Six Singapore-based SFOs linked to S$3B money laundering scandal

SINGAPORE: Singapore is grappling with its largest-ever money laundering scandal, involving more than S$3 billion laundered through its financial institutions.

It was found that six single-family offices (SFOs) were connected to the scandal involving individuals or their spouses, raising concerns about regulatory responses and oversight in the financial sector, Wealth Briefing Asia reports.

The case, described as Singapore’s largest-ever money laundering scandal, revolves around funds funnelled by criminals from China through at least 16 financial entities within the country from online gambling.

In a recent parliamentary statement, Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry, said:

“A total of six single family office (SFO) funds which were awarded SFO [single-family office] tax incentives have been identified to be linked to individuals who have been convicted in relation to the money laundering case or their spouses.” 

However, specific SFO names were not disclosed.

“Tax benefits were withdrawn starting from the financial year the owners of these SFO funds or their spouses were charged or convicted,” Mr Gan stated.

However, he clarified that any tax advantages granted before these legal actions would not be reclaimed unless the tax incentive conditions were breached.

In response to enforcement measures, assets linked to convicted individuals have been forfeited.

The minister noted that the assets forfeited from convicted individuals linked to SFO funds, which received tax incentives, far exceed the tax benefits given to those funds.

Major financial institutions such as Citigroup and DBS are enhancing scrutiny of high-net-worth clients.

Private bankers are also undergoing additional training to better detect methods used by criminals to obscure their backgrounds and origins of funds. /TISG

Read also: Money laundering events in Singapore rose by 79%