OCBC Bank requires proof of residence from international clients in wake of money-laundering crackdown

SINGAPORE: Some international clients of OCBC, Singapore’s second-largest bank, were asked by the bank to provide proof of their Singapore residence or risk having their accounts closed. The request follows the city-state’s efforts to tackle money laundering, with authorities stepping up scrutiny of financial institutions.

According to Yahoo News, OCBC set a deadline for clients to confirm their Singapore residency with verified addresses, or risk facing service restrictions that could result in account closures, as stated in notices from the bank’s consumer financial services. A bank spokesperson confirmed the authenticity of the documents.

The spokesperson explained that international clients who plan to live, work, or study in Singapore can open accounts remotely but must show proof of their residential status.

OCBC’s move follows Singapore’s recent crackdown on money laundering. The country’s largest ever money-laundering case, which involved over S$3 billion in seized assets from more than 20 Chinese nationals who had lived in Singapore for years, has led to stricter regulations on financial transactions.

Local authorities also extended scrutiny beyond banks to include sectors such as property agents and traders of precious stones and metals.

Bloomberg News reviewed two copies of the letter in simplified Chinese with deadlines of Dec 15 and Dec 31. Another version of the letter is in English. The letters were sent to customers who had previously informed the bank that their accounts would be used for work, study, or residential purposes in Singapore.

“Once the account is closed, any financial arrangement related to this account will also be cancelled,” the letter from OCBC read in the Chinese version. /TISG

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