of a country’s gross domestic product (GDP) when it is grey-listed. That is the equivalent of losing out on $48.9 billion worth of capital inflows, based on Singapore’s nominal GDP of $644 billion in 2022.
The financial services sector alone contributes 13 per cent to our nominal GDP and employs more than 170,000 workers. Any potential decline in capital inflows or negative impacts on the financial services sector may see contagion effects and could have dire implications for our broader economy.

Money laundering in a digital economy​

Singapore’s financial regulations must keep pace with the evolving and increasingly complex nature of money laundering activities. To this end, the MAS has established a comprehensive set of regulations aimed at safeguarding Singapore’s financial sector from money laundering and terrorism financing risks.
At the heart of these regulations is the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act which sets out the criminal offences and enforcement actions related to money laundering.
Financial institutions in Singapore have been held to account, with 17 penalised for money laundering and terrorism financing over the past five years.
Still, like any criminal activity, tackling money laundering is unfortunately like a game of “cat and mouse”. Each time regulators manage to identify and curtail money laundering, financial criminals will seek out new means of laundering money. This will in turn require regulators to develop new regulations and solutions to plug emergent loopholes.
For example, the recent $1 billion money laundering case uncovered 11 documents related to digital assets. The use of digital assets for money laundering is not new. The growing incidence of cryptocurrencies being used for money laundering has, for example, prompted the United States government to establish new regulations and enhance existing frameworks to provide greater regulatory clarity on the use of cryptocurrencies.
In Singapore, regulations are similarly attempting to catch up. A paper was produced by an Anti-Money Laundering and Countering the Financing of Terrorism Industry Partnership (ACIP) working group that provides a framework for understanding the money laundering and terrorism financing risks arising from the use of digital assets, and best practices to identify, manage and mitigate such risks.

Diverse tools and shady individuals​

Two other challenges demonstrated in this case show the value of expanding cooperation with law enforcement agencies and financial institutions to tackle this increasingly complex and fluid nature of money laundering.
First, beyond digital assets, property, cash or luxury goods, money laundering can often involve other objects and goods from across the broader economy that may not immediately register as assets but nonetheless possess considerable value. A good example of this would be the Bearbricks figurines seized by the police.
Second, the individuals involved in money laundering are also increasingly diverse. Property agents and “concierges” may be involved in facilitating money-washing through the purchase of property and other major assets.

The Basel AML Index had also found the application of anti-money laundering preventive measures to be weak among lawyers, accountants, property agents and other non-financial businesses.
The MAS’ close collaboration with the Singapore Police Force’s Commercial Affairs Department in the investigations leading up to the Aug 15 arrests has been cited as a key factor that led to these arrests.
The ACIP is a good example of how financial regulators can work with industry partners to co-create anti-money laundering policies and regulations.
The launch of a digital platform known as the Collaborative Sharing of Money Laundering/Terrorism Financing Information and Cases, or Cosmic, has enabled MAS and major financial institutions to share information with one another on potential financial crimes. This can help regulators to pick up potential red flags that financial institutions may notice in their day-to-day operations and hence tackle potential financial crimes upstream.
More recently, perhaps recognising that the growing number of family offices may become platforms for illicit activities, the MAS has launched a public consultation on a revised framework to strengthen surveillance and defence against money laundering risks in Singapore’s single family office sector.
There is little doubt, given the increasingly creative ways in which financial criminals launder their monies, that Singapore will need to take a whole-of-economy perspective to tackling money laundering.
This will require the coordinated efforts of regulators, enforcement agencies, financial institutions and non-financial businesses in flagging potential financial crimes and co-creating potential regulatory solutions.
Greater financial literacy and regulatory oversight of property agents, luxury retailers and purveyors of any other goods or services who may be involved in the laundering of money will also go some way to tackle the problem of dirty money.
That includes retailers of Bearbricks and other high-value toys.

• Woo Jun Jie is a senior research fellow at the Institute of Policy Studies, National University of Singapore.

 

[LITTLEREDDOT]

S’pore’s billion-dollar money laundering case: The criminal link to Fujian’s tea county in China​

Nandou Village, a sleepy hamlet in Anxi County with ramshackle farmhouses overshadowed by multi-storey mansions. ST PHOTO: ELIZABETH LAW

Elizabeth Law
China Correspondent

AUG 23, 2023

ANXI COUNTY, FUJIAN - Nestled within the undulating mountains of Anxi County, a tea-growing area known for its Iron Buddha (Tieguanyin) tea, is Nandou village.
The sleepy hamlet, with its one main road, consists of ramshackle single-storey farmhouses, many with their own flocks of chickens and ducks. But like other villages in the county, the signs of growing wealth are evident in the luxurious multi-storey mansions that now also punctuate the landscape.
The village is also the last known address in China for Chen Qingyuan, one of 10 people from Fujian province who were recently arrested in Singapore for their alleged involvement in a money laundering case worth some $1 billion.
Some 105 properties in Singapore were issued with prohibition of disposal orders, which means the suspects cannot sell them. The assets involved are worth about $831 million and include seven bungalows at Sentosa Cove and 79 condominium units, 19 still under construction.
A wanted notice issued by China’s Ministry of Public Security says Chen has been wanted for telecommunication fraud since 2019.
At least two others involved in the case, Wang Dehai and Wang Shuiming, whose last known addresses in China are upscale apartments in Xiamen, are also wanted by the Chinese police for similar offences.

When ST visited Wang Shuiming’s last known address, an upscale apartment in Xiamen, sneakers and sliders were left untidily outside. ST PHOTOS: ELIZABETH LAW
When The Straits Times visited Wang Shuiming’s last known address, an apartment on the 28th storey, no one came to the door, but there were sneakers and sliders left untidily outside.

Wang Dehai’s registered address is a luxury apartment in one of Xiamen’s most expensive developments, whose building security turned ST away. Across the street is a luxury mixed-used development which has four high-end shops selling bird’s nest, a Chinese delicacy.

Wang Dehai’s registered address is a luxury apartment in one of Xiamen’s most expensive developments. ST PHOTO: ELIZABETH LAW
In Nandou, ST was unable to locate Chen’s house, and when it inquired about him, villagers simply said most people there had the same surname.
As is typical of most rural areas in China, mainly young children and older people are left in the village.

Convenience store owner Chen Shun, 50, said many younger people had left for the better work opportunities in cities. He said when he was growing up in the 1980s, there was only farming or construction work available in the village for someone of little education.
Asked about the phone scams that the county has become known for, Mr Chen bristled, saying: “Our people work hard for our money, we do honest business.”
Not everyone agrees, it seems. Along Nandou’s single main road are large red banners put up by the local government warning people not to be duped by anonymous phone calls. Outside the party branch is a banner vowing to fight online scams.
“Fighting against telecommunication fraud crimes with all our might, protecting the economic interest and normal economic order for the people,” says one banner.

Along Nandou’s single main road are large red banners put up by the local government warning people not to be duped by anonymous phone calls. ST PHOTO: ELIZABETH LAW
An area described as having “eight mountains for every field”, Anxi’s mountainous terrain and red soil are particularly suited for tea growing, with nearly every mountainside striated by neat rows of cultivated tea bushes.
For two weeks every spring and autumn, the mountains come alive as locals return to the fields to pick the new leaves.
After an eight-stage process, the leaves are turned into a clear yet smoky Tieguanyin, an oolong tea whose top varieties can retail for up to thousands of dollars a kilogramme.
It is backbreaking work that does not bring in a lot of money, said tea merchant Chen Shuyan, an Anxi native who operates a shop in Xiamen. “Most people my age leave the county to find jobs in bigger cities because it’s impossible to lead a decent life just farming and planting tea, selling through a middleman,” the 38-year-old told ST.

A tea wholesale market in Anxi. Best known for its Tieguanyin tea, the county has also gained a reputation for being the home of telecommunication scam syndicates. ST PHOTO: ELIZABETH LAW
Others go overseas for “better business opportunities”.
“Some people leave their children and parents behind, stay overseas for five to eight years, then they can afford to come back and build a big house,” she said.
But some who go abroad become involved in crime.
Anxi County first gained notoriety for its small-time cheats masquerading as fortune-tellers and, later, as businessmen from Hong Kong or Taiwan to defraud others in sham business deals, said a 2016 report by the official Xinhua news agency.
In the late 1990s, telecom scams that had gained traction in Taiwan moved to Fujian, where the syndicates had ties, after Taiwanese authorities started clamping down on them.
The remote mountainous villages of Anxi provided good cover for such gangs, which later expanded to other provinces and now overseas, said head of Anxi County Public Security Bureau Criminal Investigation Brigade Li Dongqiang in an interview with Liaowang, a magazine under the official Xinhua News Agency.

The remote mountainous villages of Anxi provides good cover for telecom scam syndicates. ST PHOTO: ELIZABETH LAW
“For more than 20 years, the Quanzhou and Anxi police alone have captured tens of thousands of Anxi suspects involved in fraud, and most of them have been sentenced to punishment,” an unnamed police officer told the magazine.
However, village officials say they face an uphill challenge, with many locals drawn in by what appears to be easy money and the luxurious lifestyles sported by their neighbours and friends.
Some individuals go overseas to participate in fraud, the report said, and syndicate members may be relatives or neighbours.
Fujian province has long had a notorious history of being linked to crime, from “snakehead” organisations that used to smuggle people into the United States by boat, to triads in Hong Kong that most recently made the news in 2019 when gangsters fought pro-democracy protesters in North Point, a part of the city known to be their stronghold.

Historically, migrants left Fujian in search of better opportunities overseas, with many leaving through the coastal cities of Xiamen and Quanzhou, sometimes through smugglers who are still active today, said Professor Shui Haigang, head of the department of history at Xiamen University.
“Although there is still forced ‘contract labour’, the largest proportion is still voluntary immigrants for livelihood… quite a few people have been attracted by immigration agents who offer them investment opportunities and other benefits,” he said.
He said that in Anxi, economic migrants constitute 30 per cent of the county’s 1 million population.

In the past decade, telecom fraud has grown rampant in China, prompting the government to pass a law last year allowing the authorities to better crack down on such crimes.
They include telephone impersonation scams, love scams and false promises of jobs.
Between 2017 and 2021, courts across the country tried 103,000 such cases, punishing over 220,000 people, official statistics show, with an eye-watering 35 billion yuan defrauded in 2020 alone.
Last year, there were 464,000 such cases, official figures show, with 351 ringleaders and key members of criminal groups arrested.
Officials estimate that nearly 80 per cent of the perpetrators of such crimes against Chinese nationals are based outside the country, in places like Myanmar, Cambodia and Thailand.
Both national and local authorities have been launching efforts to crack down on fraud, but with criminal gangs growing in sophistication and moving their operations overseas, officials are left trying to play catch up.

During a meeting of judges and prosecutors in the capital last month, a top politician said all resources had to be mobilised against such crimes, which can affect social stability.
“(We) must hit hard illegal and criminal activities such as telecommunication network fraud outside the country and criminal activities within the country,” said the Central Political and Legal Affairs Commission’s head Chen Wenqing, according to an official account of the meeting.
Yet even as the authorities continue to clamp down on such syndicates, cases continue to pop up.
This year, the local authorities in Anxi set up a special unit combating telecommunication and online scams in a bid to speed up the prosecution process, the Anxi People’s Court said in a social media post last week.

As at last Friday, the court had sentenced 144 people in 29 cases involving a total of 1.47 million yuan (S$273,600).
“In the next step… we will vigorously step up taking to trial crimes involving telecommunication network fraud, strengthen the publicity of law to prevent (such) fraud, deepen practical work cracking down on telecommunication network fraud (and) effectively weave a safety net for the prevention of fraud and jointly build a national anti-fraud fortress,” the court said in the post.
For most in the Anxi countryside, what appears to matter is that their lives are now better.
“Look at all the houses that have been built around here, we can have one storey for each member of the family,” said Mr Chen, the owner of the convenience store.
“There has been a lot of hardship and sacrifice… but this would not be possible if people didn’t go out to make their fortune.”

 

[LITTLEREDDOT]

$14m in cash found in home of two accused in billion-dollar money laundering case​

(Clockwise from top left) Su Haijin, Su Baolin, Wang Dehai, Su Jianfeng and Su Wenqiang are among the 10 people charged in the billion-dollar money laundering case. PHOTOS: WHATSAPP, INTERNET, CHINA POLICE WEBSITE

Samuel Devaraj

August 23, 2023

SINGAPORE - At least $14 million in cash was found in the home of two of the 10 people charged in the billion-dollar money laundering case.
The 10 accused appeared via video link at the State Courts on Wednesday to have their cases heard after they were charged on Aug 16.
On Wednesday afternoon, Deputy Public Prosecutor David Koh said the very large sum of cash was found in the residence that Zhang Ruijin, 44, shared with Lin Baoying, 43.
The Chinese nationals, who are not married to each other, were each charged with one count of forgery after they were arrested at a bungalow at Pearl Island in Sentosa Cove.
DPP Koh said several properties and vehicles under Zhang’s name have been seized, and more time was needed to trace the funds and to investigate the assets.
Documents from at least five financial institutions were pending and at least 17 devices have been seized, the prosecutor added.
Lin, the only woman among the 10 accused, had two cars seized, and five properties issued with prohibition of disposal orders, which mean they can’t be sold. They were all listed under her name.

The 10 accused are (clockwise from top left) Su Baolin, Su Haijin, Chen Qingyuan, Su Wenqiang, Lin Baoying, Zhang Ruijin, Wang Dehai, Su Jianfeng, Vang Shuiming and Wang Baosen. ST ILLUSTRATIONS: CEL GULAPA
On Wednesday morning, DPP Edwin Soh said the total value of the assets seized from her was significant, as they were worth $72 million.
He said they needed to determine the source of funds for these properties and cars, and were waiting for bank documents from five financial institutions regarding accounts Lin’s husband has with the banks.
On Aug 16, the police said Zhang allegedly had a foreign passport believed to be issued by Saint Kitts and Nevis, an island nation in the Caribbean.

Lin was allegedly found with foreign passports believed to be issued by Dominica and Turkey. The police said at the time that they had issued prohibition of disposal orders for nine properties and five vehicles with an estimated value of over $106 million.
When they were charged, Zhang referred to Lin and told the court: “You can separate her crimes from me, we are just lovers... You can bail me out but remand her.”
Earlier on Wednesday morning, DPP Ng Jean Ting told the court there was information the accused being investigated in the case were working in a network.
She said this in arguing against bail for Su Baolin, 41, as there may be a need to interview witnesses who are not among the 10 who have been charged so far.
She said there was a risk of contamination of evidence and collusion if bail was granted.

Su Baolin, a Cambodian national, was charged with using a forged document. PHOTO: INTERNET
Su Baolin, a Cambodian national, was charged with using a forged document. He was arrested at a good class bungalow (GCB) in Nassim Road and was allegedly found with a foreign passport believed to be issued by China.
Items including cash of more than $777,000, 33 luxury bags and watches, and 75 pieces of jewellery were seized. The police froze three related bank accounts with a total balance of more than $2.4 million.
DPP Ng said Su Baolin has a congenital heart condition and was warded at Changi Medical Centre (CMC) from Aug 18 to Aug 20.
His lawyer Sunil Sudheesan requested bail to be granted for him, citing health reasons.
“The last thing we want is the accused person to get a heart attack in CMC while under investigation,” Mr Sudheesan said.
But DPP Ng objected, saying there was nothing to suggest his condition could not be handled while in remand.
She had earlier said the application for remand was needed as more time was required for investigations.
DPP Ng said assets seized from Su Baolin and his wife are in excess of $130 million and documents were pending from nine financial institutions and forensic extraction and review of 10 devices were under way.

Industry experts said the luxury items seized in the raids are not easily bought. PHOTOS: SINGAPORE POLICE FORCE
District Judge Terence Tay agreed with the prosecution and denied bail.
He also denied Mr Sudheesan’s request to meet his client before Aug 29 – the date permitted by the prosecution – despite the lawyer’s lengthy submissions on why he should be allowed to do so.
Lawyer Wendell Wong also made similar submissions to meet his client Vang Shuiming, 42, and for his client to get bail, but he, too, had his submissions rejected.
Vang, a Turkish national, who is also known as Wang Shuiming, has been charged with one count of using a forged document.
In Vang’s case, DPP Koh said a number of properties and vehicles have either been seized or issued with prohibition of disposal orders, and there are ongoing checks to determine how they were financed.
Judge Tay denied a request by Mr Wong to meet Vang for 15 minutes, as there would also be time required to bring the accused out from remand, interrupting investigations.

Also appearing in court was Su Baolin’s brother, Su Haijin, 40, a Cypriot national, who has been charged with one count of resisting arrest.
He allegedly committed the offence at a GCB in Ewart Park near Holland Road.
The police said in a statement that during the arrest, officers identified themselves outside his bedroom and ordered him to open the door.
Su Haijin allegedly jumped out of the second-floor balcony and was found hiding in a drain by the police. He fractured his hands and legs due to the jump and was taken conscious to hospital.

Su Haijin was nabbed at a good class bungalow in Ewart Park, near Holland Road. PHOTOS: WHATSAPP, JOYCE FANG
On Wednesday, Judge Tay allowed an application for Su Haijin’s lawyer, Mr Julian Tay, to visit him at Changi General Hospital for 15 minutes to discuss the need for surgery in the presence of an investigating officer.
Mr Tay said his client suffered fractures to his heels, femur and wrists.
Su Haijin asked the court if he could make arrangements for the surgeon to operate on him. Judge Tay said this would be done in consultation with his lawyer and the hospital.
Chen Qingyuan, 33, was the first to have his case heard on Wednesday.
DPP Edwin Soh said Chen had three luxury cars seized, and one property was issued with a prohibition of disposal order.
DPP Soh said they were still tracing the source of funds for these assets valued at around $10 million, and the police were waiting for bank documents to be submitted.
Chen was denied a phone call with his wife. DPP Soh said he could be speaking with her about dissipation of assets and external parties may be involved through his wife.
Su Wenqiang, 31, a Cambodian national, was next, and the DPP said two luxury cars worth $600,000 were seized under his wife’s name.

Cambodian national Su Wenqiang was arrested at a GCB in Lewis Road in Bukit Timah. PHOTO: CHINA POLICE WEBSITE
DPP Soh said the Commercial Affairs Department needed to ascertain the source of the funds for these vehicles, and they were waiting for statements from two financial institutions under his wife’s name.
They had also confiscated five mobile phones and two laptops, which are undergoing review.
Su Wenqiang asked for an earlier date for his next court hearing, saying he would try to cooperate with the authorities.
But Judge Tay did not grant this as the prosecution was still gathering evidence.
Wang Dehai, 34, had properties seized in excess of $49 million, and DPP Ng told the court there was a review of 11 seized devices.

Cypriot national Wang Dehai was charged with one count of money laundering. PHOTO: CHINA POLICE WEBSITE
The Cypriot national was charged with one count of money laundering and was arrested at his condominium in Paterson Hill near Orchard Road.
On Wednesday, he denied his charges.
He told the court: “I’m being illegally detained. I have been in Singapore for five years and I have not done anything unlawful.”
Judge Tay said he could make his defence at a later stage.

Also appearing in court on Wednesday were Su Jianfeng, 35, and Wang Baosen, 31.
Su Jianfeng, a Vanuatu national, was handed a money-laundering charge after he was arrested in a GCB in Third Avenue at Bukit Timah. About $1.4 million in cash and 18 devices were seized from him.
Chinese national Wang Baosen faces a money-laundering charge. Prohibition disposal orders were issued for a property, and a vehicle under his wife’s name and $100,000 in cash were seized.
All 10 accused will return to court on Aug 30.

 

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Court denies requests by accused in money laundering case to speak to family members​

The 10 suspects are (clockwise from top left) Su Baolin, Su Haijin, Chen Qingyuan, Su Wenqiang, Lin Baoying, Zhang Ruijin, Wang Dehai, Su Jianfeng, Vang Shuiming and Wang Baosen. ST ILLUSTRATIONS: CEL GULAPA

Samuel Devaraj

August 23, 2023

SINGAPORE - The flashy clothes were gone as the accused in the billion-dollar money laundering case made court appearances on Wednesday, donning generic red T-shirts typically seen on accused persons.
Several looked visibly tired even as they listened intently to an interpreter explain in Mandarin the proceedings, including the charges they are facing.
For the 10 accused, it was the first time they were meeting their lawyers since their arrest in an islandwide blitz on Aug 15.
Su Haijin, who was in hospital garb with his limbs in casts, appeared on screen from the Changi General Hospital, where he is being treated for injuries after jumping from a second-storey balcony in an alleged attempt to evade arrest.
The 40-year-old Cypriot national, originally from Fujian, China, was arrested outside his residence at 16 Ewart Park.

Su Haijin had jumped from a second-storey balcony in an alleged attempt to evade arrest outside his residence at 16 Ewart Park. PHOTOS: ST READER, ST FILE
His wife and son were in court, accompanied by a man wearing a Balenciaga T-shirt. Su Haijin’s wife, who wore a cashmere Miu Miu cardigan, had engaged lawyers from Lee & Lee to represent him.
In total, the couple are linked to assets valued at more than $160 million, including 18 properties. The assets were seized, frozen or slapped with an order that prevents them from being sold.

On Wednesday, Su Haijin asked to see his family. District Judge Terence Tay allowed it, and he waved to them via his lawyer’s laptop.
Several accused had also asked for access to their family members who were not in court, including Vanuatu national Su Jianfeng, 35, whose lawyer asked if his wife could visit him under police supervision.
Judge Tay rejected the request after Deputy Public Prosecutor David Koh pointed out that Su Jianfeng’s wife is a witness in investigations.
The judge had earlier denied another accused, Chen Qingyuan, a phone call with his wife. DPP Edwin Soh said there was a risk of Chen, 33, giving his wife instructions on dissipation of assets and that external parties may also be involved through her.
The court also denied Zhang Ruijin, who had asked to be released on bail on Aug 16 when the 44-year-old was charged in court, his request to speak to family members on the phone.


While most of the accused nodded in agreement when asked if they understood the proceedings, Wang Dehai, 34, looked agitated.
Claiming he had been illegally detained, the Cypriot national said in Mandarin: “I’ve been here (in Singapore) for five years. I have not done anything wrong.”
The judge replied that he will have an opportunity later to make his defence. Wang did not request to speak to his family members.

 

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Banks’ compliance ‘nightmare’ started even before police raid in billion-dollar money laundering case​

MAS has been collaborating closely with the CAD to identify potentially tainted funds and assets in the financial system and prevent them from being disposed of. ST PHOTO: LIM YAOHUI

Angela Tan
Senior Correspondent

AUG 27, 2023

SINGAPORE - Senior management and compliance teams at major banks in Singapore were scrambling and pulling longer hours even before police arrested 10 foreigners on Aug 15 for alleged money laundering.
Bank officers, who spoke to The Straits Times on condition that they are not identified, said their “nightmare” began before the massive police raid as the authorities had given a list of names to financial institutions for searches, verifications and reviews.
The compliance process was tough as the list was long and featured a web of connections, they added.
“Some names were urgent. The information needed to get back to the authorities as soon as possible or by the next day,” said one bank officer.
Another officer, who had been working overtime before the police raids and even longer hours after, said: “Running checks on the names, and their connections in the bank’s systems and entities overseas, takes time.
“The deadlines were very tight.”
Compliance is a bank’s key line of defence for managing risks. Compliance officers ensure that the bank adheres to regulatory and internal policies.

Citibank Singapore and CIMB Bank are among the institutions used by some of those allegedly involved in the $1 billion money laundering case.
The suspects were arrested and charged with forgery offences and laundering of ill-gotten gains allegedly from their crimes overseas linked to scams and online gambling.
Seven of the 10 were also linked to companies in Singapore. Deutsche Bank is a creditor to a company here whose two directors were among those arrested.

The banks have declined to comment on the case.
Of the 10 arrested, four share the surname “Su”, and three the “Wang” surname. The nine men and one woman, aged 31 to 44, were originally from Fujian but some were holding passports from countries such as Turkey and Cambodia.
“The nightmare continues as you know the police have said there may be more involved in the case,” said the second bank officer, adding that the police were waiting for more bank documents to be submitted.

Even as the court case is ongoing, the Singapore Police Force is waiting for documents from at least 10 financial institutions in its probe.
Another 12 people are helping in the investigations, while eight more people are on the run and have been placed on a wanted list.

The 10 accused are (clockwise from top left) Su Baolin, Su Haijin, Chen Qingyuan, Su Wenqiang, Lin Baoying, Zhang Ruijin, Wang Dehai, Su Jianfeng, Vang Shuiming and Wang Baosen. ST ILLUSTRATIONS: CEL GULAPA

Banks said the scale of the police raid was unprecedented, involving more than 400 police officers from the Commercial Affairs Department (CAD), the Criminal Investigation Department, Special Operations Command and the Police Intelligence Department.
Cash and assets in Singapore worth about $1 billion have been seized, frozen or issued with prohibition of disposal orders, which means they cannot be sold.
Police also issued orders to take control of more than 35 related bank accounts, with an estimated total balance of more than $110 million.
Describing the scale of the investigations, one bank officer drew a parallel with the 1MDB scandal, which involved a massive global probe over billions of dollars misappropriated from the Malaysian state fund.
The 1MDB case involved fraudulent transactions which went through private banks. Institutions including Coutts, UBS, DBS, UOB and Credit Suisse were fined for breaching anti-money laundering rules in transactions related to the fund.
In 2016, two affected institutions, BSI and Falcon Bank, were forced to cease operations in Singapore.

In the current case in Singapore, the Monetary Authority of Singapore (MAS) has been collaborating closely with the white-collar crime busters at the CAD to identify potentially tainted funds and assets in the financial system and prevent them from being disposed of.
It had said it was too early to tell if the banks affected had adhered to stringent controls.
Bankers said that while banks have invested heavily in compliance systems over the years, and have extensive programmes that require them to make full checks on parties they do business with, some “bad eggs” fall through the cracks.
Customer profiling involves gathering information on a customer’s identity, address, occupation, and banking relationships and products used.
To a varying degree, banks may also search media sources to find any possible negative news about the customer that might pose a risk to banks in terms of money laundering or terrorist financing.
Banks may also conduct sanction screening to see if the originator or the beneficiary of funds is on a country’s watchlist.
On the sidelines of a podcast interview with Berita Harian on Aug 21, Mr K. Shanmugam, Singapore’s Minister for Home Affairs and Law, said investigations had been going on for months.
He said the authorities are looking at the case carefully.
Said Mr Shanmugam: “We have been looking at this for months, and we decided to move, and we will be strict with specific types of behaviour. When the facts are out, you will know what types of behaviour.”
He said Singapore does not tolerate money laundering and holds itself to very high international standards.
“Our financial services sector is extremely important for us. It’s 14 per cent of gross domestic product and 200,000 people that are employed there,” he said.
“And we want to make sure that our financial services sector is world-class, good, strong, because a lot of jobs are at stake.”
On money laundering, an officer with a foreign bank said that low crime does not mean no crime.
On what bank officers look out for, he said a sudden change in a customer’s banking pattern is a common red flag, adding that the change could come only after some time, making compliance monitoring a constant cat-and-mouse affair.
The bank officer added: “If people want to manipulate and cheat, they will. We have the systems in place to catch them, but it takes time.
“Eventually, they will be caught.”

 

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Property agents caught up in billion-dollar money laundering case may see commissions ‘clawed back’: Lawyers​

Around 60 real estate agents are suspected to be involved in the sale or rental of properties related to the case. ST PHOTO: DESMOND FOO

Angela Tan
Senior Correspondent

AUG 29, 2023

SINGAPORE – Commissions paid to agents for the sale or rental of property caught up in the $1 billion money laundering case could be clawed back, say lawyers.
The process would be a legally complex one and would rest on how much knowledge an agent had when a property transaction was under way.
“Whether the commissions paid can be clawed back will depend on all the circumstances, including whether the agents are complicit in any crime,” said Mr S. Suressh, chairman of the anti-money laundering committee of the Law Society of Singapore.
Ms Gazalle Mok, a partner in Rajah & Tann Singapore’s corporate real estate practice, said agents who participate in a property deal when there are “reasonable grounds” to believe that it would benefit criminal conduct could face criminal charges under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992.
Agents would have to show that they did not know or did not have any reasonable grounds to believe that the arrangement was related to crime proceeds, she added.
They must also show that they intended to file a suspicious transaction report but failed to do so because there was a “reasonable” excuse.
If the affected person is an employee, he must show that he had disclosed the matter to an appropriate person in accordance with company procedure.

About 60 real estate agents are suspected to be involved in the sale or rental of properties related to one of Singapore’s biggest money laundering cases, where 10 foreigners were arrested on Aug 15 in an islandwide raid that involved around 400 law enforcement personnel.
Orders that prohibit disposal have been placed on 105 properties, estimated to be worth $831 million. These are owned by those arrested or people wanted by the police, their spouses or related companies.
The properties include seven bungalows in Sentosa Cove, 79 condominium units, including 19 under construction, and 19 commercial or industrial spaces.

Chinese media reported that one of the 10 suspects arrested is believed to be a Chinese buyer who snapped up 20 units at Canninghill Piers in Clarke Quay for an estimated $85 million in May 2022.
CapitaLand Development and City Developments, the joint developers of the luxury residential project by the Singapore River, declined to comment.

One of the suspects is believed to be the buyer who snapped up 20 units at CanningHill Piers in Clarke Quay in May 2022. PHOTO: CAPITALAND/CITY DEVELOPMENTS
When sale bookings started in November 2021, indicative prices started at $1.16 million for a one-bedroom unit and $5.22 million for a four-bedder, while a five-bedroom premium unit from level 25 and higher started at $8.1 million.
The “super penthouse” on level 48, with panoramic views of the city and the riverfront, had an indicative price of $50 million and was eventually sold for $48 million.
The project’s marketing agents are ERA, PropNex, Huttons, OrangeTee & Tie and Singapore Realtors.
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Most of them either declined to comment or have not responded to media queries, although Huttons Asia chief executive Mark Yip noted that property agents are legally obliged to conduct a background check on customers before a deal can proceed.
“The checks include name, date of birth and nationality. There is no foolproof way as documents can be forged,” he added.
He said any deal flagged as dodgy must be reported to the firm’s legal and compliance department, which would then help file a suspicious transaction report on the agent’s behalf. Red flags include overpaying for a property or using large amounts of cash.
Property agents told The Straits Times that they have been asked for “kickbacks” from people who viewed units on behalf of actual buyers.
Some agents have also received many e-mail requests from overseas customers looking to buy properties here.
In 2018, an agent was fined $10,000 for failing to file a suspicious transaction report involving a $23.8 million bungalow in Sentosa Cove that he handled.
Mr Tan Yen Hsi, who was a senior marketing director of CBRE Realty Associates at the time, did not alert the police that the money used to buy the Lakeshore View property could have been the proceeds from crime.
The buyer, Zhang Min, the former president of China-based Yucheng International Holdings Group, was arrested in China in early 2016 over her role in a $10.8 billion “ponzi” scheme.
The Council for Estate Agencies (CEA), which regulates Singapore’s real estate agency industry, said last Friday that it is investigating property agents who might have facilitated property transactions relating to the latest money laundering case.

Since the implementation of the full requirements for due diligence kicked in on July 30, 2021, there has been one disciplinary case against a property agent here for breaches.
In July, a property agent was fined $4,000 and given a four-month suspension by a CEA disciplinary committee for failing to obtain, document and verify the accuracy of her client’s identity information. The agent also failed to do a risk assessment on whether her client engaged in money laundering or the financing of terrorism.
CEA has a list of suspicious indicators to help property agencies prevent money laundering and terrorism financing.
This checklist includes verifying a customer’s particulars and documents, including authorisation letters or documents related to power of attorney, if the customer is acting on behalf of someone else. If the latter is not provided, agents must not deal with the customer and should lodge a suspicious transaction report if there is suspicion of money laundering or terror financing activity.
If the customer is a company or trust, agents must understand the nature of the business, ownership and control structure of the entity. They must also verify the identity of each beneficial owner or owners – their names, dates of birth, nationalities and occupations, among others.
Property agents must keep records of their customer due diligence measures for a minimum of five years.
Those who fail to comply with regulations may face CEA disciplinary action, which could include fines of up to $200,000 per case for an agency and up to $100,000 per case for an agent, who could also have his registration revoked or suspended.

 

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Billion-dollar money laundering probe widens to include precious metals; 24 more suspects named​

Some of the jewellery and cash seized in the $1 billion money laundering probe. PHOTO: SINGAPORE POLICE FORCE

Zaihan Mohamed Yusof
Senior Crime Correspondent

AUG 29, 2023

SINGAPORE - A wider net has been cast in the $1 billion money laundering probe, with the Ministry of Law (MinLaw) sending out a notice to dealers of precious metals and stones with the names of 34 individuals who could be linked to suspicious transactions.
The list of names included the 10 foreigners who were charged in court on Aug 16 with various offences including forgery and money laundering.
The notice was sent on Sunday to the dealers by the Anti-Money Laundering/Countering the Financing of Terrorism Division of MinLaw.
The dealers were told to review “transactions and business relations to assess if there are any reasonable grounds to suspect criminal conduct, including money laundering in connection to the police investigation”, according to the MinLaw notice that The Straits Times saw.
Mr Mohamed Bilal, president of the Gem Traders Association of Singapore, said when it gets such notices, it immediately shares them with its 26 members to help with investigations.
“Aside from an advisory to look out for suspicious transactions, there were a total of 34 names, some of which showed they were nationals of Cambodia, Turkey and Cyprus,” said Mr Bilal.
The police had launched an islandwide blitz on Aug 15, which saw them take control of more than 250 luxury bags and watches, over 270 pieces of jewellery and two gold bars, among other assets.

In total, they seized, froze or issued orders to block the sale of about $1 billion in assets, including 105 properties, cars, cash and luxury goods.
They also arrested 10 people. Twelve others are helping with investigations, while eight other individuals are on the run.
In the e-mail, MinLaw drew links between the 34 suspects, saying they are “believed to have connections among themselves”.

“Through extensive investigations and follow-up, including the analysis of suspicious transaction reports (STRs), the police identified a group of foreign nationals suspected to be involved in laundering the proceeds of crime from their overseas organised crime activities,” said MinLaw in the e-mail.
It added that all the people involved are neither Singapore citizens nor permanent residents.

Wanted in China​

The list included four individuals who are on China’s wanted list for their alleged links to illegal gambling activities uncovered in 2015, 2017 and 2022.
It also included the name of one suspect who was listed as a shareholder of an investment company in Singapore, where one of the accused charged in court was a director.
The precious metal and stones dealers were urged to file an STR and reference Project Cerulean in their report.
The Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act, which has been in effect since 2019, establishes a regulatory regime for precious stones and precious metals dealers.
On its website, MinLaw says the sector is exposed to inherent money laundering and terrorism financing risks due to the characteristics of precious stones and metals, and other precious products.
They “are good stores of value, easily transported and concealed, and easily converted to cash”.
Precious stones include diamonds, sapphires and pearls, while precious metals include gold, silver and platinum.
MinLaw says the sector is exposed to the risk of money laundering and terrorism financing as the precious metals and stones “are good stores of value, easily transported and concealed, and easily converted to cash”.

 

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Golf club managers to meet over money laundering concerns amid $1 billion probe​

Five of the 10 foreigners arrested in the recent anti-money laundering blitz are members of Sentosa Golf Club (above). ST PHOTO: ONG WEE JIN
David Sun and Osmond Chia

AUG 29, 2023

SINGAPORE – The Singapore Golf Association (SGA) has called for a meeting with managers of golf clubs and their compliance officers over money laundering concerns in the sector.
The meeting on Wednesday at the Singapore Island Country Club is to discuss the clubs’ risk of exposure to racketeering and other criminal activities.
The Straits Times (ST) has reported that five of the 10 foreigners arrested in a recent anti-money laundering blitz, in which police took control of more than $1 billion in assets, are members of Sentosa Golf Club. Several other individuals with links to those arrested are also members of the club, which has seen record prices for membership.
In the invitation to the clubs, the SGA said: “With the increasing economic significance of golf, alongside various other sports, there has been a substantial surge in financial investment within this sector.
“Unfortunately, a portion of this investment has become associated with criminal elements.”
Speakers at the event will address money laundering trends, exploitative tactics and risks that are specific to the golfing scene. They will also tackle measures that communities can take to protect themselves against money laundering.
The panellists include lawyers Sharon Chong and Chng Li Ling from RHTLaw Asia and Mr Kannan Chettiar, co-founder of human resource technology firm Avvanz, which specialises in background screening.

Golf clubs typically limit their number of members, but most memberships can be traded like a commodity. Membership at golf clubs here starts at several thousands to hundreds of thousands of dollars.
Sentosa Golf Club is among the most expensive here, and can cost locals about $580,000 and foreigners up to $990,000, according to club membership broker Active Golf Services.
On its website, the club said that it has more than 1,600 members, who receive exclusive benefits, including access to two golf courses, major golf and club events and other facilities.

A Sentosa Golf Club spokesman said the club is committed to cooperating fully with the local authorities throughout the course of their investigation, but declined to comment further at this time.
In the Aug 15 raid, police took control of assets, including gold bars, about 50 vehicles, more than 250 handbags, watches worth millions of dollars and other luxury goods. Orders have also been issued to block the sale of more than 100 properties linked to the case.

The 10 suspects – aged between 31 and 44 – have been charged in court with various offences, including forgery, money laundering and resisting arrest. They hold passports from places such as China, Cambodia and Cyprus.
Another 12 are assisting with the investigation, while eight others are on the run and have been placed on a wanted list as at Aug 19.
More than 400 law enforcement officers were involved in the operation, which was conducted in exclusive enclaves like Bukit Timah, Sentosa and Orchard Road.
The SGA said it has received confirmation that representatives of golf clubs here will attend the event, but its spokesman did not say how many will be there.
There are 11 golf clubs listed as full SGA members. Checks by ST did not show links between other golf clubs and the 10 suspects.
Asked for its reaction to the invitation, an SGA-affiliated golf club said it would have a better idea of sentiments after the event.

 

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Singapore’s banking giants embroiled in billion-dollar money laundering case​

DBS and OCBC's Bank of Singapore are among creditors to investment companies linked to suspects arrested and charged earlier in August. PHOTO: LIANHE ZAOBAO

AUG 30, 2023

SINGAPORE - Some of the biggest local and international banks in Singapore are becoming embroiled in one of the country’s largest money laundering cases.
DBS Group Holdings, Singapore’s largest lender, and Bank of Singapore, the private banking arm of OCBC Bank, are creditors to investment companies linked to individuals arrested and charged earlier in August in a major money laundering scandal involving over $1 billion of assets, according to business filings seen by Bloomberg News.
One of the accused also tried to cheat Standard Chartered Bank with fake documents, according to a court hearing in Singapore on Wednesday.
The banks join a list of financial institutions – including Malaysia’s CIMB Bank, Citigroup’s local subsidiary and Deutsche Bank – to be linked to the suspects in the alleged money laundering ring.
Prosecutors have said that they are seeking documents from at least 10 financial institutions in relation to the case, although they were not named.
Beyond the banks, property agents, precious metals dealers and golf clubs in Singapore have also been drawn into the scandal. This has raised questions about guard rails against illicit money flowing into the financial hub.

Bank links​

In a filing, DBS registered four charges – generally referring to a form of security interest usually taken by a lender to secure repayment of a loan – on Aug 18, 2021 for Aiqinhai Investment.

The company’s director and sole shareholder Su Haijin is among the 10 individuals who have been indicted in a Singapore court for offences including money laundering and forgery.
Bank of Singapore registered a charge on Jan 7, 2022 for Xinbao Investment Holdings. One of the company’s two directors is Su Baolin, who is also among the individuals charged.
A spokesman for DBS said the lender will continue its work “to make Singapore a place where criminals cannot find harbour”, though there was no comment on specific names.

OCBC declined to comment, while StanChart, which Su Baolin allegedly tried to cheat, did not immediately respond to a request for comment.
Both the investment companies linked to DBS and OCBC have listed office addresses in the business district, while the two accused directors have upscale residential addresses.
The banks’ facilities are secured against “all monies” at the companies, according to the filings, which did not specify the size of the exposures.
Before this case, Singapore was rocked by scandals involving huge money flows in Malaysia’s state fund 1Malaysia Development Berhad and German payments company Wirecard. These blow-ups have led to financiers being banned, people being jailed or banks getting slapped with fines for inadequate controls.
Singapore has been moving to try to curb illicit flows as the country gains in stature as a key financial and wealth hub. In May, Parliament passed a Bill that paved the way for banks to share information on potentially risky clients.
The Monetary Authority of Singapore, when asked by Bloomberg News for comment, referred to its earlier statement where it said the regulator is undertaking supervisory engagements with financial companies where potentially tainted funds have been identified. And it will take “firm action” against those found to have breached anti-money laundering and related rules.

More charges​

Some of the 10 individuals were on Wednesday charged with more offences in court, where hearings were ongoing throughout the day for all of them.
The additional charges are related to money laundering and forgery. Prosecutors said the accused are wealthy and have overseas assets. BLOOMBERG

 

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Forum: Lawyers must conduct due diligence on clients and transactions​

SEP 1, 2023

We refer to the letter, “Do lawyers need to know client’s fund sources?” (Aug 28).
As a preliminary matter, as the recent money laundering case in question is the subject of ongoing court proceedings, it is not appropriate for the Law Society of Singapore to comment on this case specifically.
As a general observation, regarding lawyers’ duties to conduct due diligence, in appropriate cases, lawyers must perform due diligence concerning their client and the transaction on which they are engaged.
The due diligence on the client requires the lawyer to, among other things, ascertain and verify the identity of the client, and understand the nature of the client’s occupation or business.
The due diligence on the transaction requires the lawyer to ensure that the transaction is consistent with the lawyer’s knowledge of the client, the client’s occupation or business, and, where appropriate, the source of funds for the transaction.

Goh Wan Cheng
Director
Membership and External Relations
The Law Society of Singapore