Alleged Roles of Singapore Banks in "The Russian Laundromat" Money-laundering Scheme
Prime Minister's OfficeSpeakers
Summary
This question concerns investigations into the alleged involvement of Singapore banks in "The Russian Laundromat" money-laundering scheme, as raised by Ms Sylvia Lim. Deputy Prime Minister and Minister in charge of the Monetary Authority of Singapore Tharman Shanmugaratnam stated that while US$77 million allegedly flowed through local accounts, the Monetary Authority of Singapore’s ongoing probe has not yet revealed major anti-money laundering control lapses. He emphasized that the banks involved took appropriate risk-mitigating measures and that the alleged sum represents a minimal fraction of the US$357 billion in total financial flows seen during that period. The Minister reaffirmed Singapore’s robust anti-money laundering and countering the financing of terrorism regime, which requires financial institutions to perform rigorous customer due diligence and monitor for suspicious transactions. He also highlighted the necessity of international cooperation with foreign counterparts to effectively identify and disrupt increasingly complex cross-border illicit financial activities.
Transcript
3 Ms Sylvia Lim asked the Prime Minister whether there is any ongoing investigation by Singapore authorities into the alleged roles of several Singapore banks in a money-laundering scheme dubbed by the Organised Crime and Corruption Reporting Project in 2014 as "The Russian Laundromat".
Mr Tharman Shanmugaratnam (for the Prime Minister): Ms Sylvia Lim asked about an article published by the Organised Crime and Corruption Reporting Project (OCCRP), an international non-governmental organisation (NGO) consortium, on what it dubbed "the Russian Laundromat". The article charged that US$20.8 billion from 19 Russian banks was laundered between 2011 and 2014, using banks in 96 countries.
The article stated that US$77 million, or 0.4%, of the allegedly laundered monies had flowed into the accounts held in banks in Singapore. It also stated that US$927 million had flowed into banks in Hong Kong, US$916 million into mainland China, and US$608 million into Switzerland.
Singapore is a global business and financial centre that sees substantial financial flows daily into and out of the country. To put the total US$77 million that was allegedly laundered through Singapore into perspective, the banking system saw US$357 billion of financial flows in total over the same period. The Monetary Authority of Singapore (MAS) nevertheless takes a serious view of any alleged money laundering through Singapore, small or large.
MAS’ probe into the specific OCCRP allegations has not been completed. It has thus far not surfaced evidence of major lapses in anti-money laundering (AML) controls at banks in Singapore. Where the banks detected suspicious activities relating to the flows in question, they had taken appropriate risk-mitigating measures.
To reiterate, we are constantly vigilant against the threat of money laundering. That is why we have put in place a robust Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) regime. Financial institutions are required to conduct, amongst other things, adequate customer due diligence. This includes rejecting suspicious customers, closely monitoring fund flows, and reporting any suspicious transactions.
As money laundering schemes are increasingly complex and cross-border in nature, international cooperation is critical in identifying, disrupting and deterring illicit activities. MAS and Singapore’s law enforcement agencies have been exchanging information and working with their foreign counterparts to investigate suspicious schemes.