Business
The $2bn dirty-money case that rocked Singapore
A Singaporean court has begun handing out sentences in a sensational case, which saw 10 Chinese nationals charged for laundering $2.2bn (£1.8bn) earned from criminal activities abroad.
The scandal embroiled multiple banks, property agents, precious metal traders and a top golf club. It led to extensive raids in some of the most affluent neighbourhoods, where police seized billions in cash and assets. The lurid details have gripped Singaporeans – among the seized assets were 152 properties, 62 vehicles, shelves of luxury bags and watches, hundreds of pieces of jewellery and thousands of bottles of alcohol.
Earlier this month, Su Wenqiang and Su Haijin, became the first to be jailed in the case. Su Haijin, police said, jumped off the second-floor balcony of a house trying to flee arrest. Both men will serve a little over a year in prison, after which they will be deported and barred from returning to Singapore. Eight others are still awaiting the court’s decision.
Even as it draws to a close, the case – the biggest of its kind in Singapore – has raised inevitable questions. The money that paid for their plush lives in the country, prosecutors said, came from illegal sources overseas, such as scams and online gambling.
How did these men, some of whom had multiple passports from Cambodia, Vanuatu, Cyprus and Dominica, live and bank in Singapore for years without drawing scrutiny? It has sparked a review of policies, with banks tightening rules, especially around clients who hold multiple passports.
Most important, the case has spotlighted the country’s struggle with welcoming the super wealthy, without also becoming a destination for ill-gotten gains.
Luxury cars were among assets police seized in their raids (BBC)
Singapore, which is often referred to as the Switzerland of Asia, started wooing banks and wealth managers in the 1990s. Economic reforms in China and India had begun to pay off, and then in the 2000s, a newly-stable Indonesia saw wealth grow as well. Soon, Singapore became a haven for foreign businesses, with investor-friendly laws, tax exemptions and other incentives.
Today, the ultra-rich can fly into Singapore’s private jet terminal, live it up in luxurious quayside neighbourhoods, and speculate on the world’s first diamond trading exchange. Just outside the airport is a maximum security vault called Le-Freeport that provides tax-free storage for fine art, jewels, wine and other valuables. The $100m-facility is often dubbed Asia’s Fort Knox.
Singapore’s asset managers drew S$435bn from abroad in 2022, almost double the figure in 2017, according to the country’s market regulator. More than half of Asia’s family offices – firms which manage private wealth – are now in Singapore according to a report by consulting giant KPMG and family office consultancy Agreus.
They include those of Google co-founder Sergey Brin, British billionaire James Dyson and Chinese-Singaporean Shu Ping, boss of the world’s biggest chain of hotpot restaurants, Haidilao.
Authorities say some of the accused in the money laundering case may be linked to family offices that were given tax incentives.
“There is an inherent contradiction for a place like Singapore, which prides itself on clean and good governance but also wants to accommodate the management of massive wealth by offering advantages such as low taxes and banking secrecy,” says Chong Ja-Ian, a non-resident scholar at Carnegie China.
“The risk of also becoming a banker for individuals who earned their money through nefarious or illicit means grows.”
Singapore’s attraction for the ultra-rich comes with risks, analysts say (BBC)
For rich Chinese, Singapore is a top choice because of its reputed governance and stability, as well as its cultural links to China. And more Chinese money has been entering Singapore in recent years.
One of the 10 suspects in this case was wanted in China since 2017 for his alleged role in illegal gambling online. Prosecutors claimed that he settled in Singapore because he “wanted a safe place to hide from the Chinese authorities”.
This isn’t the first time Singapore-based banks have been implicated in a financial crime. They were found to have played a role in cross-border laundering in the 1MDB scandal, where billions were misappropriated from Malaysia’s state investment fund. Dan Tan, who was once described by Interpol as “the leader of the world’s most notorious match-fixing syndicate” also had strong business links to Singapore. He was arrested here in 2013.
The country has strict rules targeting white collar crimes and is an active member of the Financial Action Task Force, a global body which targets money laundering and financing for terror networks. Over the years, banks have invested heavily to strengthen compliance, to screen prospective customers and to urge regulators to report suspicious transactions. But none of this is foolproof.
For one, it is difficult for regulators to spot suspicious cases in a sea of high-value transactions. “It’s not just one needle in a haystack, but one needle in several haystacks,” Singapore’s second minister for home affairs, Josephine Teo, told parliament in October last year.
Singapore’s buoyant property market is a popular means to “clean” dirty money, some experts pointed out. And there are the casinos, nightclubs and luxury stores.
“Massive amounts of money pass through Singapore’s banking system every day. Criminals can exploit this feature and disguise their money laundering activities among legitimate ones,” accounting professor Kelvin Law from Singapore’s Nanyang Technological University told the BBC.
Singapore’s property market is one of the routes for dirty money, experts say (BBC)
Singapore also does not limit the amount of cash that can be carried in and out of the country, only requiring a declaration if the sum exceeds S$20,000. And that is an advantage, says Christopher Leahy, the founder of Singapore-based investigative research and risk advisory firm Blackpeak.
“If you want to move lots of money, you hide it in plain sight and Singapore is a great place for that. There is no point putting it in the Cayman Islands or the British Virgin Islands, where there is nothing to spend money on,” he said.
When asked for a response to analysts’ comments that Singapore’s advantages as a financial capital are also a draw for dirty money, authorities pointed the BBC to the law and home affairs minister interview in a local newspaper last year.
“We can’t close the window, because if we did that, then legitimate funds will also not be able to come. And legitimate business also can’t be done, or becomes very difficult to do. So we have to be sensible,” K Shanmugam said.
“When you are successful, you are a major financial centre, a lot of money comes in, some ‘flies’ will also come in,” he added, referring to an oft-repeated quote of the late Chinese leader, Deng Xiaoping.
Singapore has to decide how far it will go in accepting “money with varying shades of grey”, says Dr Chong of Carnegie China.
While increased regulation will help, he says transparency poses a bigger challenge: “Transparency goes against the very model of discretion that allows many wealth management hubs to thrive.”
Some analysts say this may well be the price Singapore is willing to pay to retain its position as a financial hub.
“The vast majority of the funds are legitimate, after all,” Mr Leahy says. “But there is an inevitable cost to being a major financial centre.”
(BBC)
The Bank recorded a Profit before Income Tax (PBT) of LKR 16.04 Bn for the period under review with a 59% growth over the previous year, while recording a Profit after Tax (PAT) of LKR 10.05 Bn for the year with a 61% growth over the previous year, demonstrating a robust performance despite challenging macro-economic conditions. The reported PAT of LKR 10 Bn is the highest performance in the Bank’s 36 year history.
Net Interest Income of the Bank was reported as LKR 37 Bn in 2024 compared to LKR 40 Bn reported in 2023 with a decline of 8% corresponding to reduction in Net Interest Margins during 2024, due to reduction in market interest rates throughout the year.
Net fee and commission income of the Bank reported a growth of 7% to LKR 8 Bn compared to LKR 7.4 Bn reported in the previous year. The growth in 2024 was mainly due to increase in income from Cards, Remittances and other services relating to Lending.
The Bank’s net gains from trading reported a gain of LKR 0.46 Bn, a decrease of 44% over the gain of LKR 0.82 Bn reported in previous year due to exchange / interest rate changes.
Net gains / (losses) from de-recognition of financial assets reported a loss of LKR 0.26 Bn in 2024, compared to the gain of LKR 0.15 Bn reported in the previous year. The loss due to the restructuring of SLISBs amounted to LKR 2.71 Bn and was recorded in Q4 2024.
Other Operating Income of the Bank was reported as LKR 1 Bn in 2024, a growth of 5% over the previous year. This increase is mainly from foreign exchange income, which represents both revaluation gain/ (loss) on the Bank’s net open position and realized exchange gain/ (loss) on foreign currency transactions.
The Bank’s Total Operating Income decreased by 11.6% to LKR 44 Bn in 2024 compared to LKR 49 Bn in the previous year mainly due to decrease in net interest income and the loss on restructuring of SLISBs.
The Bank made impairment provision to capture the changes in the macro economy, credit risk profile of customers and the credit quality of the Bank’s loan portfolio in order to ensure adequacy of provisions recognized in the financial statements. The impairment charge on Loans and Advances and other credit related commitments amounted to LKR 6.6 Bn (2023 – LKR 15.5 Bn). The impairment reversal due to the SLISBs exchange amounted to LKR 4.9 Bn (2023 – LKR 1.5 Bn charge).
(Seylan Bank)
By Ifham Nizam
For decades, many rural communities in Sri Lanka have struggled with an unreliable power supply, outdated infrastructure, and slow responses from authorities. However, a new initiative aims to change this narrative, bringing hope to thousands in the Galle District who have long been in the dark—both literally and figuratively.
Speaking to The Island Financial Review, Dr. Chathura Welivitiya, CEO of HELP-O, an expert in infrastructure development, emphasizes the importance of this project, stating, “Access to reliable electricity is not just about lighting homes; it is about empowering communities, enabling education, fostering business opportunities, and ensuring overall development.”
He said in many villages, the lack of a stable electricity supply has hindered progress. Residents report frequent power outages, damaged lines left unattended for weeks, and new connections taking months—if not years—to be processed. Such issues have not only inconvenienced households but have also impacted local businesses, schools, and healthcare facilities.
According to a Weligama Municipal Council official: “Our children cannot study at night due to power failures. Businesses suffer because they cannot store perishable goods properly. We have raised complaints multiple times, but the response has been slow.”
Recognizing these challenges, a new project has been launched to address the inefficiencies in power distribution. The initiative includes:
Expansion of the Electrification Network: Efforts to extend power lines to remote areas that still rely on kerosene lamps or battery-operated sources.
Upgrading Infrastructure: Replacement of outdated transformers, damaged poles and weak wiring systems to ensure a stable and safe electricity supply.
Community Engagement: A digital reporting system that allows residents to highlight issues in real time, ensuring faster response and accountability from relevant authorities.
Sustainability Measures: Exploration of renewable energy options, such as solar power, to complement the grid and provide backup solutions for power outages.
Dr. Chathura explains, “This project is not just about fixing wires and poles; it is about creating a sustainable and efficient system that meets the growing energy demands of rural areas. Transparency and community participation are key to its success.”
The Southern Province Governor Bandula Haischandra has voiced strong support for the initiative, recognizing its potential to transform rural communities.
“Ensuring a stable electricity supply is a fundamental responsibility of the government, the Governor told The Island Financial Review. “For too long, these communities have been neglected. We are committed to fast-tracking infrastructure improvements and working closely with relevant authorities to resolve longstanding issues.”
The Governor further emphasized the role of accountability and efficiency in the implementation process. “We cannot afford delays and inefficiencies. With the use of modern technology, we are ensuring that complaints are addressed swiftly and that no village is left behind in development.”
Business
Elpitiya Plantations clinches fourth consecutive victory at Inter Plantation Cricket Tournament
Elpitiya Plantations emerged victorious at the 22nd Inter Plantation Cricket Tournament, organised by the Dimbula Athletic and Cricket Club, held on the 21st and 22nd of February 2025 at the Radella Cricket Ground.
The tournament saw participation from 11 plantation companies, showcasing exceptional talent and sportsmanship. Elpitiya Plantations, led by their dynamic captain Wajira Mannapperuma, demonstrated outstanding performance throughout the tournament.
The winning team from Elpitiya Plantations consisted of Wajira Mannapperuma, Asela Udumulla, Dilukshan Neshan, Lakshan Thenabadu, Kavinda Sulochana, Yasitha Koswaththa, Anushka Baddevithana, Kanishka Ranchagoda, Pramoth Bandara, and Sajith Edirisinghe.
In the semi-final match, Elpitiya faced Horana Plantations PLC and secured a decisive victory by bowling out the Horana team for just 20 runs within 4 overs, paving their way to the finals. The final match was a thrilling encounter against Talawakelle Tea Estates PLC, where Elpitiya’s formidable bowling lineup made it challenging for Talawakelle to score. Within the first four overs, Talawakelle’s top batsmen were back in the pavilion, allowing Elpitiya to clinch the championship title with ease.
This victory marks Elpitiya Plantations’ fifth overall win in the history of the tournament and their fourth consecutive triumph, having previously won in 2022, 2023, and 2024. The team’s consistent performance and dedication have solidified their reputation as a formidable force in plantation cricket.
The management of Elpitiya Plantations extends heartfelt congratulations to the team and expresses gratitude to all the supporters and organisers who made this event a grand success.
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