A total of 32 questions have been filed by Members of Parliament (MPs) from the People’s Action Party (PAP), Workers’ Party (WP), and Progress Singapo
A total of 32 questions have been filed by Members of Parliament (MPs) from the People’s Action Party (PAP), Workers’ Party (WP), and Progress Singapore Party (PSP) concerning Singapore’s recent S$1 billion money laundering case involving the arrest of 10 foreign nationals. Minister of State for Home Affairs Sun Xueling announced that the questions will be addressed jointly by the Home Affairs Ministry and other ministries in a ministerial statement in October.
Are Singapore’s Laws Adequate?
The questions submitted explore how such a major case could occur under Singapore’s “robust” regulatory framework. MPs questioned the effectiveness of current protocols across government agencies and financial authorities, how suspicious transactions are detected, and what improvements are planned. Specific inquiries included the number of recent money laundering cases exceeding S$500 million, whether Singapore’s reputation as a wealth management hub is at risk, and regulations governing real estate purchases by foreign nationals.
One MP raised questions regarding the Singapore Land Authority’s (SLA) due diligence in assessing foreign buyers’ links to suspicious activities and the criteria used to permit purchases of landed properties based on perceived economic contributions.
Case Recap
Arrests and Seizures on August 16:
On August 16, 2023, nine men and one woman were arrested after islandwide police raids uncovered over S$1 billion in assets, including properties, luxury cars, and goods. The suspects comprise nationals from Cambodia, China, Cyprus, Turkey, and Vanuatu. During the arrest, one suspect, Su Haijin, reportedly jumped from a second-story balcony to evade capture and was later found injured and hiding in a drain.
According to the Monetary Authority of Singapore (MAS), the Commercial Affairs Department (CAD) was alerted to suspicious financial activities through intelligence gathered from transaction reports filed by financial institutions. Indicators triggering these reports included unusual fund flows, questionable documentation of wealth sources, and inconsistencies in information provided.
Additional Suspects Identified on August 27:
On August 27, the Ministry of Law’s Anti-Money Laundering/Countering the Financing of Terrorism Division (ACD) identified 24 more suspects, including the wives of two initial suspects, bringing the case’s total to 34 individuals, all of whom are foreign nationals. Of these, 12 are assisting with investigations, eight remain wanted, and four are unidentified.
High-Risk Citizens and Real Estate Purchases
Seven of the initial 10 arrested suspects hold passports from OECD-designated “higher-risk” countries, including Cyprus and Turkey, which grant citizenship by investment and have contributed to concerns over anti-money laundering efforts. Since 2016, individuals from these “high-risk” nations have purchased at least 232 residential units in Singapore. Among them, suspect Su Haijin reportedly purchased a unit at Gramercy Park on Grange Road for S$4.5 million in 2018.
Singapore’s ministries of Finance, Manpower, and Social and Family Development are expected to address these issues in October, discussing plans for enhancing oversight and prevention measures in light of this high-profile case.
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