HSBC, Morgan Stanley among creditors as money-laundering probe expands to associates

HSBC and Morgan Stanley are among the potential creditors of companies whose shareholders and directors have been linked to the recent money-laundering bust.

More connections are surfacing as the authorities expand investigations into the associates of the 10 charged in an anti-money-laundering crackdown that has grown in value to S$1.8 billion.

Business filings of Singapore-incorporated companies linked to 24 persons, identified by the authorities as associates of the charged, show at least six banks as creditors to eight entities.

The banks are Credit Suisse, HSBC, Morgan Stanley, DBS, UOB and OCBC’s Bank of Singapore (BOS).

The 24 associates were previously identified by the Ministry of Law in a list sent to regulated dealers of precious stones and metals. The Aug 27 notification directed dealers to report suspicious transactions to the police.

The six banks named in business filings reviewed by The Business Times had various all-monies charges over the companies. An all-monies charge is generally a form of security taken to secure repayment of a loan.

Credit Suisse had all-monies charges over the assets of five investment firms, the most out of the six banks. The charges were registered between August 2021 and March 2023.

Five foreign nationals identified as associates of the suspects are directors and shareholders of the companies – Chen Zhiqiang, Wang Ruiyan, Wang Qiujiao, Su Caihuang and Chen Lingling.

Credit Suisse also had a charge over Ming Huang Investments, of which Wang Ruiyan is a director and shareholder, as at Sep 23, 2022.

A Chinese individual named Wang Shuiming is also a shareholder of the company, though it is unclear whether he is the same individual who was one of the 10 nabbed last month in islandwide raids.

The individual listed in Ming Huang Investments’ business filing has a different identification number and a residential address in Kowloon, Hong Kong, though the two share the same name.

Credit Suisse declined to comment.

Singapore’s biggest bank DBS registered three charges on Nov 12, 2021, and May 9, 2022, on Xin Xin Consultancy. UOB has another Nov 30, 2021, all-monies charge with the company. Chen Lingling is a shareholder.

A DBS spokesperson said banks have supported the authorities’ efforts. DBS does not comment on specific names, and it will continue its “work to make Singapore a place where criminals cannot find harbour”, the spokesperson said.

UOB declined to comment.

At least nine financial institutions have been named in court proceedings in the money laundering case. Some of the suspected individuals are believed to be linked to a major gambling syndicate and other unlicensed activities in China, according to court documents.

The banks were said to have received forged documents from those charged and/or extended services to them.

The Monetary Authority of Singapore (MAS) has directed banks to scrutinise dealings with a list of individuals comprising the 10 suspects and their associates.

More financial institutions could become embroiled in the saga as the money laundering operation is dismantled.

HSBC is a creditor to two companies linked to the associates of the suspects, according to BT’s checks.

The bank has an all-monies charge registered on Jun 22, 2023, for King Shine Capital, of which Wang Qiujiao is a director and shareholder.

HSBC has another charge with Lihong Investment – a company with Su Lihong as a director – as at Feb 17, 2022.

An all-monies charge was registered for Forthmost Assets by two units of Morgan Stanley on May 18, 2023. Chen Zhiqiang is a director and shareholder.

Of the local banks, BOS and UOB have charges with Li Jiang, where Wang Liyun is a director and shareholder, registered on Sep 10, 2021, and Feb 3, 2021, respectively.

HSBC, Morgan Stanley and OCBC, which owns BOS as its private banking arm, declined to comment.

As authorities work to unravel the money launderers’ web, the extent of their networks – spanning banking, real estate, luxury goods and automobiles – is raising questions around illicit money flows in Singapore.

MAS has said it will not tolerate the abuse of the Singapore financial system for illicit activities. Minister for Law and Home Affairs K Shanmugam has said the investigations were triggered by suspicious transactions reports by financial institutions here, reflecting control protocols already in place.

Singapore police have seized or frozen millions of dollars from accounts held with Julius Baer, Credit Suisse, RHB Bank, UOB and UOB Kay Hian.

Suspects in the case have also been accused of trying to cheat Citigroup, CIMB Bank, OCBC and Standard Chartered with forged documents.

Outside of court proceedings, Deutsche Bank, BOS and DBS have been found to be creditors of firms linked to the suspects, based on business regulatory filings.