About 60 real estate agents in Singapore involved in sale of properties in S$1 billion money laundering case

Approximately 60 real estate agents in Singapore are believed to be implicated in the sale of properties linked to ten individuals arrested during a nationwide money laundering operation that uncovered more than S$1 billion in cash, items, and assets, according to a report by Lianhe Zaobao on August 18. These agents are expected to assist with ongoing investigations.

The report indicated that one of the suspects arrested is a Chinese buyer who purchased 20 units at CanningHill Piers in Clarke Quay for an estimated S$85 million in May 2022. Additionally, it was noted that Su Baolin, one of the individuals arrested, had acquired a sea-facing bungalow in Sentosa Cove for just over S$39.33 million in April 2021. Su, who is originally from Xiamen, Fujian Province, holds Cambodian citizenship and has interests in two Singapore-registered companies—one in software development and the other in e-commerce.

Agents Required to Conduct Due Diligence
The Council for Estate Agencies (CEA) mandates that real estate agents conduct due diligence checks on clients to prevent money laundering and terrorism financing. Full due diligence requirements were implemented on July 30, 2021. These measures include a checklist for due diligence, a list of suspicious indicators based on client behavior, and verifying client details against international databases, such as the Panama Papers.

Agents must perform customer due diligence before establishing any business relationship and are required to retain records of these measures for at least five years. Additionally, they are legally obligated to report any suspicious transactions or activities to the Commercial Affairs Department. For instance, a warning sign prompting an agent to file a suspicious transaction report could be if a client hesitates to sign documents that connect them to the property.

For property developers, full due diligence requirements against money laundering and terrorism financing were enforced starting June 28, 2023.

Details About the Suspects
The ten suspects, allegedly part of a transnational money laundering syndicate, are primarily from Fujian, China, with three still holding Chinese citizenship. Ranging in age from 31 to 44, they are said to belong to a “Fujian Gang,” which once had “hundreds” of members in Singapore. In a statement on August 16, the police reported that 12 other individuals are assisting with investigations, while eight additional persons are currently wanted by authorities. Notably, none of the individuals involved are Singapore citizens or permanent residents.