Were There Warning Signs in the $2.8 Billion Money Laundering Case? Investigations Began in Early 2022, Says Josephine Teo

In Parliament on Tuesday (Oct 3), Second Minister for Home Affairs Josephine Teo revealed that Singapore’s largest money laundering investigation, now valued at over $2.8 billion, began as early as 2022. The probe was launched following reports of suspicious activities in 2021, involving suspected forged documents linked to funds and accounts in Singapore.

Teo explained that, initially, a small team of officers conducted the investigation to maintain secrecy and avoid tipping off suspects. Through meticulous efforts, authorities discovered connections among suspects, including familial ties. This intelligence gathering led to an extensive anti-money laundering operation on August 15, during which police conducted raids on Good Class Bungalows, condominiums, and landed properties. Ten foreign nationals aged 31 to 44, primarily former Chinese nationals, were arrested. The operation also led to the seizure of assets, including cash, luxury cars, and properties, valued collectively at over $2.8 billion.

The discreet nature of the investigation, Teo noted, was essential for success. “Connecting the dots between individuals and their assets was complex, and we had to be very discreet,” she said, explaining that premature actions could have allowed suspects to flee with their assets, jeopardizing the operation.

Responding to questions on Singapore’s anti-money laundering efforts, Teo emphasized that stringent measures are already in place, though the realistic goal isn’t to prevent all illegal funds from entering but rather to ensure effective detection and decisive action. “Zero tolerance of money laundering does not mean zero occurrence,” she stated, underscoring the need to balance enforcement with Singapore’s investment-friendly environment.

In her statement, Teo also addressed speculation that Singapore acted on external influence, asserting, “Singapore does not require another country’s guidance to enforce our laws.” Alongside Teo, Ministers Alvin Tan and Indranee Rajah highlighted Singapore’s commitment to bolstering anti-money laundering practices, ensuring a robust response to complex financial crimes.