Singapore's Clampdown on Family Offices Linked to Financial Crimes

Singapore has blocked 3% of applications for tax-exempt family offices over criminal links. Recent scandals include revoking incentives for offices tied to the Prince Group, accused of scams using trafficked workers. Authorities continue to tighten scrutiny following a massive 2023 money laundering scandal.

Singapore's government has tightened its grip on family offices, particularly those linked to crimes. Over the past three years, 3% of 1,300 applications for tax-exempt status have been rejected, according to Chee Hong Tat, national development minister.

Further scrutiny followed ties between some family offices and the Prince Group, a multinational network tied to widespread scams involving trafficked labor. Eventual sanctions led to the seizure of over S$150 million in assets, including properties and bank accounts.

The city-state remains a favored financial hub due to low taxes and strategic location, but recent crime-linked inflows highlight the sector's challenges. Authorities have tightened oversight after a 2023 laundering scandal, with financial institutions enhancing due diligence procedures.

(With inputs from agencies.)