Singapore charges 2 former Chinese bankers in US$2.3 billion money-laundering scandal

Wang Qiming and Liu Kai served some of the criminals involved in the city state’s biggest money-laundering case

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Former Citibank employee Wang Qiming leaves the State Courts in Singapore on Thursday. Photo: Bloomberg

Published: 11:33am, 15 Aug 2024Updated: 3:15pm, 15 Aug 2024

Singapore charged two former bank relationship managers who it accused of being involved in the country’s biggest money-laundering case, marking its first criminal actions against finance professionals in the S$3 billion (US$2.3 billion) scandal.

Wang Qiming, a 26-year-old Chinese national, was charged with 10 counts including forging documents for the purpose of cheating the bank, according to charge sheets read out in a local state court on Thursday. He used to work at Citibank Singapore Ltd., according to records with the Monetary Authority of Singapore.

Liu Kai, a 35-year-old who was formerly with Bank Julius Baer & Co., was accused of aiding one of the now-convicted money launderers in submitting a forged Chinese tax document to open a bank account in Switzerland.

The charges were read out to both men in Mandarin. Liu, who is also a Chinese citizen, holds Singapore permanent residency, according to his charge sheet. They declined to comment after the hearing.

The latest charges come a year after the money laundering scandal first unfolded with a series of arrests of wealthy foreigners who were living in the city state. Singapore authorities have seized cash, real estate, cryptocurrencies and other assets totalling about S$3 billion, and sent 10 people of Chinese origin to jail this year for laundering illicit funds from overseas gambling operations and other offences. More individuals involved in the scheme remain at large.

The case has also rocked Singapore’s banking sector. The convicted China-born individuals and their close associates, together with companies they controlled, held more than S$370 million in total at over a dozen financial institutions, court records compiled by Bloomberg show. Units of Citigroup Inc. and UBS Group AG-owned Credit Suisse were among the top banks holding the most in deposits.

The MAS has been inspecting multiple banks. The lenders with the most dealing with the criminals – through deposit accounts, loans and other financial services – could face fines and other punitive measures, people familiar with the matter said previously.