SINGAPORE – The first sign of trouble, that something big was afoot, came in 2021 when the authorities noticed possibly forged documents being used to substantiate sources of funds in bank accounts here.

So as not to alert the suspected money launderers, only a small group of police officers was involved in initial investigations.

After an extensive probe in 2022, the police uncovered a web of people allegedly transferring money to Singapore from abroad that was suspected to be earned from criminal activities. Some of the people were connected by family ties.

The assets seized or issued with prohibition of disposal orders following islandwide raids conducted on Aug 15 are now worth more than $2.8 billion, making it one of the world’s largest money laundering cases.

Second Minister for Home Affairs Josephine Teo said this in a ministerial statement on Tuesday to address about 60 parliamentary questions filed on the case.

She said the authorities were alerted in 2021 when they picked up several signals, including the use of suspected forged documents to support sources of funds in bank accounts here.

Some suspicious transaction reports (STRs) were filed by financial institutions and other companies, and the police investigated these alerts.

In early 2022, the police launched an extensive intelligence probe that uncovered a web of people believed to be connected to one another, including by familial ties.

Mrs Teo said: “The police analysed the information and probed further, quietly. To avoid alerting the suspects, the work was kept to a very small group of officers, and a decision was made to hold off any enforcement or overt investigative actions.”

She said the aim of the police was to develop as full a picture as possible of the suspects and their associates, their suspected criminal activities and their assets, before moving against them.

Mrs Teo added: “As the probe progressed, the web uncovered by the police grew and grew.

“More and more individuals were implicated in the alleged money laundering operation, and more and more of their assets held in Singapore were discovered. The police painstakingly and discreetly traced their ties and assets.”

She highlighted that anti-money laundering probes of this scale and nature are complex.

She said: “Had the suspects caught wind of our probes, the suspects and their assets might have fled, and the investigations and the entire operation might have been jeopardised.”

Mrs Teo said that earlier in 2023, the police consulted the Attorney-General’s Chambers, which decided there was sufficient reason to suspect that the criminal offences had been committed in Singapore.

Following extensive reviews of information and evidence, the police conducted a massive islandwide blitz on Aug 15 that involved more than 400 officers led by the Commercial Affairs Department.

Nine men and one woman were arrested and charged the next day with offences including money laundering, forgery and resisting arrest.

It is Singapore’s worst money laundering case so far.

Addressing reports from international and domestic news outlets that the operation had been done at the behest of China, Mrs Teo said: “This is completely untrue. Singapore does not need another country to tell us what to do to enforce our laws, nor will we do anything unless it is in our own interests.

“In this case, we started investigations because we suspected that offences had been committed in Singapore. Once we confirmed our suspicions, we acted.”

In an update on the case, which is now before the courts, Mrs Teo said the proceeds most likely came from criminal activities abroad, including illegal online gambling and unlicensed moneylending.

There are others who have not been arrested but are assisting with investigations, she said. Other individuals are wanted by the police for investigations, but are not in Singapore.

She said the police had conducted further operations, and the authorities have taken control of over $2.8 billion worth of assets.

These assets include 152 properties and 62 vehicles with an estimated value of more than $1.24 billion, money in bank accounts amounting to more than $1.45 billion, and cash of various currencies worth more than $76 million.

Other items include thousands of bottles of liquor and wine, cryptocurrency worth more than $38 million, 68 gold bars, 294 luxury bags, 164 branded watches and 546 pieces of jewellery.

Mrs Teo said there may be more arrests made and assets seized.

The police had said on Sept 20 that the total value of assets seized and frozen in the case stood at more than $2.4 billion.

Mrs Teo added that a number of the people arrested had donated to charities here.

“Some charities have decided on their own to ringfence these donations. Others have made police reports and plan to surrender the monies to the police,” she said.

The Commissioner of Charities will issue an advisory to encourage all charities to review their donor records.

This is to check whether they have received donations from the accused and entities linked to them, and file STRs if needed, the minister added.

The advisory will also include advice to charities on how to handle the monies. 

Calling this case one of the largest anti-money laundering operations in the world, Mrs Teo said: “We will not hesitate to take strong enforcement action against people who would use Singapore as a haven to launder proceeds of crime. We will deal with them and their ill-gotten gains to the fullest extent of our laws.”

Mrs Teo noted that from 2020 to 2022, at least 240 people were convicted of money laundering offences, largely for laundering proceeds from domestic scams.

During this period, the police seized more than $1.2 billion worth of assets. This amount is less than half of that involved in the current case.

The minister said many people, including Singaporeans, permanent residents and those on different types of immigration passes, had been interviewed in relation to the case. More will be probed as investigations continue.

She added: “Anyone who is found complicit in... wrongdoing after ongoing investigations will be dealt with in accordance with the law, regardless of their immigration status or whether they are Singapore citizens.”

The minister highlighted the three prongs in Singapore’s anti-money laundering strategy: prevention, detection and enforcement.

Stressing the importance of prevention, Mrs Teo said: “We have a robust legal and regulatory framework. Gatekeepers in various sectors have to comply with anti-money laundering requirements, including the conduct of due diligence.”

The second prong of the Government’s anti-money laundering regime is detection, said the minister.

“Our laws make it a duty for everyone – including but not limited to landlords, property developers, financial institutions and corporate service providers – to report suspicious transactions,” she said.

Finally, enforcement is imperative in Singapore’s anti-money laundering strategy, which is about taking strong action when there is suspicion of money laundering, added Mrs Teo.

To ensure that the country’s strategy to tackle money laundering remains robust, an inter-ministerial committee, led by Second Minister for Finance Indranee Rajah, will be set up to oversee the Government’s anti-money laundering efforts.

Noting that the police’s investigations in this case had strengthened Singapore’s reputation as a serious, high-quality financial hub, Mrs Teo said: “It will strengthen trust and confidence among investors, and Singaporeans, that we run a clean system that stands amongst the tallest in the world.”

When rounding off her statement, she said: “Singapore has in place a robust anti-money laundering regime. We are held in high regard internationally not just as a financial centre, but for our strong, principled and no-nonsense approach to taking down individuals who break our laws.”

She added that the country is taking steps to update its measures to keep pace with evolving risks and trends, and strengthening its capabilities to proactively detect and take firm enforcement action against wrongdoing.

“Nevertheless, this case is a reminder that even the most stringent preventive measures can be circumvented by determined criminals. But it also shows that our system is able to detect suspicious individuals and activities, and that when we do, we have the resolve and capabilities to track them down, and take them to task,” she said.