SINGAPORE: Some of the biggest local and international banks in Singapore are becoming embroiled in one of the city-state’s largest money laundering cases involving over S$1 billion (US$740 million) worth of assets.
In charge sheets seen by Bloomberg News, some of the individuals who were arrested and charged this month held funds totalling millions from unlicensed moneylending in China and illegal gambling in United Overseas Bank and the local units of Citigroup and RHB Bank.
They also tried to cheat banks Oversea-Chinese Banking Corp, Standard Chartered and CIMB Bank using fake documents, the charge sheets allege.
The wide roster of banks join property agents, precious metals dealers and golf clubs in the city-state that have been drawn into the scandal. This has raised questions about the strength of measures against illicit money flowing into one of the world’s most important financial hubs.
The accused allegedly used their criminal proceeds to buy luxury cars, Tether stablecoins and in one case, an upscale condominium unit near the city’s prime shopping belt for S$23 million, the charge sheets show. Some also allegedly had millions in safe deposit boxes held with Certis Cisco Security Pte, a firm backed by the state investor Temasek Holdings.
Most of the 10 people arrested were charged with more offences on Wednesday in court. Authorities have earlier said they are seeking documents from at least 10 financial institutions in relation to the case, although they were not named.
Singapore has been rocked by scandals in the past involving huge money flows from the Malaysian state fund 1MDB and the German firm Wirecard. Those blow-ups led to financiers being banned, people jailed and banks slapped with fines for inadequate controls.
In May, Singaporean lawmakers passed a bill that paved the way for banks to share information on potentially risky clients.
Separately, DBS Group, the country’s largest bank, and Bank of Singapore, the private-banking arm of OCBC, are both creditors to investment firms linked to two accused individuals, according to business filings seen by Bloomberg News.
In the filing, DBS registered four charges — generally referring to a form of security interest taken by a lender to secure repayment of a loan — on Aug 18, 2021 to Aiqinhai Investment Pte. The firm’s director and sole shareholder, Su Haijin, is among the 10 people who have been indicted in a Singapore court for offences including money laundering and forgery.
Bank of Singapore registered a charge on Jan 7, 2022 for Xinbao Investment Holdings Pte. One of the firm’s two directors is Su Baolin, who is also facing charges.
Both the investment firms linked to DBS and Bank of Singapore have listed office addresses in Singapore’s business district, while the two accused directors have residential addresses in upscale properties. The banks’ lending facilities are secured against “all monies” at the companies, according to the filing, which did not specify the size of the exposure.
A spokesperson for DBS said the lender would continue its work “to make Singapore a place where criminals cannot find harbour”, but did not comment on specific names.
A Citi spokesperson said the bank had been working with authorities to strengthen and protect the integrity of the financial system, adding it is committed to ensuring the highest standard of governance and controls. OCBC declined to comment. Standard Chartered, RHB, CIMB and Certis Cisco did not immediately respond to requests for comment.
Su Haijin and Su Baolin are both in remand. Su Baolin’s lawyers declined to comment while Su Haijin’s attorneys did not immediately respond to a request for comment.
The Monetary Authority of Singapore, when asked by Bloomberg News for comment, referred to its earlier statement where it said it was undertaking “supervisory engagements” with financial firms where potentially tainted funds have been identified.
The central bank said it would take “firm action” against those found to have breached anti-money laundering and related rules. The police did not immediately respond to a request for comment.