Singapore’s financial crime defenses have come under scrutiny following a massive money-laundering probe that revealed gaps in its safeguards. The investigation, which began in mid-August 2023, led to the arrest of 10 foreigners, mainly from China, accused of laundering proceeds from organized crime, including illegal gambling and scams. The probe exposed the acquisition of multimillion-dollar properties, luxury cars like Bentleys, and cryptocurrency by the alleged syndicate.

The authorities have seized or frozen over S$1 billion in cash, properties, and assets, including 105 properties in prestigious areas, such as Sentosa Cove, and high-end items like Patek Philippe watches and Rolls-Royce cars. The suspects allegedly laundered funds through some of Singapore’s largest financial institutions, including UOB, OCBC, and DBS.

While Singapore has a reputation for strict financial regulations, the scale of this case has raised questions about how such vast sums of illicit money could circulate within the city-state for so long. Deputy Prime Minister Heng Swee Keat and other officials have highlighted the arrests as proof of Singapore’s zero tolerance for money laundering. However, experts, including law lecturer Anton Moiseienko, believe the case illustrates a significant lapse in the country’s system.

The Monetary Authority of Singapore (MAS) is now conducting “supervisory engagements” to ensure that institutions take appropriate measures to mitigate the risks of money laundering. Financial institutions like DBS, UOB, and Citi have pledged to enhance their efforts to prevent such activities.

This case follows a series of financial scandals in Singapore in recent years, including those involving Malaysia’s 1MDB fund and German firm Wirecard AG. In response to these threats, the government passed new legislation in 2023 requiring banks to share information about risky clients and mandated due diligence checks by property developers.

The luxurious lifestyles and brazen opulence of the accused, who spent millions on high-end properties and exclusive golf club memberships, have sparked concerns about social resentment in a country known for its social harmony. As the investigation continues, Singapore will face an anti-money laundering review by the Financial Action Task Force in 2025.