Singapore money laundering scandal linked to China
A recent raid by a money laundering gang in Singapore that resulted in the arrest of ten people has become an international incident. The gang laundered money linked to illegal online gambling. Ongoing investigations have revealed strong links to criminal elements in China and Singapore.
While authorities arrested nearly a dozen people, others escaped or have yet to be identified. Investigators reportedly found that some of them owned 23 luxury apartments in South Beach Residences, a large residential complex in Singapore.
According to reports, these real estate transactions may be conducted behind shell companies registered in places such as Malaysia, Hong Kong and the British Virgin Islands to conceal their true owners. Many of them are Chinese citizens and may now face property damage.
A port for laundering millions
In September 2018, the upcoming South Beach Residences attracted a lot of attention for the luxury it brings. Many units were eventually sold to Chinese nationals, many of whom paid cash without raising any red flags.
One of the buyers, a Chinese national, purchased a penthouse for S$26 million ($19.2 million), local media reported. He paid the entire asking price in cash, without conducting any verification of the source of the funds before selling.
Chinese buyers purchased about 25 apartments in three months, paying astronomical prices of S$3,000 ($2,215) per square foot. With prices ranging from SGD 6 to 8 million (USD 4.4 to 5.9 million), the exclusivity of these properties is undeniable.
Fast forward to October 2021, and an unidentified Chinese billionaire has raised the bar without raising any money laundering warnings. He bought a luxurious three-bedroom home for a record S$18.5 million (US$13.66 million).
Since Chinese President Xi Jinping launched an anti-corruption campaign in 2012, Chinese citizens have successfully evaded pursuit by the Chinese government and law enforcement agencies. They are working hard to find new homes for themselves across Southeast Asia, including Singapore, and are looking for safe locations to protect and legitimize their assets.
This growth is driven by a vast network of lawyers, real estate experts, and local and foreign financial institutions. The investigation has now shed light on their actions and demonstrated how they orchestrated the path to fake funds and completed real estate transactions with the help of sympathetic middlemen.
Singapore faces new challenges
With the help of unknown private bankers and possibly other private individuals, the super-rich discreetly moved funds from China to Singapore. They all allegedly circumvented anti-money laundering regulations in exchange for huge bribes.
The lure and greed of working in the banking industry leads many people to violate anti-corruption laws. As a result, this phenomenon is widespread among banks in Southeast Asia, jeopardizing the overall integrity and reputation of banks as people breach anti-money laundering measures.
In Singapore, a private banker who was a major source of laundered illegal Chinese funds was reported by his own bank's intelligence officers. However, according to news reports, he was undeterred by the incidents and continued with his business.
Although the bank fired him, he was not prosecuted. He continued to use his qualifications and licenses to conduct business under the name of a new financial advisory organization.
Although he has evaded criminal punishment for two years, the fallout from the new money-laundering scandal could have an impact. Singapore reacts more strongly to the continued embarrassment and is likely to do whatever it can to improve its image.
The Singapore Council of Real Estate Agents is reportedly offering help. State real estate regulators are currently investigating its licensed members to determine whether they participated in a money laundering scheme.
Last year, the Financial Action Task Force (FATF) appointed T Raja Kumar, the former director-general of the Singapore Casino Regulatory Authority, as its new chairman. His findings could be crucial to the ongoing investigation.
Some authorities believe the money-laundering ring may be linked to the junket junket sector, which has been severely weakened in Macau. If this is true, the scale of the case will be much larger than anyone imagined.
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Source: www.casino.org
