Three men and a woman aged 60 to 63 were charged in Singapore for their alleged involvement in a complex trade-based money laundering operation. The scheme involved importing signal converters with concealed gold from China, extracting and selling the gold, then exporting the mainboards back to China. The fraud targeted Chinese tax authorities through a VAT carousel, with fraudulent refunds transferred via payments to a Hong Kong-based mastermind. Singapore's Commercial Affairs Department uncovered the plot after receiving a tip in November 2020 and collaborating with Chinese law enforcement and Singapore Customs.
The suspects allegedly imported signal converters with gold concealed within them by a criminal syndicate, before extracting and selling the gold, and then exporting the mainboards back to China The four were charged for their alleged involvement in a value added tax carousel fraud which is said to have defrauded Chinese tax authorities of substantial VAT.
The long arm of law caught up on Wednesday with three men and a woman, aged between 60 and 63, as they were charged for their alleged involvement in a multi-national trade-based money laundering scheme involving gold smuggling. In a news release after the four were charged, the police said its Commercial Affairs Department first uncovered the "elaborate scheme" after receiving information on a possible value added tax carousel fraud in November 2020.
"As the information disclosed possible trade-based money laundering activities, the CAD conducted extensive probes into the activities of the syndicate through close collaboration with Singapore Customs and Chinese law enforcement counterparts," the police added. Three Singapore-registered corporate entities — Macropac Systems, Megaspeed Services, and Seg Metallic Electronics Trading — were found to have imported signal converters from two suppliers operated by a criminal syndicate in China.
Police said preliminary investigations revealed that the syndicate had arranged for gold to be hidden within the signal converters. The converters were then declared to China Customs as high-tech products and exported to the Singapore entities at inflated prices. Upon arrival in Singapore, the signal converters were dismantled and the gold extracted and sold, while the mainboards were exported back to China via Hong Kong companies for reassembly into the next batch.
This facilitated the transfer of fraudulently obtained VAT refunds to the Hong Kong-based mastermind through payments for these mainboards. Through this carousel-like arrangement, the criminal syndicate created a paper trail of sham transactions disguised as legitimate trades. CAD's director Peggy Pao said in a statement that Singapore, as an international hub for trade, transport and finance, will remain vigilant against syndicates that seek to operate fraudulent businesses or launder their proceeds through the city-state.
VAT carousel fraud, also known as missing trader intra-community fraud , is a sophisticated tax scam involving at least three companies that resell goods or services to each other with the intention of reclaiming VAT without paying it to tax authorities. This means that at least one company in a VAT carousel charges its customer VAT, without declaring it to the tax authority. At the same time, it claims a VAT refund when reselling the goods.
In so doing, the mala fide company keeps the VAT received, thus defrauding the taxman.
Please follow us on Google to support usVAT Fraud Gold Smuggling Money Laundering Trade-Based Fraud Singapore Police
Singapore Latest News, Singapore Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
Singapore Restaurant Owner Faces S$3.8 Million Tax Fraud and Money Laundering ChargesA restaurant owner in Singapore has been charged with 27 tax offenses and 3 money laundering counts, accused of evading nearly S$3.8 million in taxes. The case underscores the Inland Revenue Authority's strict stance on tax compliance and GST registration rules.
Read more »
Japan and China Coast Guards Clash Near Disputed Islands in East China SeaJapanese and Chinese coast guard vessels faced off near the disputed Senkaku/Diaoyu Islands, with each side accusing the other of intruding into its territorial waters.
Read more »
Singapore to Invest S$800 Million in Transport Research Over Five YearsSingapore will invest S$800 million (US$619 million) in transport research over five years, more than doubling its previous outlay, as it aims to remain a global transport hub. About two-thirds of the funding will go towards autonomy and digital twins for connectivity. The rest will support sector-specific research in aviation, maritime and land transport. The funding was announced under the National Research Foundation's Research, Innovation and Enterprise (RIE) 2030 programme, and will support research led by the Ministry of Transport. Acting Minister for Transport Jeffrey Siow announced the funding on Tuesday (Jul 7) during a motion on Singapore's transport strategy, tabled by the Transport Government Parliamentary Committee and led by its chairperson Tin Pei Ling (PAP-Marine Parade-Braddell Heights). Mr Siow said Singapore needed to be seen as a global thought leader in transport, warning that connectivity could no longer rely on physical infrastructure alone. "Supply chains are becoming more fragmented and more distributed," he said. "If Singapore is merely a place through which flows happen to pass, then one day these flows will simply pass us by." He said connectivity would increasingly depend on technology, with shippers and travellers choosing Singapore not because of proprietary technologies, but because the country is more efficient, more connected and "more reliable than the alternatives".Minister of State for Transport Baey Yam Keng said the funding would support research into new operating models using autonomous vehicles, vessels and robotics across Singapore's ports, airports and logistics network
Read more »
Four charged over scheme to smuggle gold from China in electronic devicesThe multinational money laundering scheme allegedly allowed a syndicate to fraudulently obtain export VAT (Value Added Tax) refunds in China.
Read more »