New Reporter
04-09-23, 14:49
Nationals from ‘higher-risk’ countries bought at least 230 Singapore properties over past 7 years
Deals done by buyers with passports from Cyprus, Dominica, Saint Kitts and Nevis, Turkey, Vanuatu and Cambodia appear to have peaked in 2018
Aug 27, 2023
SINCE 2016, there have been at least 232 residential property deals done by holders of passports from the same countries as those arrested in the billion-dollar money-laundering bust this month.
The tally, based on an analysis of official data, is substantially higher than the 105 properties – estimated to be worth S$831 million – seized by Singapore police during the anti-money laundering raid on Aug 15.
The Business Times (BT) analysed property transaction data from the Urban Redevelopment Authority (URA) based on purchasers’ nationalities. The data stretched from 1995, when records were first available, to August 2023.
In 2016, there was a discernible spike in residential property deals done by buyers with Cambodia, Cyprus, Dominica, Saint Kitts and Nevis, Turkey and Vanuatu nationalities. The 10 foreign nationals arrested on Aug 15 are said to have originated from China, but all held passports from those countries.
Of these countries, most are on a list of 14 nations the OECD has identified as having citizenship-by-investment schemes that “potentially pose a high risk to the integrity” of a global treaty seeking to address money laundering.
Cambodia was added to the Financial Action Task Force (FATF) grey list in 2019, but was removed this year after efforts by authorities to crack down on financial crime.
Countries on the FATF grey list are subject to increased monitoring, while those on the black list are called upon to implement measures to protect the international financial system from risks emanating from the country.
The number of residential purchases by the six nationalities increased to 29 in 2017 from 21 in 2016, and from single-digit figures yearly between 2013 and 2015, according to URA data.
Deals done by buyers from these countries jumped to 59 in 2018, before falling back to 39 in 2019 and 21 in 2020. Buyers returned in 2021 with 32 purchases, and another 23 deals done in 2022.
In the first eight months of 2023 so far, there have been just eight such transactions filed.
In total, 232 residential properties were sold to buyers of these nationalities between 2016 and 2023, out of 339 transactions chalked up since 1995.
BT previously reported that the group of foreigners arrested in the billion-dollar money-laundering case in Singapore had been picking up properties as far back as 2017. These included sales of various prime-district condominiums and landed properties.
By nationality, buyers from Cambodia had the largest share of private property transactions analysed by BT, with 74 sales with caveats lodged since 2016. This was followed by Vanuatu, with 50 deals found, and Cyprus, with 43 deals.
Another 36 transactions were traced to those of Saint Kitts and Nevis nationality, 16 to Turkish nationals and 13 to those holding a passport from Dominica.
The police said on Aug 18 that the 105 properties seized are owned by persons under investigations, their spouses, or companies that are linked to them. They comprise seven detached bungalows in Sentosa Cove, 79 condominium units (including 19 units under construction), and 19 commercial or industrial spaces.
The Singapore government recently moved to curb foreign buying of residential property, slapping a 60 per cent Additional Buyer’s Stamp Duty (ABSD) rate on any residential property purchase by a foreigner. Further, any entities (excluding developers) or trusts purchasing residential properties will pay ABSD of 65 per cent.
Since Jul 20, foreigners have also been required to receive government approval to buy land currently zoned as “commercial and residential”. “Commercial and residential” properties may include shopping centres, hotels, and some shophouses.
One of the 10 accused persons, Su Jianfeng, is linked to a deal involving a freehold shophouse at 28 Keong Saik Road, which is held in the name of a company.
William Lai, chief executive officer of property data-analytics company Amicus, said transactions from these higher-risk countries can be “rather suspicious”.
“There are genuine buyers from these countries, but there could also be golden passport holders who are buying property in Singapore,” he said.
“Shophouses are popular places to park funds as the quantum is large and there is no ABSD. They also have a good return on investment, since you can rent them out.”
https://www.businesstimes.com.sg/property/nationals-higher-risk-countries-bought-least-230-singapore-properties-over-past-7-years
Deals done by buyers with passports from Cyprus, Dominica, Saint Kitts and Nevis, Turkey, Vanuatu and Cambodia appear to have peaked in 2018
Aug 27, 2023
SINCE 2016, there have been at least 232 residential property deals done by holders of passports from the same countries as those arrested in the billion-dollar money-laundering bust this month.
The tally, based on an analysis of official data, is substantially higher than the 105 properties – estimated to be worth S$831 million – seized by Singapore police during the anti-money laundering raid on Aug 15.
The Business Times (BT) analysed property transaction data from the Urban Redevelopment Authority (URA) based on purchasers’ nationalities. The data stretched from 1995, when records were first available, to August 2023.
In 2016, there was a discernible spike in residential property deals done by buyers with Cambodia, Cyprus, Dominica, Saint Kitts and Nevis, Turkey and Vanuatu nationalities. The 10 foreign nationals arrested on Aug 15 are said to have originated from China, but all held passports from those countries.
Of these countries, most are on a list of 14 nations the OECD has identified as having citizenship-by-investment schemes that “potentially pose a high risk to the integrity” of a global treaty seeking to address money laundering.
Cambodia was added to the Financial Action Task Force (FATF) grey list in 2019, but was removed this year after efforts by authorities to crack down on financial crime.
Countries on the FATF grey list are subject to increased monitoring, while those on the black list are called upon to implement measures to protect the international financial system from risks emanating from the country.
The number of residential purchases by the six nationalities increased to 29 in 2017 from 21 in 2016, and from single-digit figures yearly between 2013 and 2015, according to URA data.
Deals done by buyers from these countries jumped to 59 in 2018, before falling back to 39 in 2019 and 21 in 2020. Buyers returned in 2021 with 32 purchases, and another 23 deals done in 2022.
In the first eight months of 2023 so far, there have been just eight such transactions filed.
In total, 232 residential properties were sold to buyers of these nationalities between 2016 and 2023, out of 339 transactions chalked up since 1995.
BT previously reported that the group of foreigners arrested in the billion-dollar money-laundering case in Singapore had been picking up properties as far back as 2017. These included sales of various prime-district condominiums and landed properties.
By nationality, buyers from Cambodia had the largest share of private property transactions analysed by BT, with 74 sales with caveats lodged since 2016. This was followed by Vanuatu, with 50 deals found, and Cyprus, with 43 deals.
Another 36 transactions were traced to those of Saint Kitts and Nevis nationality, 16 to Turkish nationals and 13 to those holding a passport from Dominica.
The police said on Aug 18 that the 105 properties seized are owned by persons under investigations, their spouses, or companies that are linked to them. They comprise seven detached bungalows in Sentosa Cove, 79 condominium units (including 19 units under construction), and 19 commercial or industrial spaces.
The Singapore government recently moved to curb foreign buying of residential property, slapping a 60 per cent Additional Buyer’s Stamp Duty (ABSD) rate on any residential property purchase by a foreigner. Further, any entities (excluding developers) or trusts purchasing residential properties will pay ABSD of 65 per cent.
Since Jul 20, foreigners have also been required to receive government approval to buy land currently zoned as “commercial and residential”. “Commercial and residential” properties may include shopping centres, hotels, and some shophouses.
One of the 10 accused persons, Su Jianfeng, is linked to a deal involving a freehold shophouse at 28 Keong Saik Road, which is held in the name of a company.
William Lai, chief executive officer of property data-analytics company Amicus, said transactions from these higher-risk countries can be “rather suspicious”.
“There are genuine buyers from these countries, but there could also be golden passport holders who are buying property in Singapore,” he said.
“Shophouses are popular places to park funds as the quantum is large and there is no ABSD. They also have a good return on investment, since you can rent them out.”
https://www.businesstimes.com.sg/property/nationals-higher-risk-countries-bought-least-230-singapore-properties-over-past-7-years