“Fujian Gang” allegedly linked to S$1 billion money laundering case

SINGAPORE: On Tuesday (15 Aug), Singaporean authorities apprehended ten individuals and confiscated assets, including properties and luxury cars, with an estimated value of approximately S$1 billion (equivalent to US$737 million).

These actions were carried out as part of a comprehensive investigation into an alleged money laundering syndicate.

The ten detainees, hailing from diverse nationalities but sharing a common Fujian heritage, were taken into custody and subsequently charged in court on Wednesday evening.

Their charges encompass a range of offences, including forgery, money laundering, and resisting arrest.

Among them, there is a wide range of nationalities represented, including Cypriot, Turkish, Chinese, Cambodian, and Ni-Vanuatu.

Additionally, twelve individuals are aiding with current investigations, and eight are on the police’s wanted list.

On Friday, the Ministry of Manpower (MOM) disclosed that the 10 foreigners, consisting of nine men and one woman aged between 31 and 44, held Employment and Dependant Passes.

This high-profile money laundering case has reverberated across the entire island, sparking inquiries into the extended periods of residence for some suspects within Singapore.

Additionally, the significant property acquisitions made by certain individuals in the city-state have garnered substantial media attention, prompting public discussion and scrutiny.

‘Fujian Gang’ allegedly linked to the High-profile money – laundering case

According to Singaporean Chinese media outlet Lianhe Zaobao, an insider source has disclosed that a group allegedly involved in the money laundering case, known as the “Fujian Gang,” could potentially consist of hundreds of members.

An undisclosed real estate agent interviewed by “Lianhe Zaobao” stated, “The individuals implicated in this case are all hailing from China’s Fujian province.”

Within this group, there are several main factions with surnames like Su, Wang, Hu, and Chen.

“While these factions might not be closely connected or interact frequently, they are all aware of each other’s existence.”

Among the apprehended, Su Haijin and Wang Dehai are suspected to lead the Su and Wang factions, respectively.

High-profile property acquisitions, with aggressive bargaining on the price

The agent further highlighted, “The ‘Fujian Gang’ has made substantial acquisitions of upscale residences in locales like Sentosa Cove and the Orchard Road vicinity.”

“Despite their wealth, they haggle over prices, sometimes engaging different brokers to see who can offer the highest discount.”

Another real estate agent shared with Zaobao that members of the Fujian Gang often exhibit limited formal education yet possess astute “street-smart traits.”

Additionally, they are known for their assertive bargaining, occasionally managing discounts ranging from 20% to 30%. Some brokers undertake their transactions for reputational gain and modest profits.

However, more seasoned brokers would opt to avoid involvement to prevent complications.

In recent years, numerous high-profile private property transactions and lease agreements have garnered local attention.

It’s understood that many of these involve the Fujian Gang.

Illustrative instances encompass a Chinese purchaser who procured 20 units at Canninghill Piers for S$85 million in June of the prior year, alongside another individual who leased a premium foreigner’s residence at Queen Astrid Park for S$200,000 monthly.

In 2021, a beachfront house and two adjacent houses in Sentosa Cove were sold for S$39.33 million and S$36.37 million, respectively, with the buyers being Su Baolin and Su Haijin, who have since been arrested.

(LEFT) Su Haijin and (RIGHT) Su Baolin

In general, aside from beachfront houses in Sentosa Cove, foreigners are not permitted to purchase premium houses or landed properties.

Generous Chinese tenants

A broker frequently engaged in luxury property transactions divulged that over the past year, they have encountered notably generous Chinese tenants during the leasing of landed properties.

This was a rarity previously. These Chinese tenants typically arrive as families or groups, often displaying a willingness to pay significantly higher rents than market norms.

As an example, they mentioned hearing about a Chinese tenant offering nearly S$40,000 per month for a premium foreigner’s house and wanting to sign a five-year lease, with plans to spend S$1 million on renovating the property.

Such extravagant tenants were uncommon in the past.

The broker also emphasized that, as professionals, they bear the responsibility of scrutinizing tenants’ backgrounds, ensuring legitimate income sources, and absence from money laundering activities.

Therefore, experienced brokers conduct background checks on tenants to avoid renting to those who seem unreliable.

“However, in the past year or two, demand for premium foreigner’s houses has surged, and many landlords have become more demanding. Rent that was S$15,000 initially has risen to over S$30,000 upon renewal.”

In the local context, houses with rents of S$30,000 to 40,000 are generally not preferred by company executives or businesspeople. As a result, potential tenants often appear somewhat dubious.”

Another broker stated, “Their property and vehicle purchases are conducted through normal banking procedures. Both we and the banks have conducted ‘know your customer’ (KYC) and anti-money laundering (AML) checks. ”

“They have passed these checks without any indication of criminal activity, ” the broker added.

Extravagant lifestyle of the ‘Fujian Gang’

When delving into the extravagant lifestyle of the Fujian Gang, a broker who was interviewed by Zaobao unveiled that many among them relish the nightlife, often splurging amounts exceeding S$100,000 in a single evening at nightclubs.

Furthermore, they have a penchant for acquiring luxury automobiles through parallel importers and indulging in designer bag purchases at upscale brand boutiques.

“The most interesting part is that these individuals seem to have a fondness for singing, as they often set up karaoke rooms and mini golf courses in their houses. ”

The costs involved in adorning and equipping these karaoke rooms alone could tally up to approximately S$1 million, while the construction of the mini golf course incurs around S$300,000.

Regarding the arrest of the ten foreigners, the interviewed brokers praised law enforcement authorities, believing that this is beneficial for the long-term development of the local property market.

One of them stated, “Their unrestricted property purchases and rentals here could distort the real estate market and do not contribute positively to our country’s economy.”

Chinese buyers dominated the market for non-landed luxury homes in the first half of the year

It is worth to noted that real estate implicated in these high-profile cases will be confiscated by the government and auctioned off after the legal proceedings conclude.

Furthermore, real estate agents who fail to disclose suspicious transactions to buyers during property sales could potentially be in violation of the law.

Around 60 real estate agents who were involved in selling properties to the suspects are expected to be requested to assist in the investigation, Zaobao reported.

During the first half of the year, non-landed luxury homes and overall non-landed private homes were most popular among Chinese buyers.

Based on a recent research report by Edmund Tie, the average transaction price for non-landed luxury homes in the first half of the year stood at S$16.9 million, reflecting a 9.6% increase from the second half of the previous year.

This rise can be attributed mainly to the escalating demand for luxury homes among high-net-worth individuals and affluent new immigrants.

However, the situation differs slightly for landed private homes, where the average price experienced a decline of 4.6% to S$20.5 million, compared to a 10.9% increase in the second half of the previous year.

The three most expensive transactions for landed private homes encompassed three premium bungalows on Nassim Road, amounting to a total of S$206.7 million, with a per-square-foot price of S$4,500. The buyers were an Indonesian family.

Notably, Chinese buyers were the largest demographic purchasing non-landed luxury homes during the first half of this year.

Furthermore, they also accounted for the greatest demand for overall non-landed private homes.