3 charged in Singapore AML scandal, including 2 bankers

On August 15, two former bank executives were charged for their alleged involvement in Singapore’s largest money laundering case.

Wang Qiming and Liu Kai, of Citibank and Julius Baer respectively, were the first financial professionals to be caught up in the scandal.

Another man, who was a driver for a businessman involved in the case, was charged. The businessman, Su Binghai, fled the jurisdiction. His whereabouts are unknown.

10 convicted, others on the run

To date, 10 people have been convicted of laundering billions of dollars in proceeds from crimes including illegal online gambling.

A total of S$3 billion (£1.764 billion/€2 billion/$2.3 billion) in dirty money was funneled through 16 Singaporean banks. About S$1 billion in cash and assets were also seized, including luxury real estate, vehicles, jewellery, handbags and watches.

So far, all of the convicts have been identified as Chinese nationals from Fujian Province. The sentences in the case range from 13-17 months in prison.

Authorities are still searching for at least 17 suspects who remain at large in the case.

Singaporean banking system infiltrated

The scandal undermined Singapore’s reputation as a compliant-free financial jurisdiction with strict anti-money laundering policies.

The city-state is a member of the global Financial Action Task Force, which monitors countries for money laundering risks. It co-chairs the FATF’s Policy Development Group, which helps develop standards for other markets. Singapore is also a member of the Asia/Pacific Group on Money Laundering. And it works with international financial crime prevention organizations, such as the Egmont Group and INTERPOL.

According to the Ministry of Finance’s 2024 Money-Laundering Risk Assessment, Singapore remains at high risk of “foreign fraud, particularly cyber fraud”.

“This threat has been exacerbated by advances in digitalisation,” the report said. Online portals “enable syndicates to … cross borders to launder their ill-gotten gains.

“Another significant ML threat Singapore faces comes from foreign organized crime, and in particular illegal online gambling,” the report said. In the 2023 case, it added, “several of the accused” benefited from “illegal online gambling from foreign organized crime groups.”

Tightened casino controls

Singapore recently tightened its financial controls with the Anti-Money-Laundering and Other Matters Bill, which was passed on August 6. An amendment to the Casino Control Act allows gaming operators to share customer data to detect suspicious transactions more quickly.

The bill also updates customer due diligence (CDD) requirements to help detect and prevent financial crimes.

Previously, these cheques were activated when customers made single cash transactions of S$10,000 or more, or deposited S$5,000 or more into an account. The threshold has now been lowered to S$4,000 for both cash transactions and deposits.

Singapore has two multi-billion dollar casino resorts: Resorts World Sentosa and Marina Bay Sands.

Singapore still attractive to criminals

Ironically, criminals are attracted to Singapore because of its reputation as a banking centre and its good reputation within the global community.

“Singapore is inevitably exposed to (transnational money laundering) threats,” said a June report by the Singapore Monetary Authority. “It is targeted by “criminal syndicates and professional criminal elements seeking to launder… illicit funds from overseas.”