Singapore authorities freeze $1.8 billion linked to cryptocurrency money laundering

Singapore police confiscated 2.4 billion SGD (~$1.8 billion) in the country’s largest case of laundering proceeds derived from digital assets, according to Bloomberg.

In addition, authorities sealed bank accounts worth more than 1.13 billion SGD (~$825 million) and crypto at $27 million. As part of the investigation, authorities also sealed more than 110 properties and 62 vehicles valued at about 1.24 billion SGD (~$906 million).

In mid-August, the police arrested ten Chinese nationals on suspicion of involvement in money laundering and document forgery. According to the statement, they allegedly laundered proceeds from overseas criminal activity, including online fraud and gambling.

They were denied bail, citing flight risk due to the presence of forged passports.

Against this backdrop, Singapore banks tightened scrutiny of Chinese clients. Some lenders are scrutinising new account openings and transactions.

According to sources familiar with the matter, at least one international bank has already ceased serving several citizens from Cambodia, Cyprus, Turkey and Vanuatu. Other financial institutions in the city-state began evaluating whether to accept new funds from clients with similar characteristics on a case-by-case basis.

The criminal scandal has sparked widespread public concern, as it touches at least ten local banks. This raises questions about the effectiveness of local anti-money-laundering efforts.

A representative of the DBS Group noted that the local regulatory regime obliges all banks to monitor money-laundering risks but does not compel them to refuse services.

In Parliament, more than 30 questions on the matter were raised: from the stringency of vetting processes to reports of suspicious transactions and the impact on the country’s reputation. Home Affairs Minister Sun Xueling said the ministry would provide answers at a briefing in early October.

Earlier in September in Thailand, arrested the accused in a crypto scam worth $27 million. The victims of a platform called bchgloballtd.com numbered at least 3,280 people.