Bankers Charged in Singapore’s Largest Laundering Scandal

Singapore’s legal system took a decisive step by formally charging two former bank relationship managers, marking a significant development in the country’s largest-ever money-laundering scandal. This action represents the first time Singapore has criminally charged finance professionals in connection with the S$3 billion (US$2.3 billion) case.

Charges and allegations unveiled:

The charges, which were articulated in a local state court, reveal the intricate involvement of the accused in fraudulent activities aimed at facilitating money laundering. Wang Qiming, a 26-year-old former employee of Citibank Singapore Ltd. and a Chinese national, faces 10 counts, including forging documents to deceive the bank. His professional details are listed in records held by the Monetary Authority of Singapore.

As the South China Morning Post reports, Liu Kai, 35, previously associated with Bank Julius Baer & Co., is accused of assisting a convicted money launderer in using a forged Chinese tax document to establish a bank account in Switzerland. Both men, fluent in Mandarin, read their charges in their native language. Liu, also a Chinese citizen, holds permanent residency in Singapore. Post-hearing, the accused opted not to comment.

This scandal has sent shockwaves through Singapore’s financial sector. It emerged a year ago with the arrest of several wealthy foreigners residing in the city-state. Singaporean authorities have since seized a staggering S$3 billion in cash, real estate, cryptocurrencies, and other assets. This year alone, 10 individuals of Chinese descent were incarcerated for channeling illicit funds from overseas gambling operations among other crimes, with additional suspects still at large.

Notably, these convicted individuals and their associates, along with their controlled entities, had amassed over S$370 million across more than a dozen financial institutions. Prominent banks such as units of Citigroup Inc. and Credit Suisse, now owned by UBS Group AG, were identified as holding significant deposits from these illicit activities.

Detailed charges and financial crimes:

The charges against Wang Qiming include laundering close to S$500,000 ($379,708) and creating fraudulent loan documents. Meanwhile, Liu Kai is specifically charged with employing a counterfeit tax document to facilitate the opening of a bank account in Switzerland for one of the money launderers. Statements from their legal representatives were not immediately available.

According to Reuters, Both Julius Baer and Citibank have responded to the developments. Julius Baer affirmed its cooperation with authorities, expressing its commitment to maintaining the integrity of Singapore’s financial system. Citibank, on the other hand, clarified that Wang Qiming had not been employed with them since April 2022, and chose not to comment further due to the ongoing legal proceedings.

This case has led to broader implications for legal and financial governance in Singapore. Following the arrests last August, which included simultaneous raids capturing 10 foreigners with multiple passports, the offenders were sentenced to jail terms ranging from 13 to 17 months. After serving their sentences, they were deported and prohibited from re-entering Singapore.

In response to this landmark case, Singaporean authorities have initiated reforms to streamline the prosecution of money laundering offenses. An inter-ministerial panel has also been established to review anti-money laundering procedures and inspect financial institutions suspected of involvement in such crimes.