Singapore’s biggest money laundering probe reveals web of corporate links, some more than 6 years old

SUSPECTS in Singapore’s S$2.8 billion money laundering case have been incorporating companies in the country since January 2017, an analysis of corporate filings by The Business Times (BT) found.

The individuals have ties to at least 35 entities in Singapore and Cambodia through various shareholdings and directorships. Six of those entities have been struck off.

Of the 35 companies linked to the 10 accused, six are connected to more than one suspect, highlighting the associations between these individuals through their corporate ties.

The 10 individuals’ alleged involvement in Singapore’s worst money laundering scandal has prompted authorities to look into the business activities of companies linked to them, although no criminal links have been established.

BT analysed data from the Accounting and Corporate Regulatory Authority (Acra) and analytics platform Handshakes to unpack the overlapping links between suspects and companies.

The earliest record of a company being linked to more than one suspect was Apr 22, 2019. Meining (Asia) International Electronic Commerce, registered as a holding company and a retailer of clothing for adults, has both Su Haijin and Su Baolin as shareholders.

The four other shareholders of Meining (Asia) are also foreigners. One of them is listed as a Cypriot national, while three are Chinese with registered addresses in Fujian province.

Companies cluster in four main industries

Over a third of the companies linked to the suspects were registered as information technology (IT) companies. Of the 35 in total, 12 are IT businesses, six are holding companies, five are in wholesale and retail trade, and four are management consultancies.

The remaining eight span industries such as food and beverage, construction and e-commerce.

One company, DA Luxury, was owned by Vanuatu national Su Jianfeng at incorporation. He ceased to be a shareholder nine days later.

Checks by BT showed DA Luxury listed designer watches, jewellery and handbags for sale online. The range shown on its website and social media pages included diamond-encrusted necklaces, sapphire earrings and high-end timepieces from Rolex and Patek Philippe.

Investigators are alleging some of the entities linked to the suspects are shell companies or companies set up to manage the suspects’ investments.

More information emerged at an Oct 18 bail hearing for Su Jianfeng, who faces four money laundering charges. He claimed his status as chief executive of a computer support company proved his roots in Singapore.

Investigators, however, believe the company, An Xing Technology, is likely a shell company. It had only one corporate bank account that was mostly dormant.

An Xing Technology is registered with Acra as an IT consultancy. It shares the same registered address at Telok Ayer as DA Luxury.

“Further, and critically, the accused himself said in his statements that despite him being CEO, he is ‘unclear’ of the company’s business and does not even know the location of its office,” prosecutors said in their submissions to deny him bail.

Another company, Golden Eagle Family Office, was said to have been set up for Chinese national Zhang Ruijin to obtain an employment pass and manage his wealth. Zhang made this claim in his statement, an investigator’s affidavit said.

Lin Baoying, the other beneficial owner of Golden Eagle Family Office, also holds an employment pass through the company.

Lin’s other registered businesses in Singapore include Ban Tian Yao Catering Management and Eagle77.

These companies do not have substantive operations, an investigator’s affidavit indicated. Eagle77 appears to have been set up for Lin’s property purchases.

One or more of the suspects may have links to single family offices that received tax incentives, it was revealed in Parliament on Oct 3.

The Monetary Authority of Singapore is reviewing its internal processes for such incentives.

Service providers reveal more links

In addition to their direct links to companies, the suspects are also connected through second-degree connections – the corporate secretaries and directors of the companies they were involved in.

One of the corporate secretaries is linked to nine companies, which are in turn connected to three of the suspects.

An Acra spokesperson said the authority has reached out to a number of corporate service providers in an ongoing probe relating to the money laundering case.

Foreigners are required to engage a registered filing agent to incorporate a company, and must appoint at least one director living in Singapore.

The city-state has restrictions on who is allowed to incorporate a company. Filing agents are obligated to conduct due diligence on customers and monitor for potential money laundering activities.

Of the 28 people who have served as corporate secretaries to the suspects’ companies, four have also been directors.

One of them held 898 active company secretary and director roles in Singapore, as at Oct 9. Another held 164 of such roles, BT found.

Such practices have raised questions about the ease of exploiting Singapore’s rules surrounding incorporation, said Chua Choon Hong, head of Moody’s Analytics financial crime practice group for Asia-Pacific and the Middle East.

Chua said: “The lack of oversight on corporate secretaries and business services companies creates what can be seen as a loophole in the system.”

Singapore is planning to tighten oversight of corporate secretaries and business services companies in 2024.

These moves could include enhancing the penalties on errant corporate service providers, and putting restrictions on directorships, such as limiting the number of nominee directorships one can hold.

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