Singapore has revoked the tax incentives of two single family offices linked to the US-sanctioned Prince Group, a multinational network accused of being one of Asia’s largest crime syndicates.
The move is part of a widening crackdown on illicit wealth flowing through the city-state’s booming family office sector.
Chee Hong Tat, a senior minister and deputy chairman of the Monetary Authority of Singapore (MAS), confirmed the action in parliament on Wednesday.
He stated that Prince Group chairman Chen Zhi and his associates are currently under investigation by Singapore police in a major money laundering probe.
A crackdown following a billion-dollar scandal
The move follows the seizure of over S$150million($115 million) in assets tied to the Prince Group last month, including properties, bank accounts, and cash.
US authorities have sanctioned Chen and multiple associates for their alleged involvement in a criminal ring that used cryptocurrency to launder billions of dollars generated from online investment scams.
Singapore’s financial sector has been under intense scrutiny since a massive S$3 billion money laundering scandal was uncovered in 2023, the largest in the city-state’s history.
That case led to the revocation of tax incentives for six other single family offices. In response, Singapore has significantly tightened its due diligence requirements, forcing lenders to enhance checks and in some cases, close client accounts.
Balancing openness with enforcement
While cracking down on illicit funds, Singaporean officials are also trying to protect the country’s reputation as a trusted global wealth hub.
The number of family offices in the city-state has surged in recent years, growing from 700 in 2021 to over 2,000 by the end of 2024, drawn by favorable policies and low taxes.
In his parliamentary address, Chee revealed that Singapore has rejected about 3% of the 1,300 applications for single family office tax exemptions over the past three years.
He noted that family offices linked to money laundering represent “a very small proportion of the overall sector, at less than 1%.”
He defended the country’s approach, stating that Singapore must remain open to genuine investors while dealing decisively with illicit actors.
“There is a Chinese saying that when we open the windows, some flies may also enter,” he said.
What matters is that we act swiftly to deal with the flies that enter, while also letting in sunlight and fresh air.
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