Singapore’s authorities ‘ handling of the recent S$ 3 billion money laundering case, according to Prime Minister Lawrence Wong on Wednesday ( Jun 26 ), will use the experience and lessons it learned to strengthen our laws and enforcement.
Mr. Wong, who is also the finance minister, said in his first comment on the situation since it closed that he had been able to “take swift and strong enforcement actions against criminals who attempt to use Singapore to dirty their unlawful funds.”
He was speaking at the opening of the Financial Action Task Force ( FATF ) Plenary Meeting, held at the Marina Bay Sands Expo &, Convention Centre.
The 40-member world watchdog for money laundering and terrorism financing is now led by Singapore. Its two-year word comes to an end this month, and after that, it will transfer to Mexico.
Money laundering has been thrust into the spotlight in Singapore after the S$ 3 billion ( US$ 2.21 billion ) case, which involved 10 foreigners and assets such as hard cash, luxury properties, branded goods, cryptocurrency and alcohol.
We as a global financial and business gateway are aware of the increased risks of wealth trafficking and terrorism financing. However, Mr. Wong told delegates that we are determined to take the necessary steps to mitigate these risks and prevent our reputation as a reliable financial hub.
He claimed that the operation by law enforcement in August of last year, which involved parallel raids on various locations in Singapore, including Good School Bungalows and condos, was “one of the largest anti-money laundering operations in the world.”
He noted that the government conducted thorough investigations and seized the property after discovering signs of illegal activity.
Ten defendants have since been found guilty within a month of their arrest. More than 90 % of what we seized from them has been forfeited to the State, which accounts for about S$ 94 million of their property. The 17 different offenders who are already abroad are still being investigated, according to Mr. Wong.
SINGAPORE FULLY COMMITTED
Mr Wong reiterated Singapore’s total commitment to tackling the scourge of wealth fraud.
Singapore “takes a strong stand against economic crime. But zero compassion does not mean zero event. He claimed that determined criminals who will continue to look for gaps to exploit even the most demanding anti-money laundering regimes may be able to circumvent them.
” It’s also crucial that our policies are n’t overly zealous and unnecessarily stifle legitimate activities and investments.”
In response, Singapore adopts a risk-based strategy, focusing on identifying the most recent economic trends and developments that criminals can exploit, and creating tools and legal frameworks to identify cautious individuals and activities, according to Mr. Wong.
Last year, Singapore released its regional risk analysis on money laundering, 10 years after the previous one.
On Wednesday, the National Asset Recovery Strategy was published.
The file” will outline how we will deprive criminals of their illegal funds and assets, eliminate the economic incentives for criminals to dirty their unlawful proceeds in Singapore, and transfer these assets to victims,” according to Mr. Wong.
He noted that the FATF has encouraged international cooperation in the area under the leadership of Singapore, such as by requiring part nations to acknowledge and carry out each other’s judge orders relating to asset sequestration.
It has also made lawful institutions that could possibly be used to cover legal activity, more clear. According to Mr. Wong, the work force now demands the release of more data to enable law enforcement to discover the true owners of such entities.
He continued, adding that the FATF has encouraged the exchange of information between personal financial institutions and law enforcement.
” This effort to improve global commodity treatment is still in its early stages. According to Mr. Wong, the recovery rate from unlawful money has increased from less than 1 % a decade ago to about 3 percent in 2024 according to the most recent Police numbers.
” 3 per share is also low. We need to accomplish much. But at least we are moving in the right direction, which will allow us to anticipate also higher treatment rates in the future.
Healing Resources
” We have made property recovery a concern in our nationwide anti- cash fraud regime”, Mr Wong told delegates.
Singapore’s approach to recovering assets is multi- faceted, the Ministry of Home Affairs, Ministry of Finance and Monetary Authority of Singapore ( MAS ) said in a joint press release on Wednesday.
It focuses on identifying suspicious and criminal activity, deterring the use of Singapore to conceal or move illegal assets, and deprived criminals of their proceeds through quick arrest, providing the greatest reparation to victims, they said.
” We have strengthened partnerships with our international rivals, and group and private sector stakeholders, in property healing and loss prevention work”, said the authorities.
Mr. Wong praised efforts made by the Singapore Police Force to establish an anti-scam center where law enforcement representatives from major banks, online e-commerce platforms, and law enforcement agencies collaborated and collaborated in real-time to track suspicious fund flows and freeze illicit funds.
Over 16, 700 SMS alerts were sent to bank customers between March and April this year, according to the organizations, warning over 12, 500 people who were being defrauded.
This disrupted more than 3, 000 scams and averted losses of over S$ 100 million, they said.
According to Mr. Wong, MAS also launched a platform for private financial institutions to securely share information on customers who display red flags earlier this year, allowing them to better identify criminal networks and activities.