THE LATEST REGIONAL TRENDS IN CORRUPTION AND EFFECTIVE
COUNTERMEASURES BY CRIMINAL JUSTICE AUTHORITIESLam Seow Kin *I. INTRODUCTION
Corruption is an age-old crime, perhaps among the oldest known to humankind. It is amanifestation of greed and exploitation of power by corrupt individuals or entities. The nature of
the crime remains unchanged, but its methods have likely evolved alongside advancements in thetechnological, economic and the legal environment that we operate under. Therefore, it is timelythat the latest regional trends and countermeasures are reviewed. The Corrupt Practices
Investigations Bureau (“CPIB”) is the agency in Singapore dedicated to the fight against
corruption. We are pleased to have the opportunity to share our experiences and insights andcontribute to the collective effort of like-minded countries and agencies in the endeavour tocombat corruption.
II. CORRUPTION SITUATION IN SINGAPORE
The present level of corruption in Singapore is low and under control. Corrupt occurrences
are usually incidental and opportunistic, and not institutional or endemic. Majority of thecorruption cases reported and consequently investigated are from the private sector. On the other
hand, public sector cases are typically petty corruption committed by low or mid-level public
officials. Statistically, private sector cases form a range of between 85% to 92% of yearlycorruption cases from 2014 to 2017. Among the private sector cases, construction and building
maintenance, wholesale and retail, and the logistics industry are areas of concern as we continue
to see cases relating to these industries.
A. Countermeasures through Effective Law Enforcement
1. Enforcement under the Prevention of Corruption Act
As corruption stems from greed, one of CPIB’s strategies to rip corruption at its core is todisgorge the criminal gains of the corrupt through the conduct of rigorous asset recovery efforts
and strict enforcement of associated money laundering offences. The aim is to render corruption
a high risk and low reward activity. In Singapore, investigators in CPIB are empowered under
the Prevention of Corruption Act (“PCA”) to arrest, search and seize properties related to thecommission of corruption offences.
In particular, Section 13 of the PCA contains an in-built mechanism to recover and disgorge
criminal proceeds from corrupt receivers. Anyone who is convicted of corruptly receiving any
gratification in contravention of the Act shall be assessed and ordered by the court to pay a*

Deputy Head of Investigations, Financial Investigations Branch, Corrupt Practices Investigation Bureau,
Singapore.

- 114 -

penalty equal to the amount of gratification received. The imposition of a penalty under this Act
is not a discretionary judicial measure but a mandatory one that has to be imposed, in addition to
any other punishments such as fines or imprisonment term that the court may mete out.
Between the period from 2015 to 2017, seizures made pursuant to investigations andsubsequently ordered by the Court to be forfeited to the State amounted to S$3.2 million.
Correspondingly and coincidentally, a total penalty of S$3.2 million has been imposed by the
Courts against corrupt receivers in the same period.
The following case illustrates CPIB’s concerted effort in disgorging illicit benefits. In 2017,a former executive of an oil major was charged with receiving bribes amounting to S$5.7 million
from a businessman, in return for advancing the former’s business interest with the oil major 1.
The accused person was also charged with associated money laundering activities relating to theuse of the criminal proceeds. Through investigations, the accused person was established to have
utilized his criminal proceeds to partially finance the purchase of 3 landed properties and 2
condominium apartments in Singapore. Accordingly, caveats were placed on these assets toprevented dissipation, with the view of eventually forfeiting the criminal benefits to the State.
The trial against the accused person is ongoing.
2.

Enforcement under the Corruption, Drug Trafficking and other Serious Crimes (Confiscationof Benefits) Act
The pursuit of depriving criminals of their benefits of criminal conduct is also aided by the
Corruption, Drug Trafficking and other Serious Crimes (Confiscation of Benefits) Act (“CDSA”).
The CDSA is the primary legislation in Singapore that criminalizes the laundering of criminal
benefits and provides for the investigation and confiscation of such benefits. Specifically, it
provides an extended reach beyond assets directly traceable to a criminal offence.
Under the CDSA, the court may make a restraint order or charging order on property owned
or linked to a person, as long as the court is satisfied that there is a reasonable cause to believethat benefits have been derived from his or her criminal conduct. In the eventuality that theperson is convicted of a serious offence such as corruption as specified in the CDSA’s schedule,
a confiscation order may be applied against him or her for the benefits that he or she had derived
from the criminal conduct. Any property or any interest therein (including income accruing fromsuch property or interest) held by that person that is disproportionate to his or her known sourcesof income, if it cannot be explained satisfactorily to the court, is presumed to have been derived
criminally until proven otherwise.
In the case of a match fixer 2 convicted in 2014 for attempting to fix a football match, CPIB
had conducted financial investigations against the accused person as he was suspected to be inpossession of assets disproportionate to his known sources of income, which include luxury
vehicles and real estate property. A concealed income analysis was performed against the1

See Straits Time article https://www.straitstimes.com/singapore/courts-crime/ex-bp-exec-charged-in-57m-briberycase
2
See Straits Times article https://www.straitstimes.com/singapore/courts-crime/businessman-match-fixer-eric-dingsi-yang-led-the-high-life- 115 -

accused and he was found to have accumulated illegitimate income over the years. An
application to confiscate the realizable assets of the accused under the CDSA has been made to
the Court and trial proceedings are underway.
B. Countermeasures through Public-Private Sector Partnership
Apart from rigorous enforcement efforts, CPIB also adopts a dual-pronged approach of
public outreach and education to address private sector corruption. CPIB has been exploringcollaborative opportunities with professional bodies and industry stakeholders to reach out to theprivate and business sectors. We engage the private sector through various platforms, such as
forum and prevention talks. In these talks, we share with companies and businesses cases ofinterests, update them on the developments in the international arena and also caution them on
the pitfalls and risks involved in non-adherence to our domestic anti-corruption and related laws.
1.

Launch of the Singapore Standard (SS) ISO 37001 on Anti-Bribery Management Systems
In April 2017, CPIB and SPRING Singapore 3 co-launched the Singapore Standard (SS) ISO
37001 on Anti-Bribery Management Systems 4, aimed at helping companies strengthen their antibribery systems and processes. The SS ISO 37001 is a voluntary standard designed to help
companies establish, implement, maintain and improve their anti-bribery complianceprogrammes. It specifies requirements for top management leadership and commitment, antibribery policies and procedures, risk assessments, reporting, monitoring and investigation
procedures, among several other requirements.
2.

Development of PACT: “A Practical Anti-Corruption Guide for Businesses in Singapore”
Recognizing that not all companies have the financial resources to adopt the SS ISO 370001,
CPIB also developed an easy to comprehend 4-step guidebook titled PACT: “A Practical AntiCorruption Guide for Businesses in Singapore” 5 to assist business owners to implement an anticorruption system within their companies. The PACT guidebook comes with business sector
case studies from different industries and provides free samples of Anti-Corruption Policy, Codeof Conduct, Declaration Forms and Risk Assessment Checklist for businesses. PACT’s four-stepframework is as follows;(i) Pledge - Companies are encouraged to implement their own anti-corruption policy andto create a code of conduct that employees can refer to in order to safeguard themselvesfrom falling foul of the law;

*Deputy Head Investigations, Financial Investigations Branch. Corrupt Practices Investigation Bureau, Singapore
3
SPRING Singapore is formerly an agency under the Ministry of Trade and Industry responsible for helping
Singapore enterprises grow and building trust in Singapore products and services. As the enterprise development
agency, SPRING works with partners to help enterprises in financing, capability and management development,
technology and innovation, and access to markets. As the national standards and accreditation body, SPRING
develops and promotes an internationally recognized standards and quality assurance infrastructure.
4
The (SS) ISO 37001 was Singapore’s adaptation of ISO 37001 Anti-Bribery Management Systems that was
launched on 15 October 2016. CPIB had led the working group from Singapore in the negotiation of the ISO 37001.
5
Refer
to:
https://www.cpib.gov.sg/sites/cpibv2/files/PACT%20A%20Practical%20AntiCorruption%20Guide%20For%20Businesses%20in%20Singapore.pdf- 116 -

(ii) Assess - Companies are encouraged to identify areas of high corruption risks and to
conduct periodical risk assessments focusing on vulnerable job functions and processes;(iii) Control & Communicate - Companies are encouraged to keep accurate records and clear
operating procedures, a robust reporting or whistle-blowing systems and audit checks
that are carried out periodically. Companies should communicate the anti-corruption
policy, code of conduct, internal control and reporting system to all its employees,
business partners and other stakeholders, if any;(iv) Track – Companies are encouraged to review their anti-corruption systems in a timely
manner following company re-organization, expansion in operations, newlegal/national/international anti-bribery standards, and shifts in the business operating
environment.
3.

Anti-Corruption Partnership Network for the Private Sector
CPIB has also established an Anti-Corruption Partnership Network with member companies
from the private sector. 25 companies have accepted CPIB’s invitation and attended theinaugural event on 11 September 2018. The Network is an initiative by the CPIB to promoteownership on the prevention of corruption in the private sector. It is a platform through whichawareness and materials on anti-corruption can be shared, and conversations can be held withlike-minded representatives from the member companies to drive the anti-corruption cause. The
desired outcome is for companies to adopt anti-corruption measures and inculcate a culture of
integrity and business ethics within their companies.
III. INTERNATIONAL TRENDS OBSERVED FROM SINGAPORE’S PERSPECTIVE
In our modern era of increasing connectivity, criminal activities as well as corruption caneasily transcend the boundaries of individual jurisdictions. Law enforcement agencies have tolook beyond their own shores and participate in collaborative efforts with foreign counterparts tofurther investigations and bring corrupt offenders to justice. This is evident in our investigations
as CPIB also pursues money laundering investigations pursuant to foreign corruption predicate
offences. Frequently, assistance is required from foreign authorities to prove a money
laundering offence; that the monies transacted within Singapore are related to corrupt activities
investigated by that foreign authority. On our part, active cooperation with foreign authorities
ensure that corrupt proceeds, if any, are identified early and the assets linked to foreign
corruption or other foreign serious crimes can be seized in exercise of our domestic investigative
powers, without the need for court orders. This ability to act quickly to seize criminal assets
prevents the dissipation of criminal proceeds and provides for possible repatriation of funds
subsequently to the requesting states, where applicable.
Over the years, we have observed a steady increase in money laundering investigations
arising from foreign predicate corruption offences. In fact, more than a third of money
laundering investigations undertaken by CPIB relate to foreign predicate corruption offences.
Furthermore, about 70% of assets recovered by CPIB are linked to foreign predicate corruption
cases.

- 117 -

A. Countermeasures through Active Cooperation
The following case studies illustrate the active cooperation undertaken by CPIB and its
counterparts.
In 2016, there were adverse news that senior public officials of a foreign country were
investigated for corruption and that criminal assets linked to them flowed to a few countries,
including Singapore. Given the reasonable suspicion that assets in Singapore might be criminal
proceeds, CPIB convened money laundering investigations into the assets of the senior public
officials in Singapore. Domestic investigations quickly identified several bank accounts of thesenior public officials and their family members amounting to more that SGD 20 million andthey were seized to prevent dissipation while investigations were ongoing. Caveats were also
placed on two other properties. With assistance from the foreign authority, CPIB officers also
flew to this country to record statements from one of the senior public official and his wife.
Meanwhile, CPIB is defending the seizure of the assets made pursuant to our domestic
investigations before our court, with the assistance of inputs obtained from the foreign authority.
The case is still under investigation and the funds remain frozen at this point.
In another case in 2016, CPIB received information that a local bank account was featured ina foreign adverse news and there were suspicious bank transactions in the bank account. CPIB
then, through our Financial Intelligence Unit, immediately alerted the foreign authority andsought their confirmation on whether the bank account was featured in their corruption
investigation. The foreign authority was also informed of the urgency of the matter as thebeneficial owner was making plans to move the funds out of Singapore. Within a day, the foreignauthority responded and produced court affidavits to exhibit that the bank account in question
was related to a foreign offence. With the information, CPIB immediately launched a money
laundering investigation and seized close to US$16 million in the account. Almost a year later,
the foreign authority followed up with a formal mutual legal assistance request to Singapore to
restrain the bank account. Had CPIB not acted to seize the assets earlier, the funds in the bankaccount would have been dissipated by the time the MLA request reached Singapore.
These case studies underscore the need for close cooperation among the international
community for effective investigation and ultimately recovery of assets.
IV. EMERGING TRENDS
On the technological front, the advent of cryptocurrencies is a familiar theme in internationallaw enforcement fora. The novelty of the blockchain technology backing the operation of suchalternative “currencies” have compelled law enforcement agencies to relook their investigation
capabilities when dealing with such emerging technologies. As a financial hub, Singapore has
seen the growth in number of cryptocurrency exchanges and initial coin offerings which areindicative that the adoption of virtual currencies is gaining traction. CPIB has not investigatedany case involving the use of cryptocurrencies but remains vigilant and mindful of its potential
use in corrupt transactions. To keep abreast of such technologies, our Computer Forensics
Branch and Investigations Training Unit have jointly developed investigative procedures toguide officers when dealing with the seizure and management of cryptocurrencies. CPIB officers- 118 -

are also trained in the use of open source information to track and trace the origins ofcryptocurrency transactions.
V. CONCLUSION
In our experience, corruption cannot be combated effectively in isolation by the sole efforts
of individual jurisdictions or its criminal justice system. Domestically, anti-corruption efforts
have to be complemented by public-private partnerships where companies instil anti-corruption
programmes with strong internal controls. At the international level, law enforcement agencies
have to foster and deepen cooperation to ensure expedient and fruitful resolution to corruption
cases.

- 119 -

THE STR AITS
TIMES

Ex-BP exec charged in $5.7m
bribery case

Clarence Chang Peng Hong, a former executive of BP Singapore, is accused of obtaining about
US$4 million (S$5.7 million) in bribes from a businessman. The 51-year-old allegedly used corrupt
proceeds to make partial payments for several properties to the tune of $3.97 million. Chang, who
was charged in court yesterday, had his bail of $200,000 extended until April 6. ST PHOTO: WONGKWAI CHOW PUBLISHED MAR 10, 2017, 5:00 AM SGT

Former regional director allegedly took bribes to advance interests ofbusinessman's Þrm

https://www.straitstimes.com/singapore/courts-crime/ex-bp-exec-charged-in-57m-bribery-case- 120 -

Elena Chong Court Correspondent(mailto:elena@sph.com.sg)

A former executive of BP Singapore was hauled to court yesterday to face charges of obtaining
about US$4 million (S$5.7 million) in bribes from businessman Koh Seng Lee.
Clarence Chang Peng Hong, BP's former eastern regional director for marine fuels, allegedly took
the bribes to advance the business interests of Mr Koh's company with BP.
Chang, who faces 47 charges, allegedly corruptly obtained bribes amounting to US$3.95 million
from Mr Koh, executive director of Paciﬁc Prime Trading (PPT), via Chang's HSBC bank accountin Hong Kong.
A total of 19 payments ranging from US$100,000 to US$350,000 were made to his bank accountbetween July 2006 and September 2008.
Chang, 51, is said to have also corruptly agreed to accept a bribe of $500,000 from Mr Koh sometime before September 2009 to advance the business interests of PPT with BP.

'ACTIVITIES OF CONCERN'
We became aware of some activities of concern in 2010 which we reported
to the authorities. These charges have been filed by the Singapore
authorities, we cannot comment on them.
A BP SPOKESMAN, who says Chang's employment with BP ended in July 2010.


Besides allegations that he had received bribes, Chang was accused of moving the corrupt
proceeds through his various bank accounts and, separately, using some of the proceeds topartially pay for properties.

https://www.straitstimes.com/singapore/courts-crime/ex-bp-exec-charged-in-57m-bribery-case- 121 -

On 16 occasions between January 2007 and March 2010, while he was at BP, Chang allegedlytransferred a total of $4.7 million, which were beneﬁts of corrupt proceeds, from his HSBC
account in Hong Kong to a POSB bank account and two other HSBC Singapore accounts. The
amounts ranged from $76,568 to $725,500.
He also faces 10 charges of allegedly using the corrupt proceeds to make partial payments forseveral properties to the tune of $3.97 million. The properties comprise three houses in Da Silva
Lane in Hougang, Jalan Limau Purut in Tanah Merah and Ettrick Terrace in Siglap, and two
condominium units in Pasir Ris Grove.
He is also accused of using $111,000, which formed part of his beneﬁts of criminal conduct, toacquire share capital in MindChamps Preschool @ City Square on Sept 16, 2009.
Chang's lawyer Alfonso Ang told the court that he had just been briefed. The case was adjourned
to April 6, and Chang's $200,000 bail has been extended until then.
A BP spokesman said in an e-mail that Chang's employment with BP ended in July 2010.
"We became aware of some activitiesof concern in 2010 which we reported to the authorities.
These charges have been ﬁled by the Singapore authorities, we cannot comment on them," shesaid.
The Corrupt Practices Investigation Bureau said in a statement that Singapore adopts a zerotolerance approach towards corruption. The bureau said it takes a serious view of any corrupt
practices and will not hesitate to take action against any party involved in such acts.
The maximum punishment for corruption is a $100,000 ﬁne and ﬁve years' jail on each charge.
If convicted of offences under the Corruption, Drug Traﬃcking and Other Serious Crimes(Conﬁscation of Beneﬁts) Act, Chang could be ﬁned up to $500,000 and/or jailed for up to sevenyears on each charge.

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THE STR AITSTIMESBusinessman match-Þxer Eric Ding
Si Yang 'led the high life'

Ding's luxury buys included an Aston Martin V8 Vantage for $551,500, and a house in East Coast for $1.1
million. ST PHOTO: ONG WEE JIN

 PUBLISHED JUL 23, 2014, 9:50 AM SGT

Prosecutors seek jail, heavy Þne ahead of sentencing

Walter Sim

Japan Correspondent(mailto:waltsim@sph.com.sg)

https://www.straitstimes.com/singapore/courts-crime/businessman-match-fixer-eric-ding-si-yang-led-the-high-life- 123 -An Aston Martin V8 Vantage for $551,500, a Porsche 911 for $281,400 and a terraced house in
East Coast for $1.1 million - all paid for in cash.
These were the luxury purchases which prosecutors cited yesterday to show the "trappings ofwealth" of local businessman Eric Ding Si Yang, 32, that arose from his match-ﬁxing activities.
Earlier this month, he was found guilty of three counts of corruption for providing three
Lebanese football oﬃcials with prostitutes as bribes for ﬁxing future matches.
Prosecutors pressed for a stiff sentence of four to six years behind bars, and a ﬁne of between$120,000 and $300,000 to be imposed.
Deputy public prosecutor Alan Loh said a heavy punishment was warranted because Singapore's
feted reputation as one of the least corrupt countries in the world had been "tarnished" byinternational reports of match-ﬁxing cartels operating out of the country.
He called match-ﬁxing an "insidious undermining of the basic precepts of fair play" that causes
great harm to society as it creates a "high-yield method for criminal organisations to laundermoney".
"The dangers of allowing match-ﬁxing to proliferate uninhibited are thus far more sinister thanwould appear at ﬁrst blush," he said, urging the court to make a "powerful and unambiguous
statement" that match-ﬁxing has no place in Singapore.
Mr Loh also cited court evidence that Ding has had ties with Dan Tan Seet Eng, named byInterpol as "the leader of the world's most notorious match-ﬁxing syndicate", who is now under
detention.
In mitigation, defence counsel Thong Chee Kun called the prosecutors' sentencing
recommendations "draconian". He argued for a huge ﬁne or, if the court deems it warranted, ashort custodial sentence.
Mr Thong said it is "trite law" that each case should be decided on its own facts.
"It cannot be right to make Mr Ding pay for the actions of every match-ﬁxer in Singapore," heargued. "The fact that Mr Ding had made certain purchases does not mean Mr Ding has used illgotten gains to ﬁnance his lifestyle." The defence also argued that no harm was caused because
no match was ﬁxed, and that the value of the bribes was low - though the prosecution argued thisshould bear little weight in "syndicated crime".

https://www.straitstimes.com/singapore/courts-crime/businessman-match-fixer-eric-ding-si-yang-led-the-high-life- 124 -

Ding is expected to be sentenced on Thursday.
waltsim@sph.com.sg

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