Chinese Origin Clients With Foreign Passports Reportedly Under Scrutiny In Singapore After $1.8M Money Laundering Fiasco

In the aftermath of a substantial money laundering scandal involving S$2.4 billion ($1.8 billion) last month, banks based in Singapore have increased their vigilance towards clients of Chinese origin who possess foreign passports.

What Happened: According to sources, several financial institutions are now re-evaluating new account applications and transactions related to clients with Chinese heritage who hold investment-linked passports.

A nameless international bank is allegedly closing some accounts owned by individuals who are nationals of countries including Cambodia, Cyprus, Turkey, and Vanuatu. Several other banks in the city-state are deliberating over the acceptance of new funds from clients with similar profiles on a case-by-case basis, thereby extending the approval process and triggering further inquiries.

These new anti-money laundering strategies from Singapore are a reaction to a series of island-wide raids carried out on August 15, which resulted in the apprehension of 10 wealthy individuals of Chinese origin. These operations, led by law enforcement, led to the confiscation of over S$2.4 billion in assets, comprising cash, cryptocurrencies, and properties.

See Also: Trump Says Upon Inauguration He Will Move ‘Thousands Of Troops’ Stationed Overseas To The US-Mexico Borde

About 10 local and international banks in Singapore, including Credit Suisse, Julius Baer Group Ltd., Citigroup Inc. C, Oversea-Chinese Banking Corp., and United Overseas Bank Ltd., have been embroiled in the scandal, raising questions about their efficacy in thwarting the illicit movement of funds. These banks have reaffirmed their commitment to battling money laundering and collaborating with the authorities.

The Monetary Authority of Singapore is currently in supervisory discussions with the financial institutions linked to the potentially contaminated funds, vowing to take stringent action against those found to be in violation of rules or lacking sufficient controls to mitigate money-laundering risks.

Why It Matters: Last month, Singapore’s law enforcement seized assets worth around S$1 billion ($735 million), related to money laundering accusations, predominantly from individuals holding Chinese passports. The seizure included 94 real estate properties, 50 vehicles, and documents linked to digital assets.

This recent scandal has put a spotlight on Singapore banks’ anti-money laundering measures and raised concerns about the flow of illicit funds, leading to increased scrutiny of Chinese-origin clients.

Photo Courtesy: Wirestock Creators On Shutterstock.com

Read Next: You don't need to be an art major to rake in great profits from fine art. Seasoned curators have created a selection of promising pieces you can invest in today. Click here to check them out.


Engineered by Benzinga Neuro, Edited by Shivdeep Dhaliwal


The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.


Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsMediaGeneralAsiabankingCitibankCredit SuisseJulius Baer Groupmoney launderingOverseas Chinese Banking CorpSingaporeUnited Overseas Bank (UOB)
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!