SG is money-laundering hub

[LITTLEREDDOT]

13 arrested for alleged involvement in rental scams that cost victims more than $1.3m​

Cash seized from an islandwide operation which saw 13 people nabbed for their suspected involvement in 480 rental scams. PHOTO: SINGAPORE POLICE FORCE

Chin Hui Shan

MAR 14, 2023


SINGAPORE - The police have arrested 13 people for their suspected involvement in 480 rental scams that resulted in victims losing more than $1.3 million.
In an islandwide operation between March 9 and March 13, the police nabbed nine men and four women aged between 18 and 56.
The scammers would impersonate property agents and ask victims for payment to secure the rental of a unit before viewing it.
Another three women, aged between 21 and 27, are also assisting in investigations, the police added.
Preliminary investigations show these 16 suspects allegedly allowed their bank accounts to be used to receive the illicit proceeds from the scams before withdrawing the money and handing it to others in the syndicate.
Police investigations are ongoing.
“To avoid becoming involved in money laundering activities, members of the public should always reject requests to allow their bank accounts to be used to receive and transfer money for others,” the police said.

 

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Jail for man who let his bank account be used to receive money stolen from retiree in $1m scam​

Shaffiq Alkhatib
Court Correspondent

MAR 16, 2023

SINGAPORE – In exchange for cash, a man agreed to let others use his bank account, which later received part of a retiree’s $1 million life savings after she was duped in a scam.
Between January and February 2022, at least 75 unauthorised transactions involving nearly $500,000 were performed via 24-year-old Lin Chien Wei’s bank account.
Of this amount, nearly $250,000 was traceable to the 75-year-old victim’s bank account. Most of the money in Lin’s bank account had since been transferred out, leaving a balance of only $504.11.
Lin was sentenced to four months and two weeks’ jail on Wednesday after he pleaded guilty to an offence under the Computer Misuse Act. He has made no restitution.
His accomplice, Dickson Jong Chee Siang, 29, was sentenced to nine months’ jail in January.
Court documents did not state if the two Malaysians were part of the group that scammed the retiree.
The prosecution said that on Dec 9, 2021, the victim received phone calls from several people claiming to be from the “Chinese Judicial Investigation Department”.


Deputy Public Prosecutor Stephanie Koh said: “These persons claimed that the victim’s identity had been misused in China, and she was required to assist in investigations.
“These persons instructed the victim to report to them by sending them messages every morning, afternoon and evening to ensure that she remained contactable.”
They also told the victim to provide her personal details such as her identity card number and home address. She complied with their instructions.

In mid-December 2021, she received letters bearing the letterheads of the Singapore Police Force, the Attorney-General’s Chambers, the Monetary Authority of Singapore and the State Courts.
Left outside her door, the letters stated that she was suspected of illegally opening a Chinese bank account.
The victim was told to cooperate with the so-called Chinese Judicial Investigation Department and received a package containing a mobile phone in January 2022.
The DPP said: “She was then contacted by someone who directed her to use a ‘Team Link’ video-conferencing application which was pre-installed in the mobile phone.
“She engaged in multiple video calls with various persons on the... application, during which she was instructed to position the phone camera towards her personal mobile phone.”

During these phone calls, her personal mobile phone received several one-time-passwords (OTPs) sent to her by Singpass and UOB.
Without her knowledge, the victim’s life savings totalling $1 million were transferred from her Central Provident Fund account to her UOB bank account on Jan 18, 2022.
After that, the money was transferred to other bank accounts between Jan 28 and Feb 3, 2022.
The victim lodged a police report on Feb 4, 2022, and Lin was then traced as the holder of one of the bank accounts that received part of her money.
DPP Koh said that Lin and Jong were acquaintances. In early January 2022, Lin found out that Jong was offering cash payments for the use of bank accounts – purportedly for cryptocurrency trading.
The prosecutor added: “The accused approached Dickson because he wanted to earn extra cash and agreed to loan Dickson his personal OCBC account... in exchange for payment of $500 a month.
“The accused met up with Dickson and gave him his OCBC iBanking details, ATM card and PIN (personal identification number).”
On Jong’s instructions, Lin also changed the contact number attached to his OCBC Bank account to another provided by Jong.
This was done so that the OTPs for online transactions would be sent to that number instead.
Lin committed the offence despite knowing that his OCBC account was only for his personal use and that he was not supposed to allow anyone else to use it.

 

[blackmondy]

Without all these dirty money, you think this cuntry can tahan the costs of our expensive and useless gahmen?

 

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Tycoon jailed in Angola fails in bid to have money released from $749m kept in S’pore account​

Selina Lum
Senior Law Correspondent

May 17, 2023

SINGAPORE - An Angolan tycoon, who has been sentenced to nine years’ jail in the southern African nation for embezzlement, money laundering and tax fraud, on Wednesday failed in his bid for $2.6 million to be released from his Singapore bank account.
Carlos Manuel De Sao Vicente had a Bank of Singapore (BOS) account containing more than US$558 million (S$749 million) that was seized by the Commercial Affairs Department (CAD) on Feb 19, 2021.
The white-collar crime unit also seized two other accounts with the same bank – one belonging to De Sao Vicente’s wife Irene, which contained more than US$5 million, and the other belonging to his son Ivo, which contained US$10.5 million.
On Sept 28, 2022, De Sao Vicente, who is represented by local law firm TSMP Law Corporation, applied to the Singapore High Court for the release of US$4.9 million from his frozen account. He later revised the amount to $2.6 million.
He contended that he has no other source of funds and needed the money to pay for his legal expenses in Singapore, Switzerland and Angola, and for legal representations to various international organisations.
On Wednesday, the court dismissed his application.
In his written judgment, Justice Vincent Hoong said it was difficult to survey the true extent of De Sao Vincente’s wealth, given the numerous cross-jurisdictional transfers of large sums between his bank accounts and the international nature of his assets.

For instance, De Sao Vincente, who is the son-in-law of Angola’s first president Agostinho Neto, had more than €18 million (S$26 million) in a personal bank account in the United Kingdom, which was not disclosed or explained.
“In the circumstances, I am unable to find as a fact that the applicant is unable to access funds which represent less than a fraction of a percentage of his wealth solely based on his bare assertions,” said Justice Hoong.
The judge added there was sufficient evidence that De Sao Vincente’s family members have access to funds which would be more than sufficient to cover his legal expenses.

He said: “It would not be unreasonable to expect the applicant to explore the possibility of seeking funds from his family. They have access to sufficient assets to pay his legal fees without undue hardship to themselves.
“These assets were gifted by the applicant himself. There is good reason for them to be inclined to extend funding to him.”
At the peak of his wealth, De Sao Vincente had a fortune of more than US$1 billion.
He was the majority shareholder of the leading co-insurance firm in the oil industry of Angola, which is the second-largest oil producer in Africa.
De Sao Vincente, a Portuguese-Angolan citizen, owned and controlled multiple companies in Angola, the UK, Bermuda and Portugal, and has bank accounts across the globe, including in Singapore and Switzerland.

On Sept 22, 2020, Angolan prosecutors held De Sao Vincente in custody and charged him with money laundering and tax fraud.
He was convicted on all the charges on March 24, 2022, and sentenced to nine years’ jail and a fine. He was also ordered to pay relevant judicial fees and US$4.5 billion in compensation for damages to the Angolan state.
The Angolan courts found that he had embezzled more than US$1.2 billion from the country and had accumulated unexplained wealth estimated at US$3.6 billion belonging to him, his family and his companies.
His assets and those of his family in Angola were confiscated by the state.
De Sao Vincente failed in his appeal, and a further appeal to the country’s Supreme Court is pending.
He claims that his family is being targeted because of his wife’s outspoken criticism of alleged corruption.
The current application before the Singapore court relates to funds that flowed to his BOS account.
In September 2018, De São Vincente ordered US$400 million to be transferred from the accounts of one of his companies to his personal account with Banque Syz in Switzerland.
In December that year, prosecutors in Geneva froze his account over suspicions of money laundering.
In April 2019, he was allowed to transfer US$219 million and €18 million to his BOS account.
CAD investigators also found 18 separate transfers of funds from the account of another company into his BOS account between November 2018 and September 2019. These totalled €12.5 million and US$103 million.
No reasonable explanation has been given to CAD or the court for these transfers.
Before the BOS accounts were frozen, De Sao Vincente transferred more than €6 million to the Portugese bank accounts of his wife, two sons and daughter between November 2018 and August 2020.

 

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Bank of Singapore happily accepts US$558 million. No questions asked.

Financial institutions required to combat higher money laundering risks from wealthy clients: MAS​

MAS said it requires financial institutions to have strict anti-money laundering controls in place. ST PHOTO: JASON QUAH

Prisca Ang

May 24, 2023

SINGAPORE – Financial institutions are required to alert the police and the financial regulator if they suspect that a transaction could be related to a crime, although there is no threshold set for when they must flag these activities.
They are also required to step up their measures to manage the higher risks of money laundering and terrorism financing posed by customers such as wealthy individuals, said a Monetary Authority of Singapore (MAS) spokesman on Tuesday.
MAS said financial institutions must file Suspicious Transaction Reports with the police, and extend a copy to the regulator, if they have any reason to suspect that a financial transaction could be linked to a crime.
It was responding to queries from The Straits Times about anti-money laundering measures in the financial industry following an Angolan tycoon’s recent failed bid for $2.6 million to be released from his Singapore bank account. He was sentenced in March 2022 to nine years’ jail in the southern African nation for embezzlement, money laundering and tax fraud.
Carlos Manuel De Sao Vicente had a Bank of Singapore (BOS) account containing more than US$558 million (S$753 million) that was seized by the Commercial Affairs Department on Feb 19, 2021.
The white-collar crime unit also seized two other accounts with the same bank – one belonging to De Sao Vicente’s wife, Irene, which contained more than US$5 million, and the other belonging to his son Ivo, which contained US$10.5 million.
On Sept 28, 2022, De Sao Vicente applied to the Singapore High Court for the release of US$4.9 million from his frozen account, later revising the amount to $2.6 million. He contended that he had no other source of funds and needed the money to pay his legal expenses in Singapore, Switzerland and Angola, and for legal representations to various international organisations.

The court dismissed his application on May 17. In his written judgment, Justice Vincent Hoong said it was difficult to survey the true extent of De Sao Vincente’s wealth, given the numerous cross-jurisdictional transfers of large sums between his bank accounts and the international nature of his assets.
Mr Chew Qi, BOS’ global head of financial crime compliance, said the bank acted promptly when news of measures taken by Swiss regulators were made public in 2020.
Swiss financial regulator Finma reprimanded Swiss bank Banque Syz in September 2020 for allowing an Angolan client to transfer millions in and out of his account with the bank without investigating the possible reasons for the substantial growth in his wealth.


Mr Chew said BOS has robust anti-money laundering and client due diligence controls in place, starting when a customer begins their relationship with the bank.
“Ongoing monitoring is conducted, including regular screening for adverse news, monitoring of transactions to ensure that they are consistent with the client’s profile and sources of wealth, and stepping up surveillance for higher risk situations.
“Where the bank becomes aware of adverse news on our clients, we have protocols to respond swiftly to restrict account activity and to exit the relationship. These stringent measures were applied in the case of (De Sao Vicente),” he told ST on Tuesday.

MAS said it requires financial institutions (FIs) to have strict anti-money laundering controls in place. This includes carrying out due diligence on their customers to understand their background and purpose of opening an account.
“FIs also monitor customer transactions on an ongoing basis, to ensure that transactions are consistent with the purpose of the account and not unusual,” it said, adding that FIs are required to apply enhanced measures for customers who present higher money laundering and terrorism financing risks.
These measures include establishing customers’ source of wealth and funds, and more closely monitoring their accounts for anomalous transaction spikes and unexpected fund flows, especially to or from higher risk jurisdictions.
MAS said: “There is no prescribed definition of a higher risk customer; various factors have to be taken into account to determine if a customer presents a higher money laundering or terrorism financing risk.
“Given their attributes and size of transactions, high net worth individuals are often assessed as presenting higher money laundering and terrorism financing risks.”
MAS added that Suspicious Transaction Reports support its broader supervisory and surveillance role to ensure that FIs have robust defences against financial crime.

 

[k1976]

Financial institutions required to combat higher money laundering risks from wealthy clients: MAS​

MAS said it requires financial institutions to have strict anti-money laundering controls in place. ST PHOTO: JASON QUAH

Prisca Ang

May 24, 2023

SINGAPORE – Financial institutions are required to alert the police and the financial regulator if they suspect that a transaction could be related to a crime, although there is no threshold set for when they must flag these activities.
They are also required to step up their measures to manage the higher risks of money laundering and terrorism financing posed by customers such as wealthy individuals, said a Monetary Authority of Singapore (MAS) spokesman on Tuesday.
MAS said financial institutions must file Suspicious Transaction Reports with the police, and extend a copy to the regulator, if they have any reason to suspect that a financial transaction could be linked to a crime.
It was responding to queries from The Straits Times about anti-money laundering measures in the financial industry following an Angolan tycoon’s recent failed bid for $2.6 million to be released from his Singapore bank account. He was sentenced in March 2022 to nine years’ jail in the southern African nation for embezzlement, money laundering and tax fraud.
Carlos Manuel De Sao Vicente had a Bank of Singapore (BOS) account containing more than US$558 million (S$753 million) that was seized by the Commercial Affairs Department on Feb 19, 2021.
The white-collar crime unit also seized two other accounts with the same bank – one belonging to De Sao Vicente’s wife, Irene, which contained more than US$5 million, and the other belonging to his son Ivo, which contained US$10.5 million.
On Sept 28, 2022, De Sao Vicente applied to the Singapore High Court for the release of US$4.9 million from his frozen account, later revising the amount to $2.6 million. He contended that he had no other source of funds and needed the money to pay his legal expenses in Singapore, Switzerland and Angola, and for legal representations to various international organisations.

The court dismissed his application on May 17. In his written judgment, Justice Vincent Hoong said it was difficult to survey the true extent of De Sao Vincente’s wealth, given the numerous cross-jurisdictional transfers of large sums between his bank accounts and the international nature of his assets.
Mr Chew Qi, BOS’ global head of financial crime compliance, said the bank acted promptly when news of measures taken by Swiss regulators were made public in 2020.
Swiss financial regulator Finma reprimanded Swiss bank Banque Syz in September 2020 for allowing an Angolan client to transfer millions in and out of his account with the bank without investigating the possible reasons for the substantial growth in his wealth.


Mr Chew said BOS has robust anti-money laundering and client due diligence controls in place, starting when a customer begins their relationship with the bank.
“Ongoing monitoring is conducted, including regular screening for adverse news, monitoring of transactions to ensure that they are consistent with the client’s profile and sources of wealth, and stepping up surveillance for higher risk situations.
“Where the bank becomes aware of adverse news on our clients, we have protocols to respond swiftly to restrict account activity and to exit the relationship. These stringent measures were applied in the case of (De Sao Vicente),” he told ST on Tuesday.

MAS said it requires financial institutions (FIs) to have strict anti-money laundering controls in place. This includes carrying out due diligence on their customers to understand their background and purpose of opening an account.
“FIs also monitor customer transactions on an ongoing basis, to ensure that transactions are consistent with the purpose of the account and not unusual,” it said, adding that FIs are required to apply enhanced measures for customers who present higher money laundering and terrorism financing risks.
These measures include establishing customers’ source of wealth and funds, and more closely monitoring their accounts for anomalous transaction spikes and unexpected fund flows, especially to or from higher risk jurisdictions.
MAS said: “There is no prescribed definition of a higher risk customer; various factors have to be taken into account to determine if a customer presents a higher money laundering or terrorism financing risk.
“Given their attributes and size of transactions, high net worth individuals are often assessed as presenting higher money laundering and terrorism financing risks.”
MAS added that Suspicious Transaction Reports support its broader supervisory and surveillance role to ensure that FIs have robust defences against financial crime.

Those Uber rich South Asian and North Asian big shot sirs?

 

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Credit Suisse loses Singapore court case with former Georgia prime minister​

A Credit Suisse unit has been ordered by a Singapore court to compensate Mr Bidzina Ivanishvili, who was once Georgia’s prime minister, for his losses. PHOTO: REUTERS

May 26, 2023

ZURICH – A Credit Suisse Group unit has been ordered by a Singapore court to compensate billionaire Bidzina Ivanishvili what may well be hundreds of millions of dollars, in yet another blow for the bank in its legal battle with the former prime minister of Georgia.
Singapore-based Credit Suisse Trust breached its duty to the plaintiffs in failing to safeguard the trust assets, according to a judgment posted on Friday.
The court assessed his damages at US$926 million (S$1.25 billion), minus deductions for an earlier US$79.4 million settlement. The amount could be further subject to change “to ensure there is no double recovery”, given that a Bermuda court last year awarded Mr Ivanishvili more than US$600 million in damages in the case.
“The loss suffered by the plaintiffs is the difference between what would have been achieved if the whole portfolio had been removed and managed by a competent, professional trustee and the trust assets were not affected by fraud, and what was actually achieved,” Judge Patricia Bergin wrote in her 248-page verdict.
A spokesman for Credit Suisse said in an e-mailed statement that “the judgment published today is wrong and poses very significant legal issues”, adding that the trust intends to “vigorously pursue an appeal”.
A spokesman for Mr Ivanishvili was not immediately available to comment.
The ruling marks another major setback for Credit Suisse after the loss to Mr Ivanishvili in a Bermuda court, a conviction for money laundering in Switzerland and a raft of other scandals that undermined investor confidence in the bank. It had to accept a government-brokered takeover, which is expected to close soon, by larger rival UBS.


The judgment highlighted the bank trust’s failure to prevent private banker Patrice Lescaudron from having any further access to the trust assets. Lescaudron was convicted in 2018 for fraud over a scheme he ran to take money from Mr Ivanishvili’s accounts to cover growing losses among other clients’ portfolios.
If the parties are unable to reach agreement on costs and/or interest, they should file an agreed timeline for submissions on this matter by no later than June 30, according to the judgment.
Senior Counsel Cavinder Bull from Drew & Napier was lead counsel for Mr Ivanishvili. Senior Counsel Lee Eng Beng from Rajah & Tann and a team from Allen & Gledhill represented the trust. BLOOMBERG

 

[Karmile005]

 

[Pinkieslut]

Nothing wrong Singapore is bestest

 

[tanwahtiu]

FinCEN leaks: DBS, CIMB and Deutsche among banks in S'pore that handled about $6 billion in suspicious transactions​

Singapore received about US$3 billion and sent US$1.5 billion in 1,781 suspicious transactions, within 20 years. PHOTO: ST FILE

Aw Cheng Wei
China Correspondent


SEP 21, 2020

SINGAPORE - A number of banks in Singapore handled about US$4.5 billion (S$6.13 billion) in suspicious transactions between 2000 and 2017, with DBS Bank, CIMB Bank and Deutsche Bank among those that processed the largest sums of such funds here.
This is according to the findings of the International Consortium of Investigative Journalists (ICIJ) on leaked files, comprising so-called suspicious activity reports, from the Financial Crimes Enforcement Network (FinCEN) in the United States.
The consortium noted that, within almost 20 years, Singapore received about US$3 billion and sent US$1.5 billion in 1,781 suspicious transactions.
The Monetary Authority of Singapore (MAS) told The Straits Times on Monday that it is aware that Singapore banks were mentioned in media reports on suspicious transaction reports filed with FinCEN.
Although such suspicious transaction reports do not imply that the transactions are illicit, the authority takes such reports very seriously, said a spokesman, adding that Singapore's regulatory framework to combat money laundering meets international standards set by the Financial Action Task Force.
"MAS is closely studying the information in these media reports, and will take appropriate action based on the outcome of our review," she added.
In all, the ICIJ reported on Sunday (Sept 20) that the files contained information about more than US$2 trillion worth of transactions between 1999 and 2017, which were flagged by internal compliance departments of financial institutions as suspicious.

Experts told The Straits Times that filing suspicious activity reports do not translate to wrongdoing. Furthermore, banks and financial institutions are obliged to flag unusual transactions so that regulators can follow up on them, they added.
For example, an account which typically sees small transactions getting an unusually large deposit of money might pop up on banks' radars, the noted.
Alternatively, if bank customer who has $1 million in his account decides to transfer all his money to another bank - such a transaction might also show up as "suspicious".

Associate Professor Lawrence Loh at National University of Singapore Business School said: "The revelation so far has been more focused on the movements rather than the applications of the funds.
"In fact, there may be a wide spectrum of possibilities for the applications, including those relating to corruption or even as drastic as criminal support," he added.
In Singapore, the Commercial Affairs Department (CAD) publishes the number of suspicious transaction reports it received in its annual report. The CAD is the police unit that deals with white-collar crime.

The CAD's Suspicious Transaction Reporting Office received 32,660 reports in 2018, down 8 per cent from 35,471 reports in 2017, according to CAD's 2018 annual report.
CAD noted that banks filed the most number of suspicious transaction reports - 16,314 - in 2018, followed by the 6,510 reports filed by casinos and 4,823 reports filed by moneychangers and remittance agents.
The consortium on Sunday released a list of banks in Singapore involved in the allegedly illicit transfers, based on more than 2,100 reports amounting to some $35 billion, that were filed by about 90 financial institutions. A report may contain multiple transactions.
The list "displays cases where sufficient details about both the originator and beneficiary banks were available, and is designed to illustrate how potentially dirty money flows from country to country around the world, via US-based banks", said the ICIJ.
The consortium reported that five global banks appeared most often in the leaked documents - HSBC Bank, JPMorgan, Deutsche Bank, Standard Chartered and Bank of New York Mellon.
In Singapore, DBS Bank was listed as having sent US$596.8 million and received US$228.3 million in 461 suspicious transactions between 2000 and 2017.
CIMB Bank was noted to have sent US$250.4 million and received US$34.3 million in 294 suspicious transactions, while Deutsche Bank sent US$224.3 million and received US$62 million in 19 suspicious transactions within the same period.
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A DBS spokesman told ST that the bank has "zero tolerance for bad actors abusing the financial system" and is firm on collaborating with the authorities in the seizure of funds and disruption of criminal networks.
"Outside of sanctions on names or specific account freezes, it is generally very difficult to delay or intercept money in transit given the impact on legitimate business, so the normal process - which happens behind the scenes - involves subsequent investigations to establish suspicion, based on which the necessary action is taken," he added.
CIMB Singapore "operates in compliance with the anti-money laundering laws, regulations and guidelines issued by the Monetary Authority of Singapore", a bank spokesman said in response to queries. He added that the bank is investigating the matter.
Deutsche Bank noted that it has invested billions of dollars to more support the authorities in this effort. "Naturally, this leads to increased detection levels," it said in a statement.
The German bank has "devoted significant resources to strengthening our controls and we are very focused on meeting our responsibilities and obligations", it added.

Why Trump choose to meet NK in Singapore....

 

[LITTLEREDDOT]

DBS, OCBC, Citibank and Swiss Life fined a total of $3.8m for breaches linked to Wirecard saga: MAS​

The four financial institutions were found to have inadequate controls in place. PHOTOS: ST FILE, ST KUA CHEE SIONG, @SWISSLIFE_GROUP/TWITTER

Claire Huang
Business Correspondent

June 21, 2023

SINGAPORE – Three lenders – DBS, OCBC and Citibank Singapore – and insurer Swiss Life Singapore have been fined $3.8 million for breaching anti-money laundering and anti-terrorism financing rules, in a matter related to the Wirecard scandal.
The Monetary Authority of Singapore (MAS) on Wednesday said the breaches were identified when it examined the four entities following news of irregularities in Wirecard’s financial statements, as well as the alleged involvement of Singapore-based individuals and entities in the matter.
The four financial institutions were found to have inadequate controls in place.
Breaches include failure to inquire into the background and purpose of transactions, failure to maintain relevant and up-to-date customer due diligence information relating to customers’ beneficial ownership, as well as failure to adequately establish the source of wealth of higher-risk customers and their beneficial owners.
“Although the breaches were serious, MAS did not find wilful misconduct by any staff of these financial institutions,” the regulator said.
MAS said its checks were focused on assessing the adequacy of the financial institutions’ anti-money laundering and anti-terrorism financing policies and controls.
It added that the police’s Commercial Affairs Department is in charge of investigations into whether the funds that flowed into or through the financial institutions were illicit monies.

Of the four entities, DBS was fined $2.6 million for breaches between July 2015 and February 2020 relating to accounts maintained by 11 corporate customers.
OCBC was fined $600,000 for breaches between June 2015 and January 2016 relating to accounts maintained by one corporate customer.
Citibank was fined $400,000 for breaches between September 2019 and June 2020 relating to accounts maintained by two corporate customers, while Swiss Life was fined $200,000 for breaches in May 2017 relating to an investment-linked life insurance policy it had underwritten.

MAS said that the financial institutions have taken “prompt remedial actions” to address the deficiencies that were identified.
These include enhancements to their procedures and processes, and training to improve staff’s vigilance in detecting and escalating risk concerns.
MAS also said it has completed its investigation into business administration firm Citadelle for suspected contravention of the Trust Companies Act (TCA) by carrying on a trust business without a licence.
The investigation did not reveal any breaches of the TCA by Citadelle and no further action against the firm will be taken, MAS added.
In response to media queries, DBS and OCBC noted that the Wirecard case involved an intricate web of entities and the transactions were part of an elaborately orchestrated scheme that involved a network of complex corporate structures and arrangements to conceal the actual control and the beneficial ownership.
DBS said that it “could have done better”, adding: “While we detected and acted upon some of these activities through transaction monitoring and customer due diligence – and ultimately exited all relevant entities – we were unable to unravel the scheme in its entirety.”
DBS said that it is now in a materially better position to respond faster and more robustly if faced with similar circumstances.
OCBC said it takes such matters seriously, adding that over the past few years it has devoted significant resources to uplift such standards and capabilities.
“Our transaction monitoring, due diligence and know-your-customer processes have been further enhanced. We have also deployed data analytics, which has yielded positive outcomes in money laundering and financing terrorism risk detection and mitigation,” OCBC said.
When asked, Citibank Singapore said this is the first time it is fined for such breaches.
“The case dates back to before June 2020 and since then we have taken steps to strengthen our know-your-customer process.”
Swiss Life Singapore said it cooperated closely with the authorities and additional measures have been implemented to detect client misconduct more effectively.
The highest penalty meted out for such breaches was to BSI Bank in May 2016.
MAS had ordered it to shut down and imposed a fine of $13.3 million for 41 counts of anti-money laundering breaches relating to the 1Malaysia Development Berhad (1MDB) scandal.
In Dec 2016, Standard Chartered Singapore was fined $5.2 million for breaching anti-money laundering rules in relation to the 1MDB scandal.
The penalty comes a day after two former employees of Wirecard Asia were jailed on Tuesday for helping their superior embezzle funds from the subsidiary of the German-registered international payment services company.
This makes it the first Wirecard-related conviction in the world.
The alleged mastermind, Wirecard Asia vice-president of controlling and international finance Edo Kurniawan, escaped Singapore before he could be nabbed. There is an Interpol red notice issued against him.
The payments firm was a darling of Germany’s tech industry until it collapsed spectacularly in 2020 after acknowledging that billions of assets it listed on its books did not exist.
The accounting scandal shocked the world and prosecutors are still pursuing those involved in the fraud scheme.

 

[LITTLEREDDOT]

S’pore does not ban trade with Myanmar, but prevents sale of items that can hurt civilians: Vivian​

Singapore has not conducted any military sales to Myanmar in recent years, including during the period covered in the report. PHOTO: AFP
Hariz Baharudin

July 3, 2023

Singapore has not imposed a general trade ban on Myanmar as it does not want to worsen the suffering of people in the country, said Foreign Minister Vivian Balakrishnan on Monday.
But at the same time, the Republic remains committed to implementing its policy to prevent the sale of items which have potential military application to Myanmar and can be used to hurt unarmed civilians.
Dr Balakrishnan was responding in a written reply to Mr Vikram Nair (Sembawang GRC) and Workers’ Party MP Dennis Tan (Hougang) who had asked about a report published on May 17 by United Nations Special Rapporteur in Myanmar Tom Andrews.
The report had flagged how Singapore-based entities were involved in the flow of supplies to Myanmar’s military, among other things. It had supposedly found that US$254 million (S$343 million) worth of “arms and related goods” were shipped to the military through the Singapore-based entities.
Dr Balakrishnan noted that an initial list of 47 entities were identified, and more recently, another 91 entities were flagged as well.
“We take Mr Andrews’ report very seriously, and have requested him to provide specific and verifiable evidence to aid our efforts,” he said, adding that this was an interim update and that investigations are ongoing.
The aim, however, is not to bar trade with Myanmar, said the minister. He shared that in 2022, Singapore’s total bilateral trade with the country was $5.8 billion.


“Let me make clear that it is not the Singapore Government’s policy intention to block legitimate trade with Myanmar. Doing so would further set back the country’s development and exacerbate the suffering of the civilian population of Myanmar,” he said.
The allegations in the report refer to how goods with potential military application had been shipped from Singapore-based entities over a two-year period to Myanmar, where thousands have been killed after its military overthrew the democratically elected government in a coup in February 2021.
The report also said that Singaporean banks have been “used extensively by arms dealers”, and that “substantial reserves” of Myanmar are suspected to be held in DBS Bank, UOB and OCBC Bank.


In his reply on Monday, Dr Balakrishnan said that nine of the entities that were flagged are no longer registered with the Accounting and Corporate Regulatory Authority, which means that they can no longer carry on business or operate as legal entities in Singapore.
“This includes entities that were allegedly involved in the transfer of components and spare parts for fighter aircraft, equipment for the Myanmar Navy, as well as radios, research and equipment for electronic warfare,” he said.
Most of the 47 entities initially flagged no longer have business facilities with Singapore banks. The banks will review the remaining accounts and take appropriate measures, including enhanced scrutiny, to ensure that the transactions processed by these entities are not suspicious.
“Such measures would curtail their ability to continue with any undesirable business,” said Dr Balakrishnan.
He added that as Myanmar is on the money-laundering blacklist of the Financial Action Task Force, financial institutions in Singapore have also been applying enhanced due diligence for Myanmar-linked customers and transactions that present higher risks.


In May, Singapore’s Ministry of Foreign Affairs responded to the allegations in the report, saying that the Republic has worked to prevent the flow of arms into Myanmar while remaining committed to providing humanitarian assistance to its Asean neighbour.
A Monetary Authority of Singapore spokesman also said in the same month that it had alerted banks here based on the information provided in the UN report, and that several of the entities mentioned no longer have business relationships with the banks.

Arms and related goods​

The Government is looking into specific details of the “arms and related goods” that were shipped through Singapore-based entities to the Myanmar military, said Dr Balakrisrhnan.
He noted that in Mr Andrews’ report, there were no indications that specific armaments were being transferred to the military. Instead, only spare parts and equipment were cited under the category of “arms”, without details of what they were.
The report also contained the major category of “dual use supplies”, which included items such as computers, electrical components and medical equipment, as well as “manufacturing equipment” like welding machines and overhead cranes. There was also a category called “raw materials” which covered items such as steel beams, aluminium ingots, pipes, valves and fabric.
Based on these descriptions, it can be seen that they do not necessarily constitute weaponry, noted Dr Balakrishnan.
He said: “Many of them such as computers and medical equipment are also non-controlled items. It is difficult to isolate specific suspicious transactions from such broad categories.
“We are therefore seeking more details such as export transaction documents to ascertain how these transactions are connected to the manufacture of weapons in Myanmar, so that our checks and investigations can be more thorough, and effective based on objective evidence.”
Singapore has not conducted any military sales to Myanmar in recent years, including during the period covered in the report – between February 2021 and December 2022, stressed Dr Balakrishnan.
He noted how Mr Andrews had reaffirmed in his report that “there are no indications the Government of Singapore has approved, or is involved in, the shipment of arms and associated materials to the Myanmar military”.
“We will continue to work closely and constructively with Mr Andrews to seek specific, verifiable, and where possible court admissible information to advance our investigations,” he said.

 

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UOB to close Myanmar Airways International bank accounts by Aug 15​

Any remaining balances will be remitted when the five bank accounts that MAI holds with UOB are closed. ST PHOTO: KUA CHEE SIONG

Aqil Hamzah

July 11, 2023

SINGAPORE – United Overseas Bank (UOB) will close all five Myanmar Airways International (MAI) accounts by Aug 15, despite appeals by the airline to keep them open.
In a letter signed by MAI chief executive Saravanan Ramasamy and sent to business partners, the bank proposed a timeline “to allow a smooth transition and minimise disruption”.
The letter, seen by The Straits Times, also included correspondence from UOB dated June 26. It said that by July 1, no cash or cheque deposits will be allowed into MAI accounts with UOB.
The airline will also have to stop using the bank to make payments to others by July 21, neither will anyone be able to make payments or transfer funds to the bank, except those from the International Air Transport Association.
After the Aug 15 deadline, any balance in the five MAI accounts will be “remitted”, said UOB in its correspondence with the carrier.
It has also asked MAI for a list of upcoming transactions and supporting documents to “indicate the type of goods being transported through MAI’s cargos”, citing examples such as cargo manifests and security declarations.
In the meantime, UOB said it will step up its monitoring of MAI accounts, adding that there will be delays in the processing of payments and collections, although no reasons were given behind the closure of the accounts in the document.

MAI said it was making alternative arrangements, including opening accounts with DBS, among other banks.
In response to queries, a DBS spokesman said the bank is unable to provide specific details of account holders but any business that wishes to open an account will have to undergo a raft of standard checks.
The spokesman said: “These include understanding the nature and purpose of banking relations… and screening for sanctions or other negative information.

“Accounts are not opened unless these checks are satisfactory to the bank.”
The move by UOB comes two months after the release of a United Nations report which detailed how the Myanmar military imported at least US$1 billion (S$1.34 billion) in arms and raw materials to manufacture weapons since the February 2021 coup.
Compiled by UN Special Rapporteur Tom Andrews, the 56-page report said Singapore banks have been “used extensively by arms dealers”. Three of them - DBS, UOB and Oversea-Chinese Banking Corporation - are among the banks suspected of holding “substantial reserves” belonging to Myanmar, the report said.
It added that Singapore should “provide clear guidance to banks in their jurisdictions on the need for enhanced due diligence on all transactions involving Myanmar”.

After the report’s publication on May 17, a Monetary Authority of Singapore (MAS) spokesman said in response to media queries that banks have been exercising greater due diligence on all transactions that involve Myanmar entities and individuals which present higher risk.
The regulator added that the banks are alert to the risk of shell companies and concealed networks of related entities being used to obscure links to the Myanmar military, and have deployed measures such as data analytics to detect any ties.
Meanwhile, Foreign Minister Vivian Balakrishnan said in a written parliamentary reply on July 3 that the SIngapore has not imposed a general trade ban on Myanmar, but remains committed to preventing the sale of items that could have military applications.
Dr Balakrishnan added that 47 entities were initially flagged, followed by 91 others. Of those flagged, nine are no longer registered with the Accounting and Corporate Regulatory Authority, and thus unable to carry on business or operate as legal entities here.
He said most of the initial 47 no longer have business facilities with Singapore banks either.
The Irrawaddy news outlet, which is published by Myanmar journalists exiled in Thailand, carried a report on the cancellation of MAI’s UOB accounts on Monday. The report also said MAI has ties to the ruling junta.
MAI is part of the 24 Hour Group of Companies, which is run by Mr U Aung Aung Zaw, according to information found on the 24 Hour website. The Irrawaddy report identified him as a collaborator of the regime.
It also said MAI and the Myanmar Air Force share aircraft, while the junta’s senior leadership uses the airline for international travel.
When contacted, UOB said it was unable to comment on any client relationships.
The Straits Times has contacted MAS, MAI and the Ministry of Foreign Affairs for more information.

 

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Financial institutions required to combat higher money laundering risks from wealthy clients: MAS​

MAS said it requires financial institutions to have strict anti-money laundering controls in place. ST PHOTO: JASON QUAH

Prisca Ang

MAY 24, 2023

SINGAPORE – Financial institutions are required to alert the police and the financial regulator if they suspect that a transaction could be related to a crime, although there is no threshold set for when they must flag these activities.
They are also required to step up their measures to manage the higher risks of money laundering and terrorism financing posed by customers such as wealthy individuals, said a Monetary Authority of Singapore (MAS) spokesman on Tuesday.
MAS said financial institutions must file Suspicious Transaction Reports with the police, and extend a copy to the regulator, if they have any reason to suspect that a financial transaction could be linked to a crime.
It was responding to queries from The Straits Times about anti-money laundering measures in the financial industry following an Angolan tycoon’s recent failed bid for $2.6 million to be released from his Singapore bank account. He was sentenced in March 2022 to nine years’ jail in the southern African nation for embezzlement, money laundering and tax fraud.
Carlos Manuel De Sao Vicente had more than US$558 million (S$753 million) in a Bank of Singapore (BOS) account which was seized by the Commercial Affairs Department on Feb 19, 2021.
The white-collar crime unit also seized two other accounts from the same bank – one belonging to De Sao Vicente’s wife, Irene, which had more than US$5 million, and the other belonging to his son Ivo, with US$10.5 million in it.
On Sept 28, 2022, De Sao Vicente applied to the Singapore High Court for the release of US$4.9 million from his frozen account, later revising the amount to $2.6 million.

He contended that he had no other source of funds and needed the money to pay his legal expenses in Singapore, Switzerland and Angola, and for legal representations in various international organisations.
The court dismissed his application on May 17.
In his written judgment, Justice Vincent Hoong said it was difficult to survey the true extent of De Sao Vincente’s wealth, given the numerous cross-jurisdictional transfers of large sums between his bank accounts and the international nature of his assets.

Mr Chew Qi, BOS’ global head of financial crime compliance, said the bank acted promptly when news of measures taken by Swiss regulators were made public in 2020.
Swiss financial regulator Finma reprimanded Swiss bank Banque Syz in September 2020 for allowing an Angolan client to transfer millions in and out of his account with the bank without investigating the possible reasons for the substantial growth in his wealth.
Mr Chew said BOS has robust anti-money laundering and client due diligence controls in place, starting when a customer begins their relationship with the bank.
“Ongoing monitoring is conducted, including regular screening for adverse news, monitoring of transactions to ensure that they are consistent with the client’s profile and sources of wealth, and stepping up surveillance for higher risk situations.
“Where the bank becomes aware of adverse news on our clients, we have protocols to respond swiftly to restrict account activity and to exit the relationship. These stringent measures were applied in the case of (De Sao Vicente),” he told ST on Tuesday.

MAS said it requires financial institutions (FIs) to have strict anti-money laundering controls in place. This includes carrying out due diligence on their customers to understand their background and purpose of opening an account.
“FIs also monitor customer transactions on an ongoing basis, to ensure that transactions are consistent with the purpose of the account and not unusual,” it said, adding that FIs are required to apply enhanced measures for customers who present higher money laundering and terrorism financing risks.
These measures include establishing customers’ source of wealth and funds, and close monitoring of their accounts for anomalous transaction spikes and unexpected fund flows, especially to or from higher risk jurisdictions.
MAS said: “There is no prescribed definition of a higher risk customer; various factors have to be taken into account to determine if a customer presents a higher money laundering or terrorism financing risk.
“Given their attributes and size of transactions, high net worth individuals are often assessed as presenting higher money laundering and terrorism financing risks.”
MAS added that Suspicious Transaction Reports support its broader supervisory and surveillance role to ensure that FIs have robust defences against financial crime.

 

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Police investigate 312 suspected scammers, money mules involved in over 1,200 cases​

A total of 203 men and 109 women were rounded up in the police operation, which took place between June 9 and June 22. ST PHOTO: CHONG JUN LIANG


JUN 26, 2023

SINGAPORE – The police are investigating 312 suspected scammers and money mules, aged between 16 and 83, after a two-week operation.
A total of 203 men and 109 women were rounded up in the police operation, which took place between June 9 and June 22.
They are assisting in investigations for their suspected involvement in more than 1,200 scam cases where victims reportedly lost more than $6 million.
The scams involved mainly loan scams, Internet love scams, fake friend call scams, government official impersonation scams, job scams and e-commerce scams.
The suspects are being investigated for cheating, money laundering or providing payment services without a licence.
The offence of cheating carries a jail term of up to 10 years and a fine, while money laundering carries a jail term of up to 10 years, a fine of up to $500,000, or both.
Carrying on a business to provide any type of payment services without a licence has a jail term of up to three years, a fine of up to $125,000, or both.

To avoid being an accomplice to crimes, members of the public should always reject requests by others to use their bank accounts or mobile lines as they will be held accountable if these are linked to crimes, the police said.

 

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Boy, 16, among 6 people accused of money laundering-related offences linked to scams​

Shaffiq Alkhatib
Court Correspondent

JUL 12, 2023

SINGAPORE - A 16-year-old boy was among six people charged in court on Wednesday after they allegedly took part in activities linked to money laundering involving banking-related phishing scams that used malware.
The teenager cannot be named as those below 18 are protected under the Children and Young Persons Act.
At the time of his alleged offences, he had accounts with four banks – UOB, OCBC, HSBC and Standard Chartered.
He is accused of giving his Internet banking log-in details linked to the accounts to unknown parties on four separate occasions in January and June 2023.
He is said to have engaged in a conspiracy with the unknown parties to gain unauthorised access to programs hosted on the servers of the banks’ Internet banking systems.
The teen, who faces four charges under the Computer Misuse Act, was among five people accused of taking part in money laundering activities linked to banking-related phishing scams involving malware that resulted in losses from the victims’ bank and Central Provident Fund (CPF) accounts.
The others are Allysha Qistina Zulkifli, 20; Kevis Toh Yong Heng, 24; Lim Qing Yang, 27; and Spencer Tng Wei, 29. They each face between one and five charges.

In a statement on Wednesday, the police said the five people were arrested between June 19 and 23 after officers received multiple reports about malware being used to compromise Android mobile devices.
Unauthorised transactions were then made from the victims’ bank and CPF accounts, even though they did not divulge information such as their Internet banking credentials to anyone.
The police added that between January and June 2023, there were more than 700 reports of malware-related scams and losses amounting to about $8 million.

Nine of these malware-related scams involved CPF savings and bank accounts, with losses amounting to at least $335,000.

The police then worked with banks to facilitate the swift freezing of accounts, leading to the recovery of more than $94,000.
The monies from the victims’ CPF accounts in these nine cases were withdrawn before the enhanced implementation of Singpass facial verification.
Mohamed Fazli Abdul Hamid, 42, who was allegedly involved in an unrelated case, was the sixth person charged on Wednesday.
He is accused of cheating and an offence under the Computer Misuse Act.
In a separate statement on Tuesday evening, the police said investigations revealed that Fazli had allegedly deceived a bank into opening an account.
He later handed over information such as the Internet-banking log-in password linked to his account to an unknown person who had offered him $500 in return for “renting” his bank account for two weeks, the police added.
The bank account was subsequently used to launder criminal proceeds amounting to more than $4,900.
The cases involving the six accused have been adjourned to August.
OCBC states on its website that malware is a type of malicious software used by cybercriminals to infect their target’s computers and mobile devices so as to perform criminal activities.
Once a device is infected, a cybercriminal may steal confidential data such as log-in credentials and use these details to conduct fraudulent money transfers from their victim’s account, the bank added.

 

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MAS seeks views on framework to combat potential money laundering at single-family offices in S’pore​

There are about 1,100 SFOs in Singapore, going by the number of those which had been awarded tax incentives by MAS as at end 2022. PHOTO: ST FILE

Prisca Ang

JUL 31, 2023

SINGAPORE – The Monetary Authority of Singapore (MAS) plans to step up its fight against potential money laundering at single-family offices (SFOs) through a revised framework to strengthen the country’s defence against such risks.
MAS is proposing that all SFOs operating here be subject to anti-money laundering controls by introducing a consistent set of exemption criteria from licensing requirements.
The financial regulator launched a public consultation on these measures on Monday.
An SFO usually manages the assets of only one wealthy family and is wholly owned or controlled by its members.
These entities do not manage third-party assets, so they can currently rely on existing class exemptions from licensing requirements under the Securities and Futures Act or apply to MAS for case-by-case exemptions.
To qualify for the proposed class exemption, SFOs must be incorporated in Singapore, notify MAS and confirm that it complies with the qualifying criteria under the class exemption when they start operations here.
They must also report annually on total assets managed after the end of each calendar year, and maintain a business relationship with an MAS-regulated financial institution that will perform anti-money laundering checks on SFOs.

Interested parties can go to bit.Iy/43QJpCJ to submit their comments by Sept 30.
There are about 1,100 SFOs in Singapore, going by the number of those that had been awarded tax incentives by MAS as at end-2022. This is up from 700 at end-2021.
The consultation comes after MAS managing director Ravi Menon said in July that the authority will take additional measures to strengthen surveillance and defence against potential money laundering in the SFO sector.

MAS identifies the SFO sector as a key risk when it comes to wealth inflows into Singapore.
“Be it high-net-worth individuals or SFOs, MAS expects financial institutions servicing them to apply stringent anti-money laundering controls,” he said at the regulator’s annual report briefing.
MAS issued a circular in March telling financial institutions to be alert to additional money laundering and terrorism financing risks when dealing with arrangements that are used for wealth management purposes. These include family offices.
Mr Menon noted that family offices in Singapore are already substantially covered for money laundering risks.
Multi-family offices, which manage third-party funds and are licensed by MAS, are already subject to the same anti-money laundering controls that the authority applies to all regulated financial institutions.
Meanwhile, the majority of SFOs in Singapore – which are granted tax incentives by MAS – are required to have an account with a bank here, and are thus subject to anti-money laundering controls applied by the banks.
The remaining SFOs are likely to have engaged the services of other financial institutions or professional services entities such as lawyers or corporate service providers in Singapore that are similarly required to apply suitable anti-money laundering measures on clients.
MAS said on Monday that the new measures will allow it to better monitor SFOs operating in Singapore and address any money laundering risks in the sector.

 

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‘I just did it for the money’: Why young people become money mules for scammers​

Between 2020 and 2022, more than 19,000 suspected money mules were investigated by the police. Many were individuals younger than 29.​

Lured by fast cash deals, they were used by scam syndicates. Two young people share how they were recruited by scammers to sell their bank accounts and Singpass credentials.
Christine Tan

AUG 13, 2023

SINGAPORE – Zack (not his real name) was a 17-year-old student in 2021 receiving $10 a day from his mother when he came across an advertisement in a Telegram group chat that promised payment for opening bank accounts.
He contacted the person who posted the ad. Communicating via text messages on Telegram, the man, who identified himself only as J, said the bank accounts would be used for investments.
Zack did not ask too many questions. He was promised $800 for each bank account he opened.
The teenager set up two accounts – one with UOB and another with OCBC Bank – and deposited money given by J into each account.
Zack met J some time later to pass him the bank cards and details. After he met J, Zack persuaded his friends and strangers to open bank accounts for the man.
“I asked around, and it spread from there,” said Zack, who added that he made money off these people.
“For every bank card, I got $800. I gave them $400, and I kept $400.

Or I might give them $300, and earn $500 for myself. To me, it was win-win,” said Zack.
In two months, he earned a total of $2,800, but in September 2021, three plainclothes police officers arrested him at his home in Bukit Merah.
Zack then learnt from the police that the accounts he sold were used to launder money from scam victims.

He was told he was a money mule – someone who allows criminals to control their accounts or help them perform transactions.
“I didn’t think I was harming anyone. I didn’t know that (criminals) were using it to scam people,” said Zack.
Although he claimed he was clueless, he admitted he was suspicious that he could earn a large sum in a short time, and that J never gave his full name.
Zack, now 19, said: “You don’t think you will get caught, but the law always catches up.”

The police investigated more than 19,000 money mules between 2020 and 2022, but fewer than 250 were prosecuted. It was difficult to prove that they had intended to facilitate criminal activities by selling their bank accounts and Singpass credentials.
But in May, tougher laws aimed at clamping down on money mules and those who sell their bank accounts or Singpass credentials were passed.
The changes to the laws introduced the new offences of rash and negligent money laundering, and disclosing or dealing in Singpass credentials for criminal activities.
Rash money laundering is when the money mule knows or has some idea that what he is doing involves a criminal element.
Negligent money laundering is when a person continues with a transaction despite the presence of red flags that an ordinary, reasonable person would notice.
The changes come amid findings which showed more young people were being recruited as money mules.
A sample study by the police of scam cases reported between 2020 and 2022 showed that 45 per cent of 113 money mules investigated were 25 years old and under.
A 15-year-old was among the suspects assisting in investigations for being a suspected scammer or money mule in the first half of 2023.
Mr Azri Imran Tan of IRB Law said that in the past year, at least 10 young people have approached him for legal advice on such offences. He said about three young people a year approached him for advice on similar matters in 2020 and 2021.
Invictus Law founder Josephus Tan said his firm saw up to 15 individuals under 30 involved in money mule offences in the past year.
“It is a worrying trend. We see more of such scam-related cases as compared to 10 years ago, when they largely involved drugs and rioting cases,” added Mr Tan.

Online gambling​

Irfan (not his real name) had just dropped out of the Institute of Technical Education in 2021 when he heard that he could earn money by opening bank accounts for others to use for online gambling.
Unlike Zack, who was recruited by someone he met online, Irfan, now 18, said he was reeled in by his secondary school friends who were in the “business”.
They said he could either get a one-time payment of $400 by selling an account, or a monthly payout of $150 by leasing it.
A friend gave him $1,000 to open two bank accounts, and a SIM card with a new number to register the accounts.
“It was a very simple process. All I had to do was to meet him at a shopping mall, and he prepped me on what to say to the bank staff,” said Irfan.
He sold one UOB account, and leased an OCBC account to his friend. He made $850 in three months.
Then, he started receiving bank statements in the mail, including one which was 60 pages long. It showed transactions from strangers, including transfers of up to $80,000.
“I thought (criminals) were scamming people from overseas. And I was afraid it would all lead back to me,” said Irfan.
Two months later, his bank accounts were frozen. He was investigated by the police the following year.
Banks actively detect money laundering by using monitoring systems that alert them to transactions above a certain amount, said Ms Caryn Leong, regional anti-money laundering director in Asia-Pacific for the Association of Certified Anti-Money Laundering Specialists.
Once a bank or Singpass account has been flagged, the Commercial Affairs Department’s Anti-Scam Centre will immediately disrupt the account to prevent further abuse and carry out investigations, the Singapore Police Force said in response to queries from The Straits Times.

Loan shark runner​

Kezrin (not his real name), 23, searched Telegram for jobs after his release in 2022 from a 15-month jail sentence for being a loan shark runner.
He was earning $70 a day working for a moving company but wanted more. After contacting someone on Telegram, he sold his Singpass details for $700.
“I knew I would have a police case, but I just did it for the money,” he said.
He figured the sentence would be short. Someone he met in prison claimed he was sentenced to three weeks’ jail for selling his Singpass.
Kezrin said: “Compared to 15 months, three weeks is kacang (easy).”
He was caught two months later and charged in court with the unauthorised disclosure of access code for an unlawful purpose.
Unlike Irfan, who received a stern warning from the police, Kezrin will be spending time behind bars.
On Aug 3, he was sentenced to a total of 10 weeks in jail – six weeks for selling his Singpass details while out on a remission order, and four weeks for an unrelated offence of voluntarily causing hurt.
It could have been worse.
With changes to the law, those convicted of rash money laundering can be jailed for up to five years and fined up to $250,000, while those convicted of negligent money laundering can be jailed for up to three years and fined up to $150,000.
Those convicted of assisting another to retain benefits from criminal conduct can be jailed for up to three years and fined up to $50,000.
Zack had described himself as a “victim” who was tricked into selling his bank accounts without knowing what they were truly used for. But Mr Azri of IRB Law said ignorance is no plea.
“It would no longer be a defence, whether honestly or otherwise, to say, ‘I didn’t know that the bank accounts or Singpass details I provided would be used for criminal activity’,” he said of the new law.
He added that the youth he represented thought they would not get caught or that they would be punished lightly.
Mr Tan of Invictus Law said the law is right to prosecute offenders who had suspicions but proceeded anyway.
“They started off as victims and became perpetrators. The very fact that you enabled a crime – that makes you an accomplice,” he added.



Money mules also tend to dismiss their actions as a minor crime because nobody is physically hurt, said Mr Tan.
“It could damage the entire financial system, cause people to lose their jobs, or be used to fund criminal or terrorist organisations,” he added.
Currently, youth offenders who commit minor offences may not be hauled to court but made to undergo a rehabilitation programme, the Ministry of Social and Family Development said in response to ST’s queries.
Those who are charged may be placed on probation or committed to a juvenile rehabilitation centre.
With tougher laws, Mr Mark Yeo of Kalco Law said more people will be prosecuted for money mule offences.
He added that as more cases are taken to court, punishments meted out may become harsher over time as the legal system would consider how the full spectrum of sentences should be used.

His colleague Justin Ng said the authorities had similarly clamped down on loan shark runner offences in the past.
After a number of teenagers were recruited and arrested for harassing debtors, the penalties surrounding loan shark activities were enhanced to deter would-be criminals.
For example, first-time offenders found guilty of loan shark harassment face a fine of between $5,000 and $50,000, jail of up to five years, and up to six strokes of the cane.
“There is a good impression out there that you don’t touch loan shark activities because everyone knows that the sentences are very harsh... I think deterrence is quite effective,” added Mr Ng.

Back in school​

Irfan is now back in school. He is currently serving an internship in the tourism industry, and also has a part-time job as an administrative assistant at a boxing club.
He earns around $500 a month.
Kezrin is motivated by his girlfriend to keep on the straight and narrow, saying: “She told me if I need money, I can ask her, but don’t go back to doing such things again.”
Zack still reports to the Police Cantonment Complex once a month as part of his bail conditions.
One day, he saw J there. The man was also nabbed, but unrepentant.
He texted Zack to ask if he would want to sell his bank accounts again. The teenager rejected the offer.
“I am just a pawn. J is just like a horse or a rook. But there is always a queen and a king. They are never going to get caught because they are going to have people before them that will get caught,” he said.
“When you get caught, the money has no more value. If you go and earn that money with your own hands and your heart, it will be more valuable to you.”

 

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7 people who allegedly disclosed banking, Singpass details to scammers to be charged​

The scams involved malware which resulted in losses from victims’ bank accounts. PHOTO ILLUSTRATION: ST FILE
Vihanya Rakshika
Correspondent

August 16, 2023

SINGAPORE - Seven people, including three teenagers, will be charged over relinquishing their bank accounts and/or Singpass credentials for money laundering activities linked to banking-related phishing scams earlier in 2023.
These scams involved malware that resulted in losses from victims’ bank accounts, the police said in a statement on Wednesday.
The suspects, aged between 17 and 35, were arrested by officers from the Commercial Affairs Department of the Singapore Police Force and will be charged in court on Thursday.
Between June 7 and July 12, the police received several reports informing them that Android mobile devices were compromised, resulting in unauthorised transactions that were made from victims’ bank accounts.
The police said that these victims had not revealed their Internet banking credentials, one-time passwords or Singpass credentials to anyone. In these cases, the victims had responded to advertisements on social media platforms such as Facebook.
Those who responded to the advertisements were instructed by scammers to download an “Android Package Kit” (APK) from a non-official app store to facilitate the purchases. Malware was installed on the mobile devices of the victims who had downloaded the APK.
Through phone calls or text messages, the scammers convinced the victims to turn on accessibility services on their Android phones. This meant that the phones’ security was weakened and it allowed the scammers to take full control of the devices remotely.

The scammers could record every keystroke and steal banking credentials stored in phones. It allowed them to remotely log in to the victims’ banking apps, add money mules as payees, raise payment limits and transfer monies out to money mules.
They could also remotely delete SMS and e-mail notifications of the bank transfers to cover their tracks.
Among the seven suspects is a 17-year-old who had handed over his Internet banking credentials and ATM card to an unknown person in May.

The person had offered him at least $400 in return.
In June, an 18-year-old woman participated in an online investment scheme on Telegram which offered her at least $10,000 in return for using her two bank accounts.
In early June, a 19-year-old man revealed his Singpass and Internet banking credentials to an “online friend”.
In the same month, a 20-year-old man followed an advertisement on Telegram offering “fast cash” and disclosed his Internet banking credentials to an unknown person.
Between May and June, a 27-year-old man responded to an advertisement on Telegram which offered “fast cash”. He disclosed his and his wife’s Internet banking credentials to an unknown person.

In July, two men, aged 26 and 35, responded to a Telegram advertisement which offered “fast cash”. They disclosed their Internet banking credentials to unknown persons separately.
These accounts were believed to be used to launder criminal proceeds.
The offence of disclosing Singpass credentials carries an imprisonment term not exceeding three years or a fine not exceeding $10,000, or both, for a first-time offender.
Abetting unknown persons to secure unauthorised access to the bank’s computer system, for a first-time offender, carries a fine not exceeding $5,000, an imprisonment term not exceeding two years, or both.
The police reminded the public that individuals will be held accountable if they are found to be linked to such crimes.

 

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About $1b in cash, assets seized and frozen in one of S’pore’s biggest anti-money laundering operations​

Police seized more than $23 million in cash and hundreds of luxury items, and issued prohibition of disposal orders on dozens of cars and multiple bottles of liquor and wine. PHOTOS: SINGAPORE POLICE FORCE

More than $23 million in cash was seized by the police in the raids. PHOTOS: SINGAPORE POLICE FORCE

The police said suspected forged documents were used to substantiate the source of funds in Singapore bank accounts. PHOTO: SINGAPORE POLICE FORCE

More than 270 pieces of jewellery, as well as luxury bags, watches and gold bars, were seized by the police. PHOTO: SINGAPORE POLICE FORCE

The group lived in good class bungalows and high-end condominiums, and owned luxury cars. PHOTO: SINGAPORE POLICE FORCE

Wong Shiying and David Sun

August 16, 2023

SINGAPORE - In one of the biggest anti-money laundering operations here, the Singapore Police Force (SPF) rounded up a group of foreigners who had amassed about $1 billion worth of assets here.
The assets, which included properties, luxury cars and goods, were either seized, frozen or issued with prohibition of disposal orders.
The group lived in good class bungalows (GCBs) and high-end condominiums, and owned luxury cars.
The police said it received information of possible illicit activities, including suspected forged documents used to substantiate the source of funds in Singapore bank accounts.
On Tuesday, the police conducted a massive islandwide blitz, hitting several GCBs and high-end condos across Singapore simultaneously to nab several of the suspects. The areas raided included Tanglin, Bukit Timah, Orchard Road, Sentosa and River Valley.
Ten people, including a woman, were arrested and charged on Wednesday night.
They are aged 31 to 44, and are suspected to be involved in offences of forgery, money laundering and resisting arrest.

Another 12 are assisting in investigations, while eight more people are currently on the run and have been placed on a wanted list.
In a release on Wednesday, the police said the blitz involved more than 400 officers, including those from the Criminal Investigation Department, Commercial Affairs Department (CAD), Special Operations Command or riot police, and Police Intelligence Department.
The group of foreign nationals are allegedly involved in laundering the proceeds of crime from their organised crime activities overseas, linked to scams and online gambling.

The police had identified them through extensive investigations, including the analysis of suspicious transaction reports (STRs) made by financial institutions about suspicious activity.

More than 250 luxury bags and watches were seized by the police during the operation. PHOTOS: SINGAPORE POLICE FORCE
On Wednesday evening, the Monetary Authority of Singapore (MAS) said it has been collaborating closely with CAD to identify potentially tainted funds and assets in the financial system and prevent their dissipation.
It added that red-flag indicators such as suspicious fund flows, dubious documentation of source of wealth or funds, and inconsistencies or evasiveness in information provided had been picked up by the financial institutions that filed the STRs.
MAS said it has ongoing supervisory engagements with the financial institutions where the potentially tainted funds have been identified, and firm action will be taken if breaches are found.
The police said prohibition of disposal orders were issued against 94 properties and 50 vehicles, with a total estimated value of more than $815 million, and multiple ornaments and bottles of liquor and wine.

Prohibition of disposal orders were issued against multiple ornaments, as well as bottles of liquor and wine, cars and property. PHOTO: SINGAPORE POLICE FORCE
The orders mean the suspects cannot sell these properties and vehicles.
The police also seized more than 35 related bank accounts with an estimated total balance of more than $110 million for investigations and to prevent transfers of the suspected criminal proceeds.
Also seized were more than $23 million in cash, more than 250 luxury bags and watches, over 120 electronic devices such as computers and mobile phones, more than 270 pieces of jewellery, two gold bars, and 11 documents with information on virtual assets.

Among those arrested was a 40-year-old Cypriot national who was arrested at the GCB he was living in at Ewart Park in Bukit Timah. The police said officers had identified themselves outside his bedroom and ordered him to open the door.
Instead, the man allegedly jumped off the second-floor balcony and was found hiding in a drain, injured. He was taken to hospital.
He allegedly had other foreign passports believed to be issued by China and Cambodia.
The police seized more than $2.1 million worth of cash from the man, and issued prohibition of disposal orders for 13 properties and five vehicles with an estimated value of more than $118 million. They also seized multiple ornaments and bottles of liquor and wine, and froze four related bank accounts with more than $6.7 million inside.

CAD director David Chew said the police will work with law enforcement agencies and financial intelligence units to detect, deter and prevent Singapore from hosting such criminal elements.
He said: “We have zero tolerance for the use of Singapore as a safe haven for criminals or their families, or for the abuse of our banking facilities.
“Our message to these criminals is simple – if we catch you, we will arrest you. If we find your ill-gotten gains, we will seize them. We will deal with you to the fullest extent of our laws.”
Ms Ho Hern Shin, MAS’ deputy managing director (financial supervision), said Singapore is vulnerable to transnational money-laundering risks as it is a global financial hub.
She said: “This case has highlighted that vigilance and prompt filing of STRs by our financial institutions have helped law enforcement authorities to identify those suspected of carrying out illicit activities.
“But it has also highlighted that as a global financial hub, Singapore remains vulnerable to transnational money-laundering/terrorism-financing risks, and that MAS and financial institutions need to continue to work together to strengthen our defences against these risks.”