Money laundering to vaping: 5 key takeaways from Singapore Parliament
Issues raised range from enhancing anti-money laundering measures to plans to curb concerning trend of vaping among students
SINGAPORE — Singapore has taken a significant step in the fight against money laundering, with the government announcing plans to set up a new inter-ministerial committee in Parliament on Tuesday (3 October). The move, aimed at enhancing the nation's anti-money laundering framework, follows a recent billion-dollar money laundering case.
Here are the five key highlights from this week's Parliament sitting, which centred on addressing the issue of money laundering and other matters:
1. Formation of a new inter-ministerial committee
In her ministerial statement on Tuesday, Indranee Rajah, the Second Minister for Finance and National Development, unveiled the government's plan to form an inter-ministerial committee dedicated to reviewing and strengthening Singapore's anti-money laundering regime.
She will chair this committee, which will consist of political office holders from various governmental bodies, including the Monetary Authority of Singapore (MAS), as well as the ministries of Home Affairs, Law, Manpower, and Trade and Industry.
The committee will concentrate on four key areas:
Preventing corporate structures from being abused by money launderers;
Investigating ways for financial institutions to bolster their controls and improve collaboration, particularly to guard against and report suspicious transactions;
Examining the roles of other key players in the system - including corporate service providers, real estate agents, and precious stones and metals dealers - in contributing to the fight against money laundering risks;
Centralising and strengthening the capabilities of government agencies to enhance their ability to detect and respond to suspicious activities effectively.
The decision to establish this committee arose from a recent high-profile money laundering case involving arrests in August. The case, one of the largest in Singapore's history, saw law enforcement raiding multiple properties, including prestigious Good Class Bungalows and condominiums, leading to the seizure of assets now valued at over $2.8 billion.
2. Singapore's large-scale money laundering case
During her ministerial statement on Tuesday, Second Minister for Home Affairs, Josephine Teo, characterised this case as not only one of the most substantial anti-money laundering operations in Singapore but quite possibly on a global scale. She addressed roughly 60 parliamentary questions related to the case.
She revealed that authorities began noticing signs of trouble back in 2021, primarily in the use of potentially forged documents to justify the sources of funds in bank accounts. To avoid tipping off suspected money launderers, initial investigations involved only a small group of police officers.
After a comprehensive investigation in 2022, the police uncovered a complex network of individuals allegedly transferring money to Singapore from abroad, believed to be proceeds from criminal activities. Some of these individuals have familial connections.
Teo emphasised the seriousness of the matter, stating, “We will not hesitate to take strong enforcement action against people who would use Singapore as a haven to launder proceeds of crime. We will deal with them and their ill-gotten gains to the fullest extent of our laws.”
3. Singapore to review tax incentives for single family offices
Singapore is set to review its internal incentive administration process for single family offices (SFOs) applying for tax incentives in the country, said Minister of State for Trade and Industry, Alvin Tan.
This decision comes in response to potential links between accused individuals in Singapore's largest money-laundering investigation and SFOs that had been awarded tax incentives.
At the time of application for the tax incentives, there were no significant adverse findings or information related to the individuals and entities involved, according to Tan's ministerial statement.
To address this concern, MAS will conduct an internal review of its incentive administration process, and will “tighten them where necessary”.
4. Surge in vaping offences in schools
Second Minister for Education Maliki Osman disclosed that students' vaping offences have significantly increased.
In 2022, about 800 students from schools and Institutes of Higher Learning (IHLs) were caught vaping and subsequently referred to the Health Sciences Authority (HSA).
Before 2020, the number of students from schools and IHLs referred to HSA for vaping offences was fewer than 50.
Dr Maliki highlighted that vaping is likely an under-detected problem among students. The Ministry of Education (MOE), HSA, the Ministry of Health (MOH), and the Health Promotion Board (HPB) have expressed concern about vaping, not just among students but also in the wider community.
The education ministry is working with these government bodies to enhance detection, enforcement and educational efforts to combat this trend.
"Besides enforcement checks, our schools and IHLs have stepped up preventive education to convey the harmful effects of vaping on one's health," Dr Maliki said. "We seek the cooperation of families and the wider community to reinforce these messages strongly to stem this worrying trend."
Vaping is illegal in Singapore, with penalties including fines of up to $2,000. Importing, distributing, or selling vaping products is also against the law, with repeat offenders facing harsher penalties.
5. Use of Lee Kuan Yew's image on Yeo's commemorative drink packets 'respectful'
Parliament also addressed the use of Singapore's founding prime minister Lee Kuan Yew's image on a drink packet.
Minister of State for Culture, Community and Youth Alvin Tan said that Yeo's had consulted his ministry to ensure compliance with guidelines regarding the use of Lee's name and image.
The Ministry of Culture, Community and Youth (MCCY) guidelines stipulate that such use should not serve commercial or publicity purposes or suggest official endorsement.
In this case, MCCY assessed that the use of Lee's image was "respectful", aiming to highlight his contribution to Singapore's transformation into a green city.
Yeo's clarified that the commemorative packet drinks were distributed for free and not sold, Tan added.
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