POFMA correction order issued to Bloomberg following article on Good Class Bungalow – Mothership.SG

Correction directions, under the Protection from Online Falsehoods and Manipulation Act (POFMA), have been issued against Bloomberg and other publications of the second Minister of Law, Edwin Tong.

According to a press release from the Ministry of Justice dated December 23, 2024, the instructions were issued following articles and messages communicating false statements of fact about transactions relating to Good Class Bungalows (GCB).

The Justice Department cited a Bloomberg article published on December 12, 2024 and shared on his Facebook and X (formerly Twitter) accounts.

This article has also been republished in its entirety by the The Edge Singapore the same day, and republished on his Facebook account.

The ministry also cited articles from Independent Singapore And The online citizenboth also published on December 12, 2024 and reposted on their Facebook accounts.

The online citizen also shared his article on his Instagram account.

What do the correction instructions involve?

Under the correction instructions, Bloomberg, The Edge Singapore, Independent Singapore And The online citizen will be respectively required to post correction notices against the original article and posts, or in a specified online location where the article or post has been removed.

These notices will indicate that said articles or posts communicate false statements of fact and provide a link to the government’s clarification.

“This will allow readers to read both versions and draw their own conclusions,” the Justice Department said.

What did the Bloomberg the article says?

According to the government fact-checking website, ActuallyBloomberg had “communicated” the lie that there are no publicly available government records of GCB sales transactions, if caveats are not filed.

According to the URAA reservation is a legal document lodged with the Singapore Land Authority by a buyer to protect their interests after exercising an option to purchase or signing a sale and purchase agreement.

Furthermore, the article further communicated the lie that the identity of the ultimate beneficial owner does not need to be disclosed to the government, and therefore the government is not aware of the identity of the beneficial owner ultimate, in GCB real estate transactions purchased through a trust agreement or shell. business.

The article also exposes the lie that GCB’s real estate transactions can be carried out without any government control over the identity of the ultimate beneficial owners.

Property and transfer information available via the SLA portal

Actually clarified that information on ownership and property transfers, including for all GCBs, is available on the Integrated Land Information Service (INLIS) portal which is managed by the Singapore Land Authority (SLA).

This regardless of whether an opposition has been filed or not for the sale transaction.

Nor are the caveats intended to track real estate transactions or ensure transparency.

The purpose of a reserve is to protect the interests of the buyer, mortgagee or other parties who have a legal right to the property and are filed voluntarily by parties who wish to protect their interest in a property.

The government has clear disclosure requirements on the identity/citizenship of purchasers and ultimate beneficial owners for all landed residential property transactions.

The government also imposes clear requirements for disclosure of the identity and citizenship of purchasers and ultimate beneficial owners for all residential property transactions, including GCB transactions.

This is regardless of whether a contingency is filed for the transaction or not, and whether the purchase is made by an individual, entity or through a vehicle such as a trust or corporation, including a shell company .

SLA also requires that the identity and citizenship of the purchaser be declared when lodging the instrument of transfer at the Land Titles Registry, as part of the sale process of landed residential properties, including GCBs.

Requirements for residential land property transactions

Additionally, for all residential real estate transactions carried out under trust agreements, solicitors are required to produce a copy of the trust deed to SLA. SLA verifies and verifies the identity of the ultimate beneficial owner.

For all residential real estate transactions in which the buyer or beneficial owner is a business, the applicant must meet strict requirements before they can obtain a certificate of authorization to purchase the residential landed property.

The company must be incorporated in Singapore and all of its directors and members must be Singapore citizens or Singapore entities as defined in the RPA.

Additionally, companies incorporated in Singapore are required by the Companies Act 1967 to maintain accurate and up-to-date information on their beneficial ownership.

Bloomberg the article also incorrectly claimed that the primary responsibility for combating money laundering in real estate transactions lay with real estate agents

Actually also pointed out that another lie conveyed by the article is that the primary responsibility for combating money laundering lies with real estate agents and other service providers.

Another lie from Bloomberg is that for GCB real estate transactions, there is no publicly available government document regarding the GCB transaction if no caveat is filed, nor is there any requirement to disclose to the government the identity of the ultimate beneficial owner in a trust arrangement or shell company.

This therefore allows parties (including ministers and wealthy migrants) to transact on these properties in a way that facilitates money laundering, which is wrong, Actually said.

The government has the primary responsibility to combat money laundering in real estate transactions

In response to these, Actually stressed that the government has the primary responsibility to combat money laundering in real estate transactions and has put in place an anti-money laundering framework to counter these risks.

This includes transactions carried out through trust and corporate agreements.

The government also requires regulated private sector “gatekeepers” involved in property transactions to comply with the requirements of the anti-money laundering framework and carry out checks to identify and verify the identity of their clients, including beneficial owners. .

Where risks are higher, gatekeepers must also verify their clients’ sources of wealth.

The financial institutions involved are required to know the customers and the purpose of the transactions and, if necessary, the sources of the funds. The requirements are similar to the standards of the main financial centers.

Obligations are also imposed on transaction lawyers, property sellers and real estate agencies. These requirements and obligations are provided for by law.

The Government also requires these controllers, including financial institutions, to put in place processes to promptly identify and file a suspicious transaction report with the Suspicious Transaction Reporting Office of the Commercial Affairs Department of the Singapore Police Force, upon detection of any suspicious activity that could be linked to criminal conduct in their interactions with their customers.

The government is responsible for analyzing the reported information and taking enforcement action.

Request letters for Bloomberg

Earlier on December 16, Minister for Home Affairs and Law K Shanmugam and Minister for Manpower Tan See Leng announced via Facebook posts on December 16 that they would issue “request letters” following the “defamatory statements” made in the Bloomberg article regarding alleged real estate transactions.

They said they “take these allegations seriously” and have since “consulted legal advice”.

They added that action will be taken against those who published “defamatory statements about these transactions”.

Main images via Department of Justice/Facebook and Bloomberg/Facebook