Each is given start-up capital of $20,000 to $30,000, to start running a "stall", rolling out loans on the streets for a 20per cent interest rate.

When the business is established, the Ah Longs expand by recruiting more men to carry out different functions.

Those interviewed said a well-organised syndicate could span up to six layers. They handle phone lines and bank transactions, carry out checks on credit-worthiness, keep data, recruit new clients and press for payment.

The towkay, in turn, expects a regular return, which can be about 5per cent of his investment every month.

As the business expands, attracting attention from the authorities, it becomes more important for syndicate members to remain anonymous.

Unlike in the 1980s, they no longer meet clients face-to-face. Instead, all deals are done via the phone and bank transfers, thickening the veil of secrecy.

Their numbers are often registered lines bought from foreign workers or those set up by debtors unable to repay. To keep from being tracked, they are changed every few months.

The loan sharks are never known by their real names. They go by nicknames - "Storm", "Seven", "Ah Goo" and "King Kong" just to name a few. Even these are switched every six months to further cloud their identities.

They also make it a point never to lend to strangers. Those who want a loan must be referred by syndicate members or former clients.

Technology has helped their operations. Money changes hands via electronic transfer, often to accounts set up by debtors unable to pay.

Debtors repay loans into bank accounts, and rapid transfers between multiple accounts are made once the money is deposited.

A CID officer said: "By the time the trail of money is followed to its end, the funds have sometimes dissipated."

To get debtors to pay up, the loan sharks outsource the "dirty work", causing the lower levels to multiply.

These "outsiders" are usually youths in need of fast cash or desperate debtors looking for a discount on their loans.

Said the CID officer: "Loan sharks outsource their business functions, employing debtors or youth as runners... to carry out harassment. These runners may not know exactly which loan sharks they are working for."

A former secret society member said: "The stupid work, you try to give to outsiders so you don't sabotage your own brothers."

Associate Professor Ho said that organised syndicates are difficult to break down, as lower rung members are easily replaced after a police crackdown. "This renewal process allows loansharking syndicates to continue their operations."

Tougher measures were introduced from 2005. The assets of convicted loan sharks can now be confiscated and their passports cancelled to prevent them from resuming their business from overseas upon release.

Because it is difficult to get syndicate members to testify against their leaders, suspected loan sharks can also be detained without a court trial.

The ministry says that, to date, 79 people have been detained this way for loansharking activities.

Still, those interviewed believe it will be tough to destroy the syndicates as there are always people without collateral who need quick money.

Also, those in the higher echelons of the syndicates may find themselves stuck in their roles.

Said a former loan shark runner: "It's not like you can just join or quit in a day, especially if you know too much. The big boss won't let you off so easily."

This article was first published in The Straits Times.

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