FT whose company SG govt backed has been arrested

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FT whose company SG govt backed has been arrested

March 14th, 2015 | Author: Editorial

Yves Bouvier (left) and Minister S Iswaran (right)

A high-profile Swiss businessman and art broker, Yves Bouvier, has been arrested in Monaco over an alleged art scam through manipulating the price of artworks.
The investigation is said to spread across several countries and could shed light on the secretive world of fabulously wealthy private art collectors.
According to a source with knowledge of the affair quoted by the Swiss newspaper Le Temps, Yves Bouvier’s arrest is part of an “international investigation, over several jurisdictions and on several continents”.
In another report [Link], Mr Bouvier is also suspected of money laundering. “We believe Bouvier was using offshore companies to buy and sell art, with both the buyer and seller not identified,” a lawyer for a wealthy victim told the media.
Yves Bouvier is the chairman-cum-owner of Singapore Freeport, a state-of-the-art storage facility attached to Changi Airport in which high value artworks, jewellery, watches, diamonds, precious metals, antiques, vintage cars, carpets, wines, cigars and other luxury goods can be held legally, in a duty-free zone. He has similar facilities in Geneva and Luxembourg.
On the Singapore Freeport website, the company says why it chose Singapore. It chose to operate in the Lion City because the Singapore government “rapidly enacted regulations” for it to operate a duty-free zone at Changi Airport [Link]:
Allied to its famed ultra safe environment, Singapore resolve to elevate its art and lifestyle industry to the level of its financial sector proved irresistible. Singapore rapidly enacted regulations necessary to optimally operate a Freeport, and identified a dream location for the erection of what is now acclaimed as the world’s best facility for the trading of valuables.
The company’s operations are conducted with the “support” of the Singapore Customs, Singapore Police, CAAS and EDB [Link]:
Set at Changi airport, amongst the safest area in the Republic of Singapore, LE FREEPORT is heralding a new era in wealth protection and creation.
LE FREEPORT’s operations are conducted with the support of the Singapore Customs, the Singapore Police, the Civil Aviation Authority of Singapore, and the Economic Development Board.
Minister Iswaran officiates at the opening of Singapore Freeport
In fact, the project was so high profile that Minister S Iswaran was invited to grace the official opening of the facility in 2010 [Link].
Mr Iswaran said at the opening, “High net worth individuals in Asia are spending larger proportions of their wealth in ‘investments of passion’, such as collectibles and fine art.”
“The Asian contemporary art market is booming. Art is increasingly seen as a viable investment option for wealthy individuals and the corporate sector,” he noted.
He said that such a trend is fueling business opportunities in the provision of services to meet the needs of the growing art and collectibles industry in Asia.
He added that the secure, world-class facility enables art collectors to store and trade freely their high-value collections.
“We are pleased that Singapore was chosen as its base for operations,” he thanked Mr Bouvier. “Singapore Freeport’s presence here will also be a strong catalyst to the growth of the art and collectibles industry in Singapore.”
“In the long run, we hope to become a major marketplace for the visual arts, performing arts and collectibles in Asia,” he added.
“I wish Singapore Freeport every success in your future endeavors.”
Accusations of storing illicit goods
Another report speculates that Mr Bouvier’s arrest follows a complaint about his so-called “freeports” – vast repositories where ultra-high net worth individuals keep their treasures [Link].
Mr Bouvier’s modus operandi is to assure his super-rich clients that everything would be kept safe and under conditions of utter secrecy.
This has led to accusations that the freeports are being used to avoid tax, and even to fence off stolen property before it is sold.
A report from The Telegraph concurs [Link]:
Wealthy individuals are increasingly storing their assets in freeports, such as the one in Luxembourg, which critics say are a new form of tax haven. Their clients also include investment funds, museums and galleries.
The growth of freeports comes as countries such as Luxembourg and Switzerland have clamped down on banking secrecy in a bid to shake off their reputations as tax havens.
Freeports were formerly known as bonded areas were initially used to store commodities and manufactured goods. But more recently they have been accused of being used for smuggling and other illicit activities.
Richtung22 – a pressure group campaigning against tax avoidance – said that Mr Bouvier’s Luxembourg site is typical of many being used to avoid tax, and to cover up other illegal activities.
It is not known if the Singapore site is implicated in Monaco police investigations.
In any case, TR Emeritus has written about Singapore Freeport in the past and lamented the fact that, whereas gold traded for investment and treasures stored in Singapore Freeport are GST-exempt, Singaporeans continue to pay GST for medical drugs (‘Gold, GST and N95 masks‘).


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