Title: TwoMen Jailed in $2.2 Billion Money-Laundering Case: A Blight on Singapore’s Reputation

Date: April 9, 2024

Overview

Two men, Su Wenqiang and Su Haijin, were recently jailed in relation to a massive money-laundering case in Singapore, estimated to be worth $2.2 billion. This case, believed to be the largest in recent years, has raised concerns about the city-state’s financial crime prevention measures.

The Case

The two men, Su Wenqiang, a 32-year-old Cambodian originally from China, and Su Haijin, a Chinese-born Cypriot, were found to be involved in online gambling in the Philippines and used multiple banks to launder money. The court discovered that they had utilized banks such as Bank of China, ICBC, Credit Suisse, DBS, UOB, among others, for money laundering.

Seized assets amounted to around S$6 million in cash, 55 properties, 15 vehicles, and more than S$38 million in cryptocurrencies from the duo and their companies.

Su Wenqiang pleaded guilty to concealing or transferring benefits from criminal conduct and was sentenced to 13 months in prison. Su Haijin, who had assets totaling S$170 million seized, pleaded guilty to several similar charges and was given a 14-month prison term.

Concerns about Anti-Money Laundering (AML) Systems

The scale of the funds and assets laundered by Su’s gang raised questions about the effectiveness of global AML systems. Martin Purbrick, a financial consultant and crime analyst, highlighted the issue: “A criminal gang was able to comfortably use the banking system and launder at least US$2 billion without detection, illustrating a need for a review of AML systems.”

Singapore’s Response

In response to the case, the Monetary Authority of Singapore (MAS) has initiated a review of its AML regulations and set up an inter-ministerial panel. Additionally, MAS established the COSMIC digital platform, enabling major banks to share customer information and identify suspected money launderers.

MAS has also tightened cryptocurrency regulations.

The Evolving Threat of Digital Payments

Despite these measures, criminals are reportedly becoming more sophisticated and nimble in the era of digital payments, with online gambling, sports betting, and cyberfraud on the rise as increasingly profitable and global activities.

Organised crime groups are profiting through new digital businesses to hide the proceeds of crime, emphasizing the need for radical changes in the fight against money laundering and other financial crimes.

The Impact on Singapore’s Reputation

Critics argue that radical changes are necessary to stay ahead of the evolving sophistication of organised crime groups and protect the reputation of Singapore as a global financial hub.