What happens to assets seized in the billion-dollar money-laundering raid?

ELEVEN more properties were issued with prohibition-of-disposal orders last Friday (Aug 18), adding to the haul in the police’s recent anti-money laundering bust. This brings the total value of properties seized in the raid to S$831 million.

Including other goods, such as luxury watches and bags, over S$1 billion worth of assets has been amassed.

On Wednesday, public prosecutors said intensive investigations are still at a preliminary stage. They have requested that the 10 accused be denied bail given the risks of collusion and evidence contamination.

The Business Times spoke to experts to find out what will happen to the seized assets.

Who has custody of the assets while investigations and criminal proceedings take place?

The seized assets will be under the custody of the police throughout the entire investigation, and kept as evidence for the criminal proceedings.

As the investigation is still ongoing, more evidence and seizures may be expected.

Suang Wijaya, partner at Singapore law firm Eugene Thuraisingam LLP, noted that seizures are subject to time limits. “The authorities will, at regular timeframes, apply to the Magistrate for regular extensions of seizure,” he added.

There are different forms of seizure for different types of assets.

To freeze money in bank accounts, the police issue an order to the relevant financial institutions or holders to prohibit dealings with the money.

A prohibition-of-disposal order is issued for properties.

Eugene Thuraisingam LLP’s disputes lawyer Sophia Ng added that when the police issue such an order, the costs of managing the asset continue to be borne by the holder of the asset.

In this case, the fees of managing the properties remain with the property holders.

The police also lodge a caveat against the property, so that they will be notified of any attempt to deal in it.

What would happen to the seized assets after trials conclude? 

Once the criminal proceedings are conducted and all appeals are exhausted, the seized assets will no longer be required for any other court proceedings or investigations.

They will then be forfeited to the state, returned to specific victims if they can be traced, or returned to the people from whom they were seized.

If the accused person is convicted, and the assets are proven to be benefits of criminal conduct, the authorities may apply to the High Court for such assets to be confiscated. This is different from being seized, Wijaya added.

Following confiscation, the High Court has the power to order the property to be realised. “One mode of realisation of property may be for the property to be auctioned for sale and the proceeds of sale forfeited to the state,” he noted.

The court may return seized properties or sale proceeds to victims or true owners if they can be identified. Proceeds could also be returned to overseas authorities.

“If overseas authorities had made formal requests for Singapore authorities to assist them in confiscating proceeds of crime committed overseas, the court may make orders under the Mutual Assistance in Criminal Matters Act for the seizure and overseas repatriation of sale proceeds of property.”

What has been seized so far?

The luxury watches and Bearbricks have made headlines, but the bulk of the assets seized are physical real estate. The 105 properties issued prohibition-of-disposal orders account for about 80 per cent of the total assets.

These include seven detached bungalows in Sentosa Cove, 19 commercial or industrial spaces, and 79 condominium units, 19 of which are still under construction.

Another 50 vehicles were also issued prohibition-of-disposal orders.

Over S$110 million under more than 35 related bank accounts in total were frozen by the police.

All these, in addition to the seized cash, luxury goods, electronic devices, jewellery, documents on virtual assets, liquor and wine, as well as the Bearbricks ornaments, make up the billion-dollar haul.