Taipei  - Taiwan on Monday thanked Singapore for offering to help Taipei probe suspected money laundering by former president Chen Shui-bian.

"We are happy to see that Singapore is willing to provide legal assistance and to jointly fight cross-country crime," the Central News Agency (CNA) quoted Deputy Foreign Minister Andrew Hsia as saying.

Hsia made the remark after Singapore's trade office announced that Singapore would assist Taiwan in probing the suspected money laundering by former president Chen and his family.

Because it refuses to allow its financial system to be used for illegal activities, Singapore contacted Taiwan's Supreme Prosecutor's Office to provide the necessary assistance allowable by Singaporean law, Singapore's trade office was reported as saying.

In January 2008, Chen's wife Wu Shu-chen deposited 20 million US dollars - campaign funds from the 2000 and 2004 presidential election which Chen has not declared - into several foreign bank accounts, and eventually into a Swiss bank account.

One of the deposits was made to an account at the Standard Merchant Bank Asia in Singapore opened by Wu's elder brother Wu Ching-mao.

Taiwan has also required legal assistance from Swiss prosecutors.

Chen, former chairman of the Democratic Progressive Party (DPP), served as Taiwan's president from 2000-2004 and from 2004-2008.

Corruption scandals involving Chen's family and DPP officials caused the party to lose the 2008 election to the pro-China Chinese Nationalist Party (KMT).

Chen quit the DPP on August 15 as the party, in reaction to his money laundering allegations, was preparing to expel him. (dpa)