Singapore's Tightening Noose on Family Offices Amid Scandals

In response to family offices being involved in criminal activity, Singapore has increased scrutiny, blocking 3% of recent applications and revoking tax incentives for implicated offices. This comes as Prince Group faces sanctions for scams, contributing to money laundering concerns amidst growing wealth inflows.

Singapore has blocked 3% of 1,300 recent applications for tax-exempt status in wealth management, amid concerns about family offices' involvement in criminal activities. National development minister, Chee Hong Tat, revealed that two family offices tied to Prince Group, accused of operating scam centers, have had their tax incentives revoked.

Prince Group, linked to Cambodian businessman Chen Zhi, faces sanctions by the UK and US for using trafficked workers in global scams. Singaporean authorities seized over S$150 million in assets connected to the group last week. This case has highlighted the increasing scrutiny of family offices managing wealth in the region.

The city-state has benefited from an influx of wealth due to favorable policies, but this has led to crime-related issues like a massive S$3 billion money laundering ring in 2023. Consequently, Singapore has tightened its financial sector oversight, demanding thorough due diligence from lenders.

(With inputs from agencies.)