Buyers and ultimate beneficial owners of all landed residential property transactions, including those of good class bungalows (GCB), are required to disclose their identities and citizenship.
"This is regardless of whether a caveat is lodged for the transaction, and regardless of whether the purchase is made by an individual, an entity, or through a vehicle such as a trust or company, including a shell company," said the Ministry of Law on Monday (Dec 23).
As part of the sale process for landed homes, including GCBs, the Singapore Land Authority requires buyers to declare their identities and citizenship when lodging the instrument of transfer at the Land Titles Registry, it added.
The ministry was responding to media reports published two weeks ago.
Bloomberg, The Edge Singapore, The Independent Singapore and The Online Citizen had reported that there are no publicly available government records of GCB sale transactions if caveats were not lodged.
They also said that the ultimate beneficial owner's identity need not be disclosed to the government in GCB deals carried out through a trust arrangement or shell company, thus allowing parties, including ministers and rich migrants, to transact such properties "in a way facilitative of money laundering".
The reports also assert that GCB deals could be carried out without any checks by the government on the identities.
[[nid:712556]]
They also noted that property agents and other service providers are primarily responsible to combat money laundering in home sales.
"These false statements attack the transparency of property transactions in Singapore," said the Ministry of Law.
It added: "These falsehoods give the impression that Singapore does not have a robust legal framework to require disclosure of information to the government in GCB transactions, which may allow wrongdoing to take place undetected."
Information on property ownership and transfers, including those of GCBs, are available on the Integrated Land Information Service portal - regardless of whether a caveat was lodged, said the ministry.
It also said caveats are not intended for tracking property transactions or ensuring transparency. Instead, they are meant to protect the interest of the purchaser, mortgagee or other parties who have legal rights in the property.
The ministry also noted that regulated gatekeepers involved in property transactions need to comply with anti-money laundering requirements. This includes verifying customers' and beneficial owners' identities.
Gatekeepers must also verify the sources of wealth of their customers when higher risks are involved in a deal, said the authority.
Edwin Tong, minister for culture, community and youth and second minister for law, has instructed the Protection from Online Falsehoods and Manipulation Act Office to issue a correction direction to the media companies.
The correction notices require the media companies to state that their articles contain false and misleading information, as well as provide a link to the government's clarification.
This article was first published in The Business Times. Permission required for reproduction.
