Detecting money laundering like finding needle in haystacks: Minister

Task challenging due to many transactions S’pore handles daily, says Josephine Teo

- David Sun

Detecting illicit activity is challenging because of the many transactions Singapore handles daily as a leading international financial centre, said Second Minister for Home Affairs Josephine Teo on Tuesday.

It is the responsibility of gatekeepers from financial institutions and corporate service providers to property agents and dealers of precious stones and metals - to do the necessary checks and flag risks, as many do, she added.

She was delivering a ministerial statement on Singapore's antimoney laundering regime in Parliament, addressing questions from MPs about a recent money laundering case involving over $2.8 billion in cash and assets.

It is Singapore's worst money laundering case so far.

Mrs Teo said: "As one of the leading international financial centres in the world, the daily transactions in Singapore are voluminous.

"The reality is that this sheer volume provides easy camouflage for illicit activities. Spotting a suspicious transaction among millions is challenging.

"It's not just one needle in a haystack, but one needle in several haystacks," she added.

So far, for that case, 10 people have been arrested and charged. Mrs Teo said there may be more arrests and seizing of assets. Several other people, including family members of those arrested, are assisting with investigations, and at least eight people are on the run.

Mrs Teo said Singapore has an anti-money laundering regime that involves collaboration across the different government ministries and agencies, and also with financial institutions and international agencies.