SINGAPORE: The head of a Japanese criminal syndicate accused of laundering ¥70 billion (S$628.7 million) for organized crime had ties to Singapore, including property ownership and directorships in local firms, The Straits Times reports.

Sotaro Ishikawa (石川宗太郎), 35, fled Japan in February amid police investigations but maintained a condominium in Bukit Timah and was appointed director of the Singaporean software firm, Rivaton, in March.

Ishikawa’s syndicate, Rivaton Group, is believed to have over 40 members and systematically set up shell companies in Japan to launder money linked to scams and illegal gambling.

The Osaka Prefectural Police revealed the group utilized corporate accounts of at least 500 companies and 4,000 bank accounts to process illicit funds.

Both Ishikawa and his second-in-command, Kosuke Yamada (山田耕介), 39, were arrested on 9 July after returning to Japan from Dubai.

Syndicate Leadership Tied to Singapore

Several senior members of the syndicate were also linked to Singapore-based companies.

Yamada, who resided in the same Bukit Timah condominium as Ishikawa, was appointed director of KO Enterprise Next in September 2023.

Takamasa Ikeda (池田隆雅), 38, the group’s third-ranking officer, lived in Novena and was director of local advertising firm Glosal, having been arrested on 2 September after flying from Singapore to Japan.

Japanese authorities issued a wanted notice in August for five senior syndicate members, including Ishikawa, Yamada, and Ikeda.

The other two leaders, Hiroyuki Kawasaki (川崎博之) and Shinya Ito (伊藤真也), were arrested in the Philippines, with plans for their extradition to Japan.

Shell Companies and a Singapore Connection

The syndicate allegedly operated with layers of management, functioning like a legitimate business.

According to the Sankei Shimbun, the group maintained standard office hours, managed by three tiers of staff, and operated with detailed procedures to avoid suspicion.

This included automated systems that transferred funds between accounts based on balance levels or timing.

In Singapore, all of the companies linked to the syndicate were established by a Japanese lawyer and Singapore permanent resident.

He claimed to have conducted thorough due diligence checks on the suspects, including meeting them personally in Japan and verifying their documents.

The lawyer expressed shock upon recognizing one of the men arrested in Japan and subsequently filed a suspicious transaction report with Singaporean authorities.

While cooperating fully with Japanese officials, he stated that he had not been contacted by Singapore authorities regarding the case.

Authorities Continue Investigations

The Rivaton Group allegedly provided money-laundering services to various criminal organizations under the guise of being a payment solutions provider.

A Japanese police official noted the syndicate’s organizational structure, with clear divisions of responsibility in areas such as fund transfers and interaction with financial institutions.

The lawyer responsible for setting up the shell companies emphasized that he had taken extra precautions after Singapore’s S$3 billion money laundering case earlier this year but had found nothing suspicious in his dealings with the syndicate members.

The Suspicious Transaction Reporting Office (STRO), Singapore’s financial intelligence unit, has reportedly requested detailed information on the assets of the controversial S Alam Group, both in Bangladesh and overseas.

The request signals growing international scrutiny of the Chittagong-based conglomerate, which has been the subject of various financial and legal controversies in recent months, particularly after the fall of Bangladesh’s Sheikh Hasina government on 5 August 2024.

According to the Dhaka Tribune, the request was confirmed by an official from Bangladesh’s Financial Intelligence Unit (BFIU), who disclosed that the inquiry was communicated via email from STRO.

The official, speaking on condition of anonymity, stated, “We are preparing the details of the S Alam Group and are ready to send this information to STRO.”

The inquiry comes in the wake of media reports that allege S Alam Group possesses substantial undisclosed assets abroad, including significant holdings in Singapore.

Recent reports highlight that S Alam Group, chaired by Saiful Alam Masud, has invested heavily in Singapore, amassing a business empire valued at approximately S$700 million (Tk6,300 crore).

According to The Business Standard, the group has acquired properties including three hotels—Hilton Garden Inn, Holiday Inn Express, and Ibis Novena Hotel—along with 27,179 sq-ft of retail space in Centrium Square. These acquisitions were made under several companies registered in Singapore, with S Alam and his wife Farzana Parveen listed as directors.

Notably, S Alam’s lavish lifestyle has also drawn attention. A three-storey mansion on Jalan Merlimau, Singapore, built in 2019, is valued at S$30 million. The mansion, lacking a visible number plate, is known for its fleet of luxury cars parked within its gates.

According to construction workers and locals, the house, which spans 12,260 sq-ft, is a residence for S Alam’s family.

Following the regime change, Bangladesh Bank reconstituted the boards of the banks previously controlled by S Alam Group. The conglomerate now faces serious allegations, including claims that Tk1.13 lakh crore (approx. US$10 billion) was embezzled from these banks through fraudulent documents.

In response to these allegations, Bangladesh’s central bank, the government, the BFIU, and the Bangladesh Securities and Exchange Commission (BSEC) have launched a coordinated effort to investigate the group. Authorities have frozen the personal accounts of the group’s owners, while banks have imposed transaction restrictions on the company.

Despite these actions, S Alam Group has been actively seeking relief. On 12 September 2024, the group submitted a formal appeal to the government and Bangladesh Bank, requesting financial, social, and legal assistance to lift the freeze on their accounts and restore normal operations