Singapore Charges Ex-Bank Managers in $3bn Money-Laundering Scandal

Former Bank Managers Face Charges

On 15 August 2023, Singaporean authorities charged Wang Qiming, a former manager at Citibank, and Liu Kai, who previously worked at Julius Baer, for their alleged roles in a massive money-laundering operation.

The case, which has rocked Singapore’s financial sector, marks the first time financial professionals have been implicated in such a scandal in the city-state.

Authorities allege that the illicit funds, including proceeds from illegal online gambling, were funneled through multiple banks across Singapore.

Alongside the two bankers, a driver employed by businessman Su Binghai, a key figure in the case, was also charged. Su himself has fled Singapore and remains at large.

Ten Convicted, More Suspects Sought

So far, ten individuals have been convicted in connection with the case. All of those convicted have been identified as Chinese nationals from Fujian province, with sentences ranging from 13 to 17 months in prison. The case has seen S$3 billion laundered through 16 Singaporean banks, with S$1 billion in cash and assets seized by authorities. This includes high-value luxury items such as real estate, vehicles, and jewellery.

Despite the convictions, Singapore’s authorities continue to pursue at least 17 suspects who remain on the run. The scale of the case and the involvement of numerous financial institutions have raised concerns about the robustness of Singapore’s anti-money laundering (AML) measures.

Impact on Singapore’s Financial Reputation

The scandal has dealt a blow to Singapore’s reputation as a clean and well-regulated financial hub.

Long known for its strict financial regulations and strong AML framework, the city-state has been a leader in the fight against financial crime.

Singapore is an active member of the Financial Action Task Force (FATF) and co-chairs its Policy Development Group, which sets AML standards for global markets.

Additionally, Singapore works closely with international bodies such as Interpol and the Egmont Group to combat money laundering.

However, a 2024 risk assessment by Singapore’s finance ministry indicated that the country remains at high risk for money laundering, particularly foreign fraud facilitated by advances in digitalisation.

The report highlighted the increasing threat posed by foreign organised crime, with illegal online gambling flagged as a significant source of illicit funds.

Tightening Financial and Casino Regulations

In response to the scandal, Singapore has recently introduced stricter financial controls aimed at curbing money laundering.

The Anti-Money Laundering and Other Matters Bill, enacted on 6 August 2024, includes amendments to the Casino Control Act.

The new regulations allow gaming operators to share customer data more easily to detect suspicious transactions.

Changes to customer due diligence (CDD) checks have also been implemented. Previously, checks were triggered when customers made single cash transactions exceeding S$10,000 or deposited S$5,000 into a casino account.

The thresholds have now been reduced to S$4,000 for both cash transactions and deposits, further tightening the monitoring of financial activity within Singapore’s two major casino resorts, Marina Bay Sands and Resorts World Sentosa.

Singapore’s Ongoing Challenge with Money Laundering

Despite the government’s efforts to enhance financial regulations, Singapore continues to attract criminal elements due to its standing as a reputable global financial centre.

The Singapore Monetary Authority’s June report warned of the country’s exposure to transnational money-laundering threats, noting that it remains a target for criminal syndicates looking to launder illicit funds through its banks.

As the investigation into the 2023 money-laundering scandal continues, Singapore’s authorities are focused on strengthening regulatory frameworks to prevent future financial crimes and preserve the country’s reputation as a global financial hub.