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$6,000 fine for laundering $3 million?
January 6th, 2011 | Author: Contributions
http://www.temasekreview.net/2011/01/06/6000-fine-for-laundering-3-million/
The recent case involving a Chinese Singaporean and the son of former Bangladeshi Prime Minister to launder $3million is indeed a fresh blow to the image that Singaporean authorities have been trying to defend as a financial hub that does not tolerate money laundering. For years US authorities and other governments have been accusing Singapore of being a global hub for money laundering. The recent case only adds to those claims which Singapore authorities have been refuting all this while.
What is alarming is that a trivial $6,000 fine has been imposed for laundering $3 million. In fact it is well below the maximum fine of $10,000. For criminals and crooks who want to launder money, that kind of fines is unlikely to deter them.
The former Bangladeshi Prime Minister and her son have courted controvery for a long time and have been constantly accused of corruption. What is puzzling is why Singapore authorities did not extradite the son of the former Bangladeshi Prime Minister as he is equally responsible for the laundering of $3million.
If Singapore is serious about stemming out money laundering in its territory it will need to do more than taking sissy and cosmetic preventive actions. Firstly it needs to set up a formal department to look into money laundering. This department should not be part of MAS nor Police but a seperate entity. Secondly it needs to set up proper and strong laws. These laws need to reduce burden of evidence. As long as individuals are unable to prove origin and destination of the money they are carrying across borders, that money should be withheld till they show further evidence. Thirdly proper monitoring system need to be put in place. Each time transactions are made at the bank, remittance agents or money changers when suspicious transactions are made, the individuals need to be contacted immediately to show proof of where they obtained such money.
If Singapore still refuse to take strong action against money laundering then it will only prove the claims of its critics who accuse Singapore of benignly allowing money laundering to support its banking and finance industry.
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January 6th, 2011 | Author: Contributions
http://www.temasekreview.net/2011/01/06/6000-fine-for-laundering-3-million/
The recent case involving a Chinese Singaporean and the son of former Bangladeshi Prime Minister to launder $3million is indeed a fresh blow to the image that Singaporean authorities have been trying to defend as a financial hub that does not tolerate money laundering. For years US authorities and other governments have been accusing Singapore of being a global hub for money laundering. The recent case only adds to those claims which Singapore authorities have been refuting all this while.
What is alarming is that a trivial $6,000 fine has been imposed for laundering $3 million. In fact it is well below the maximum fine of $10,000. For criminals and crooks who want to launder money, that kind of fines is unlikely to deter them.
The former Bangladeshi Prime Minister and her son have courted controvery for a long time and have been constantly accused of corruption. What is puzzling is why Singapore authorities did not extradite the son of the former Bangladeshi Prime Minister as he is equally responsible for the laundering of $3million.
If Singapore is serious about stemming out money laundering in its territory it will need to do more than taking sissy and cosmetic preventive actions. Firstly it needs to set up a formal department to look into money laundering. This department should not be part of MAS nor Police but a seperate entity. Secondly it needs to set up proper and strong laws. These laws need to reduce burden of evidence. As long as individuals are unable to prove origin and destination of the money they are carrying across borders, that money should be withheld till they show further evidence. Thirdly proper monitoring system need to be put in place. Each time transactions are made at the bank, remittance agents or money changers when suspicious transactions are made, the individuals need to be contacted immediately to show proof of where they obtained such money.
If Singapore still refuse to take strong action against money laundering then it will only prove the claims of its critics who accuse Singapore of benignly allowing money laundering to support its banking and finance industry.
.
