After allegedly receiving smuggled cash from South Korea and Japan, a 63-year-old South Korean man purportedly used the money to buy gold bars in Singapore and concealed them in shipments of air impact wrenches for export to the two countries.

The man, Kim Taek Hoon, did so through three logistics providers in Singapore while declaring that the shipments only contained those tools, according to a news release issued by the Singapore Police Force.

Received over S$1.5 billion in criminal gains which he used to buy almost 28,000 gold bars

Between 2014 and 2017, Kim allegedly received over S$1.5 billion in criminal gains from South Korea and Japan, which he then used to buy nearly 28,000 gold bars, according to the Commercial Affairs Department (CAD) and The Straits Times.

He had also allegedly failed to make the requisite declarations for his receipts of cash from overseas, even though each receipt of cash exceeded the prescribed value of S$20,000.

At one point in late 2014, he allegedly received more than S$31 million from South Korea and supposedly used the money to buy 628 gold bars.

Around this time, he also allegedly cheated two of the logistics companies, Pantos Logistics and DHL Singapore, into believing that his shipments only contained air-powered tools, when the shipments purportedly contained about 600 gold bars.

Kim is also accused of duping Singapore Customs by inducing it to approve cargo clearance permits for the shipments.

In total, between 2014 to 2017, Kim had allegedly made false declarations regarding more than 23,000 gold bars, saying that the shipments carrying them to South Korea and Japan contained only air-powered tools.

Arrested in December 2023

According to the police, investigations into Kim arose from an intelligence probe conducted by the CAD in cooperation with various agencies.

These include the Customs and the Anti-Money Laundering/ Countering the Financing of Terrorism Division of the Ministry of Law.

Kim was arrested in December 2023 after the CAD received information suggesting his potential involvement in the scheme.

CAD's Suspicious Transaction Reporting Office "had detected possible smuggling activities through analysis of financial intelligence from suspicious transaction reports (STRs), cash movement reports, precious stones and precious metals dealers (PSMDs) cash transaction reports (CTRs), and international cooperation with foreign counterparts," the statement read.

'Complex case of trade-based money laundering'

Characterising the case as a "complex case of trade-based money laundering", CAD Director David Chew expressed CAD's appreciation for those "who file reports in a timely manner", contributing to the detection of the case.

He also thanked Interpol and CAD's foreign counterparts for "their assistance in exchanging critical information and rendering assistance" in this case.

"Singapore is a major transhipment centre and trade hub for the region with tonnes of cargo flowing through our air and sea ports," Chew said.

"This flow of trade is vital to our economy, but transnational criminal syndicates will seek to abuse these large legitimate flows to conceal their laundering of illicit proceeds. This case illustrates Singapore's ability to detect these anomalous trade flows and arrest the perpetrators."

For allegedly deceiving the logistics providers into processing the shipments and the Singapore Customs into issuing Cargo Clearance Permits, Kim was handed 13 cheating charges by a Singapore court on Aug. 23.

Concurrently, he is also facing eight other charges.

They include four counts of failing to declare the cash exceeding the prescribed amount of S$20,000, which he received from overseas.

He is also facing another four counts for converting cash, which he had reasonable grounds to believe represented another person's benefits from criminal conduct, into gold bars.

In total, Kim was handed 21 charges.

For every count of money laundering, Kim could be jailed for up to 10 years, fined up to S$500,000, or both.

For every count of cheating, he could be jailed for up to three years, fined, or both.

For every count of failing to make a report in respect of more than S$20,000 cash brought into Singapore, he could be fined S$50,000, jailed for up to three years, or both.

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