Fund management company probed for suspected money laundering; more than S$160m in assets seized
Two directors of Capital Asia Investments were arrested.
The logo of the Monetary Authority of Singapore (MAS) is pictured at its building in Singapore. (File photo: Reuters/Edgar Su)
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SINGAPORE: A licensed fund management company is under investigation for suspected money laundering, with more than S$160 million (US$124 million) in assets from the company’s bank and securities accounts seized.
An enforcement operation by the Singapore Police Force (SPF) and the Monetary Authority of Singapore (MAS) was conducted on Mar 5 against Capital Asia Investments, said the authorities in a joint statement on Monday (Mar 9).
Two of the company's directors were arrested.
MAS said it had been reviewing the company and its activities after receiving information about possible unlawful conduct. A supervisory review found “serious control failings” in the firm’s compliance with anti-money laundering requirements.
Separately, SPF said it had received financial intelligence from the Suspicious Transaction Reporting Office regarding the alleged involvement of Capital Asia Investments and related entities in a transnational money laundering network.
"Following this, the police commenced investigations and engaged foreign counterparts for information and assistance as the proceeds of crime were allegedly derived from overseas organised crime activities, including scams", SPF added.
Investigations are ongoing.
The offence of money laundering is punishable with up to 10 years’ imprisonment, a fine of up to S$500,000, or both.
Offences under the Financial Services and Markets Act 2022 carry a fine of up to S$1 million, with further fines possible for continuing offences.
"Singapore takes a serious view of individuals and entities which seek to exploit Singapore’s financial system for money laundering and other criminal activities," said the authorities.
"The police will take strong enforcement action and the offenders will be dealt with firmly."
