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Singapore may put luxury assets including cars, watches and handbags under anti-money laundering controls, it is considering as the Asian financial hub becomes embroiled in a S$2.8 billion ($2 billion) money laundering scandal one of a series of restrictive measures.
The Singapore government said in response to questions about the inquiry in parliament on Tuesday that it would look into extending anti-money laundering requirements, such as strict “know your customer” due diligence, to high-value assets such as cars, handbags and alcohol. Unlike gemstones or metals, such items are currently not regulated.
But the government has warned against a “knee-jerk” reaction to what is now one of the world’s largest money laundering investigations, saying it could make it harder to do business in the city-state.
The government’s proposals to expand anti-money laundering regulations come as the total value of assets seized or frozen in investigations has almost tripled to S$2.8 billion.
The scandal came to light in August when authorities arrested 10 people in a raid across the city-state, seizing luxury cars, designer watches, handbags, expensive wine as well as cash and gold bars.
Foreign and local banks are involved in the case, as well as real estate agents, precious metals dealers and elite golf clubs.
Singapore faces public pressure to crack down on illegal activities and questions about how the group – believed to launder proceeds from overseas criminal activity and counterfeiting – was able to operate despite Singapore’s tight regulations for so long. Financial regulations.
The suspects, who all hold Chinese passports and are linked to illegal gambling activities originating from the mainland, are said to have been engaged in gambling activities in Singapore since 2017. The case first attracted government scrutiny in 2021. According to the Singapore Police Force, the man is wanted.
The Singapore government said on Tuesday it would set up an inter-ministerial committee led by Second Finance Minister Indranee Rajah to consider further steps to strengthen Singapore’s anti-money laundering regime.
In addition to the possibility of extending due diligence controls to luxury goods purchases, the government said it would look into tightening immigration verification procedures. Since the outbreak of the coronavirus pandemic, Singapore has absorbed rapid inflows of wealth and individuals, particularly from China.
Second Minister for Home Affairs Josephine Chang said any new measures would need to be adjusted carefully. Singapore says its antitrust and money laundering requirements are in line with international standards.
“We need rules… but we need to be careful about knee-jerk reactions, which may make our business environment unfriendly,” Teo said.
The case has already had an impact on the center’s financial community. Wealth managers and other advisers said the waiting period for clients holding foreign passports, including Chinese, to open private bank accounts has lengthened to four months from less than a month previously, while some existing accounts have been blocked by authorities tightening policies. is closed. diligence.
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