MAS cuts tax incentives for 2 family offices linked to Cambodia’s Prince Group

SINGAPORE: The Monetary Authority of Singapore (MAS) has ceased tax incentives for two single family offices (SFOs) linked to individuals associated with Cambodia’s Prince Group, which was sanctioned by the United States.

National Development Minister and MAS deputy chairman Chee Hong Tat told the Parliament on Wednesday (Nov 5) that prior to the indictment of Prince Group chairman Chen Zhi by the US, Singapore police had been conducting probes into him and his associates.

The Associated Press reported that US authorities charged the 38-year-old with wire fraud and money laundering conspiracy in an indictment unsealed on Oct 14.

Mr Chen and his associates, including three Singaporeans — Karen Chen Xiuling, Nigel Tang Wan Bao Nabil, and Alan Yeo Sin Huat — together with 17 Singapore-registered firms, were sanctioned by US authorities over their alleged links to a global scam operation running cryptocurrency investment schemes, or “pig-butchering” scams.

Ms Chen, who was an independent director of Singapore-listed live-streaming firm 17Live Group, voluntarily resigned on Oct 15 after being included in the US Treasury’s Specially Designated Nationals (SDN) list. Another Singapore-based firm’s executive director, Mr Li Thet, who was also allegedly linked to the global scam operation, resigned days after, citing his decision to “devote more time to his other commitments and engagements.”

MAS noted that on Oct 30, Singapore police seized a range of assets, including properties, cars, bank accounts and securities accounts, linked to the group and Mr Chen. The Straits Times reported that these assets had an estimated total value of more than S$150 million, citing information from the police on Oct 31.

So far, the US has seized about US$15 billion (S$19.62 billion) worth of Bitcoin, while UK authorities have frozen 19 properties linked to the group as part of the international crackdown.

On Tuesday (Nov 4), Hong Kong authorities also froze assets worth HK$2.75 billion (S$463 million) linked to the group, The Straits Times reported.

Mr Chee said in parliament that Singapore had rejected about 3% of the 1,300 SFO tax exemption applications over the past three years. Some applicants also chose to withdraw their submissions after being asked for more information.

He noted that fewer than 1% of Singapore SFOs had been linked to individuals convicted of money laundering within the same period.

Mr Chee said that Singapore has to remain open to bona fide family offices and genuine investors to continue growing the city-state’s financial services industry and create good jobs for Singaporeans.

He also pointed out that compared to other financial centres, many industry stakeholders already consider Singapore to have more stringent due diligence standards for high net worth clients.

“If we were to tighten further to the point where the processes become overly cumbersome, it will affect our competitiveness, deter legitimate investors and put many local jobs at risk. This is not the outcome we want for Singapore,” he added.

He further shared, “There is a Chinese saying that when we open the windows, some flies may also enter. The solution is not to shut our windows and block out sunlight and fresh air. What matters is that we act swiftly to deal with the flies that enter, while also letting in sunlight and fresh air,” noting that Singapore’s approach must be risk-proportionate, not zero-risk. /TISG

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