March 28th, 2011

http://www.temasekreview.com/2011/03/28/singapores-prominence-as-money-laundering-hub-grows/

In January 2011, a Singaporean Chinese businessman was fined $6,000 for helping the son of former Bangladeshi Prime Minister to launder $3 million. Despite PAP’s insistence that it is tough on money laundering, this was not the first case nor is it the last. Now Indian politicians have been caught with depositing black money in UBS banks in Singapore.

What is revolting is that UBS is not giving due cooperation with Indian authorities. It is not clear how much cooperation MAS has provided. This case has captured the headlines of Indian media and has dealt a serious blow to Singapore’s reputation. Till today the local media has been keeping silent on this case and refused to cover it. Commercial Affairs Department (CAD) should have sprung into action on UBS but that seems to be not happening. MAS should have also started an investigation but one can only see MAS’s inaction.

These consequently lend support to growing criticisms that Singapore has become an international money laundering hub. No matter how much Home Affairs Minister Shanmugam may deny this, the lack of action by

authorities seem to speak otherwise. So far they have done nothing substantial but cosmetic action such as passing laws etc.

In fact the seemingly coordinated inaction by the media, MAS, CAD, Ministry of home affairs etc only seem to suggest that nobody within the authorities or state controlled media want to pay any attention to money laundering cases that have blow out of proportion.

Recent visit by Zimbawean dictator, Mugabe, have started tongues wagging that he parks money that he loots from his country’s coffers within the banks of Singapore. That is not far fetched given that dictators do favor Singapore as a destination for their criminal money. A few years ago there was a court case taken against DBS to release money that Marcos had deposited in Singapore in 1980s. Interestingly the court refused to order DBS to return the money and instead found DBS to be perfectly innocent of accepting money that was stolen from Philippines cofffers and illegally deposited into DBS.

If Singapore is serious about wiping out money laundering in the country, it needs to weed out banking operations that openly serve as financial intermediaries for criminal money. In the current case involving Indian politicians, MAS must immediately initiate a full investigation on UBS. CAD should also conduct a full investigation. If UBS refuse to reveal full details surrounding the two corrupt Indian politicians, then the banking license of UBS must be suspended.