singapore authorities are laying the ground for prohibition orders slapped on assets rounded up in the money laundering dragnet to be lifted, so that proceeds can be recovered.

The Singapore Police Force confirmed on Friday (Feb 9) that prohibition of disposal orders had been issued against several shophouses as part of investigations into the group of foreign nationals suspected to be involved in money laundering.

Some of these properties, BT had earlier found, were owned by companies linked to Chinese nationals Su Binghai and Su Fuxiang, who have been identified as persons of interest to the police. The properties recently surfaced on the market and had been put up for sale by receivers on behalf of DBS.

“These properties had earlier been used as collateral to secure loans from DBS, before the police had commenced their investigations against these individuals,” the police said in response to media queries.  

“Following the issuance of the prohibition orders, DBS informed the police that these companies had defaulted on their loans, and sought permission to exercise its contractual rights to repossess and sell the properties. The police, in consultation with the Attorney-General’s Chambers, considered and acceded to the request to initiate the process to sell the properties.”

DBS earlier this week confirmed it was foreclosing and trying to sell the properties. It has appointed receivers to do so, it said during its Q4 results briefing on Wednesday. Chief executive Piyush Gupta said then: “Once they sell the property, we can get our money back – that’s all that’s happening.”

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DBS has about S$100 million in exposure to the money laundering case, involving mostly property purchases or retail customer accounts used to finance properties, Gupta disclosed at an earnings call last year. 

In Friday’s statement, the police said it would lift the prohibition orders “for DBS to exercise its contractual rights, when we are satisfied that the sale is conducted fairly”.

“The net sale proceeds (after repayment of the loan and relevant fees) will be seized by the police, at the conclusion of the sale. These proceeds will thereafter be dealt with by the courts at the conclusion of the case,” it added. 

Ten shophouses in Geylang, Telok Ayer and Amoy Street were put up for sale on Dec 1, 2023, by FTI Consulting on behalf of DBS. While there was no guide price, market observers have earlier estimated they were worth more than S$100 million combined.

The shophouses are owned by Su Fuxiang and Su Binghai, who had purchased the properties through two Singapore-incorporated companies, Suyh and Jiasheng Amoy, which they own. 

Another three shophouses at 4, 5 and 6 Stanley Street are being marketed by Knight Frank at a guide price of S$61.1 million. The Stanley Street shophouses were purchased by Aalto Group, whose sole director is Su Fuxiang. A mortgage under DBS was lodged in 2021. 

Both Su Fuxiang and Su Binghai are shareholders of New Future Holdings, the firm that nominated Wang Dehai for his Sentosa Golf Club membership.

Wang was one of 10 foreign nationals arrested in August 2023 in the islandwide operation for forgery and money laundering offences.