Singapore police and MAS swoop on Cypriots, Turk among ten foreigners over 'tainted funds'

The Monetary Authority of Singapore (MAS) said on 16 August that it had worked closely with the Commercial Affairs Department (CAD) to facilitate the development of the case that led to the Police's arrest, on 15 August, of 10 individuals for suspected involvement in offences including forgery and/or money laundering and resistance to lawful apprehension.

MAS said it has also been collaborating closely with CAD to identify potentially tainted funds and assets in its financial system and prevent their dissipation. 

Singapore Police said in a separate statement that the 10 people, aged between 31 and 44, were arrested for their suspected involvement in offences of forgery and/or, money laundering, and resistance to lawful apprehension.

They included two Cypriot nationals, a Turkish national, three PRC nationals, three Cambodian nationals and a Ni-Vanuatu national.

"Twelve other persons are assisting with investigations and eight other persons are currently wanted by the Police. These persons are believed to have connections amongst themselves. All the persons involved are neither Singapore Citizens nor Permanent Residents", the police statement said. 

The Police received information of possible illicit activities including the use of suspected forged documents that were used to substantiate the source of funds in Singapore bank accounts. Through extensive investigations and follow-up from intelligence - including the analysis of Suspicious Transaction Reports (STRs) - the police said it identified a group of foreign nationals suspected to be involved in laundering the proceeds of crime from their overseas organised crime activities including scams and online gambling.

On 15 August 2023, more than 400 officers from the Commercial Affairs Department, the Criminal Investigation Department, Special Operations Command and the Police Intelligence Department conducted simultaneous raids at multiple locations island-wide, including residences such as Good Class Bungalows (GCB) and condominiums, leading to the arrest of the ten persons.

Prohibition of disposal orders were issued against 94 properties and 50 vehicles, with a total estimated value of more than S$815m, as well as multiple ornaments and bottles of liquor and wine. The Police also seized more than 35 related bank accounts with a total estimated balance of more than S$110m for investigations and to prevent dissipation of suspected criminal proceeds.

Cash, including foreign currencies, amounting to more than S$23m, more than 250 luxury bags and watches, more than 120 electronic devices such as computers and mobile phones, more than 270 pieces of jewelleries, two gold bars, and 11 documents with information on virtual assets, the police said. 

MAS further said in its statement: "Intelligence and information from suspicious transaction reports (STRs) filed by financial institutions (FIs) in Singapore had earlier alerted CAD to suspicious activities which have been attempted through the financial system.

"Red flag indicators picked up by FIs that prompted them to file STRs include suspicious fund flows, dubious documentation of source of wealth or funds, and inconsistencies or evasiveness in information provided to the FIs. 

"MAS takes this case seriously and has been in touch with the FIs where the potentially tainted funds have been identified." 

"Supervisory engagements with these FIs are ongoing. MAS will take firm action against FIs which are found to have breached MAS' stringent requirements on anti-money laundering/countering the financing of terrorism, or to have inadequate controls against money laundering/terrorism financing (ML/TF) risks. 

"MAS works closely with our FIs to guard against the abuse of our financial system for illicit activities. FIs are regularly reminded to stay vigilant to ML/TF risks, and to ensure that fund flows into Singapore are and remain legitimate. MAS has also been conducting inspections focusing on FIs active in the wealth management space, to ensure that robust controls are in place to effectively detect and deal with ML/TF risks." 

Ho Hern Shin, deputy managing director (Financial Supervision), MAS, said: "This case has highlighted that vigilance and prompt filing of STRs by our FIs 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 ML/TF risks and that MAS and FIs need to continue to work together to strengthen our defences against these risks."