Were there red flags in $2.8b money laundering case? Josephine Teo says investigations started in early 2022

In early 2022, the police launched a "comprehensive and coordinated" intelligence probe that uncovered the largest money laundering case in Singapore, said Josephine Teo in Parliament on Tuesday (Oct 3).

In her ministerial statement, the Second Minister for Home Affairs told the House that the authorities acted after receiving tip-offs on suspicious activities in 2021.

These "disparate information" include the use of suspected forged documents to substantiate sources of funds and bank accounts in Singapore, Teo said.

Only a small group of officers took part in initial investigations to avoid alerting the suspects.

"The probe uncovered a web of individuals believed to have connections amongst themselves, including through familial ties," Teo said.

This led to an anti-money laundering operation on Aug 15, when the police conducted raids on several Good Class Bungalows, condominiums and landed property.

10 foreigners, aged between 31 and 44, were arrested. They are either Chinese nationals or former Chinese nationals, with some of them holding multiple passports from other countries.

The value of the assets seized or frozen in the money laundering case have now snowballed to over $2.8 billion. The assets include cash, 68 gold bars, 164 luxury watches, 152 properties and 62 luxury cars among others.

[[nid:648836]]

As the police continue to investigate the case, the minister said that there may be more arrests and assets seized.

This is not only Singapore's biggest anti-money laundering operations but also likely to be one of the largest in the world, Teo said.

In September, Members of Parliament (MP) filed more than 30 questions on this issue and Minister of State for Home Affairs Sun Xueling told Parliament at the time that these queries would be addressed comprehensively in a ministerial statement.

For Tuesday's sitting, more than a dozen questions on the topic were filed, including whether there were "red flag indicators" before the arrests were made, and whether there will be tighter anti-money laundering measures

Teo, along with Minister of State for Trade and Industry Alvin Tan and Second Minister for Finance and National Development Indranee Rajah, delivered ministerial statements on Singapore's anti-money laundering regime.

'We had to be very discreet': Teo

As for whether there were red flag indicators before any arrests were made, Teo said that the aim of the police probe back then was to develop as a full picture as possible of the suspects and their associates before making any move against them.

"A decision was made to hold off any enforcement or overt investigative actions," she added.

Highlight the complexity of anti-money laundering probes of this scale and nature, Teo said: "As the probe progressed, the web uncovered by the police grew and grew.

"More and more individuals were implicated in the alleged money laundering operation and more and more of the assets held in Singapore were discovered. Police painstakingly and discreetly traced the ties and assets."

"Connecting the dots between people and things is a lot easier said than done. We also had to be very discreet.

"Had the suspects caught wind of our probe, they might have fled with their assets and the investigations and the entire operation might have been jeopardised," she explained.

Earlier this year, the police consulted the Attorney-General's Chambers and the latter assessed that there was sufficient reason to suspect that criminal offences had been committed in Singapore.

"The police moved decisively against the suspects on Aug 15 this year," she said, while adding that it is "completely untrue" that the operation was carried out at China's behest.

"Singapore does not need another country to tell us what to do to enforce our laws, nor will we do anything unless it is in our own interests."

Noting that Singapore is an attractive place for investments and businesses, Teo said that the government will continuously review its practices even with stringent anti-money laundering measures.

But she added that the realistic aim is not to expect no "dirty money" will ever come in since that will inevitably affect legitimate investments and businesses.

"Instead, we must have the capability to detect wrongdoings, and when we do, have the resolve to act decisively and robustly," said Teo.

"Zero tolerance of money laundering does not mean zero occurrence."

ALSO READ: 'We are just lovers... Remand her': Details of money laundering case emerge in court as 10 charged

chingshijie@asiaone.com