Property slump
Media reports have linked the ongoing probe to a cooling of Singapore’s luxury property market.
Knight Frank reported that demand for rental properties slipped in the second quarter of 2023, with rents in the ultra-luxury segment falling almost 4 per cent, compared with the 9 per cent gain in the previous quarter.
Meanwhile, high-end bungalow sales are set for their worst year in nearly a decade, with just eight sold as at the end of September, according to data compiled by the real estate company. This compares with 20 mansions sold in 2022.
However, real estate experts, including Ms Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie, have attributed the slowdown in overall sales to buyers turning cautious in the face of higher-for-longer interest rates, slowing economic growth and geopolitical tensions.
Instead of a slump, family-owned jeweller Ivy Masterpiece said the firm’s clientele is in fact growing, and so is clients’ spending.
Mr Ronald Low, a shareholder in the company, said: “We’ve done better every year since Covid-19. We are still on track for that this year.”
He added that bigger spenders are not worried about the ongoing investigation as their funds are from legitimate sources.
Ms Belinda Chua, founder of Flower Diamond, said her clients are long-time customers who have personal relationships with her.
“Our new clients are also usually introduced to us by existing customers and friends, so a certain level of trust is there,” she added.
Regulated dealers of precious stones and metals like Chuan Watch are required to file cash transaction reports (CTR) to the Suspicious Transaction Reporting Office, for cash and cash equivalent transactions that exceed $20,000.
Regulated dealers are businesses that are registered under the Ministry of Law’s Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act.
Mr Lim said Chuan Watch has also been briefed by banks on verifying customers’ credit cards, signatures and names.
“If customers want to pay for the watches in cash, we will also have to lodge a CTR,” he added.
Mr Low said the Law Ministry briefs dealers in the industry on the Act every year. Ivy Masterpiece also hires accounting firm Deloitte to audit the company, to ensure all records are properly documented.
The report is submitted to the ministry.
“Most of our customers pay by credit cards, so there is a paper trail. We will outright refuse to conduct business with people who try to pay us with stacks of money,” said Mr Low, adding that the firm also conducts its own due diligence when dealing with new or potential customers.
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