Due to the impact of the case, some Chinese people fled Singapore overnight.
Written by: Carl
Edited by: Gene
Recently, Singapore cracked its largest money laundering case in history, with the police arresting 10 individuals, all from Fujian Province, China, and seizing assets worth over 12.8 billion yuan, including 200 million yuan worth of encrypted assets. As a result of this case, Singaporean banks have strengthened their scrutiny of Chinese clients holding passports from other countries.
This case may mark the beginning of a new storm in Singapore, with a focus on digital assets and anti-money laundering efforts.
128 Billion Money Laundering Case, 2 Billion in Cryptocurrency Seized
On September 20, the Singapore Police Force announced that further action had been taken against the largest local money laundering case, resulting in the seizure of assets worth over 2.4 billion Singapore dollars (approximately 12.8 billion yuan) and the issuance of a disposal order.
In addition, the police also froze bank accounts with over 11.27 billion Singapore dollars in deposits, 76 million Singapore dollars in cash (including foreign currency), 68 gold bars, 294 designer bags, 164 watches, 546 pieces of jewelry, over 38 million Singapore dollars (approximately 200 million yuan) in encrypted currency, and 204 electronic devices.
The police stated that this case involved illegal activities such as overseas organized fraud and online gambling, and the laundering of proceeds by foreign nationals.
Earlier reports indicated that on August 15, the Singapore police conducted simultaneous operations across the island, arresting 10 individuals in affluent areas such as Bukit Timah, Orchard Road, and Sentosa Cove, with 12 individuals assisting in the investigation and 8 individuals being sought.
According to media reports, the 10 individuals arrested in this case, despite holding foreign passports, including multiple nationalities, all originated from Fujian, China, and were involved in multiple cases of gambling, money laundering, and other illegal activities in Myanmar and China. Several of them are individuals wanted by the Chinese police.
As a result of this case, Singaporean banks are intensifying their scrutiny of Chinese clients holding passports from other countries. Some banks have been reviewing account opening applications and transactions of Chinese clients holding passports related to investments, and some banks are closing accounts of clients who are citizens of countries such as Cambodia, Cyprus, Turkey, and Vanuatu.
Sources familiar with the matter told Techub News that as a result of this case, some Chinese people have fled Singapore overnight in search of a safer place.
At least 10 local and international banks in Singapore have been implicated in this case and have become the focus of public attention. In parliament, questions have been raised about why such serious criminal activities occurred despite Singapore having a robust legal and anti-money laundering framework, and how the Singapore government will strengthen checks on individuals from high-risk "golden passport" jurisdictions.
Industry analysts have suggested that the large money laundering case in Singapore may only be the prelude to a larger drama, and a new storm may be on the horizon. This money laundering case reflects significant loopholes in Singapore's anti-money laundering mechanism and the substantial interests within the industry chain.
Singapore's Loss in Web3.0
As an international financial center, Singapore has long competed with Hong Kong, China. Both are areas where Chinese people gather and are hubs for global elites and cryptocurrency industry professionals. Currently, the competition for the status of the world's Web3.0 center has become another hot topic between Singapore and Hong Kong.
On October 31, 2022, Hong Kong, China, issued a "Policy Declaration on the Development of Virtual Assets in Hong Kong," expressing its determination to compete as a global virtual asset center.
About a month later, on November 30, Singapore's Deputy Prime Minister and Finance Minister Heng Swee Keat changed his previous positive stance on Web3.0, stating in parliament that Singapore has no plans to become a hub for cryptocurrency activities and that previous optimism about blockchain technology was excessive. According to media reports, Singapore's state-owned investment firm Temasek suffered losses of 275 million USD in the FTX collapse.
The shift from embracing Web3.0 to relinquishing the role as a hub for cryptocurrency activities immediately drew industry attention. Subsequently, Web3.0 entrepreneurs began to flow from Singapore to Hong Kong.
Industry analysts have suggested that the money laundering case, the largest in Singapore's history, may have an impact on Singapore's efforts to establish itself as a Web3.0 center. In recent years, Singapore has attracted a large number of Chinese Web3.0 entrepreneurs with its free and stable policy environment. However, Singapore's policy environment seems to be becoming less favorable to entrepreneurs, and recent developments in Singapore have caused uncertainty among industry professionals.
On September 2, Tharman Shanmugaratnam, former Singapore Finance Minister and central bank chairman, was elected as the country's president.
According to media reports, Tharman had a laissez-faire stance on cryptocurrency in the early days. In 2018, he believed that cryptocurrency and related trading activities posed no threat to Singapore's financial system and did not require prohibition. In 2023, while reiterating this stance, he stated that cryptocurrency is "essentially speculative" and somewhat "crazy," and suggested that authorities provide "crystal clear" regulation on the risks associated with cryptocurrency.
Recently, the Monetary Authority of Singapore released its fourth enforcement report, highlighting the resolution of inappropriate behavior in the digital asset ecosystem as a key enforcement focus for 2023 and 2024, including enhancing the capability to address inappropriate behavior in the digital asset ecosystem, anti-money laundering, combating the financing of terrorism, and holding senior management accountable for mistakes in their financial institutions.
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