Singapore has seized and frozen $1.8 billion worth of assets including cash, cryptocurrencies, and properties in its money laundering investigations since last month. Banks are now expanding money laundering probe to Chinese-born clients with other citizenships, expanding scrutiny over clients still holding crypto or involved in money laundering.
Banks are reviewing new account openings and transactions with clients of Chinese origin. In fact, a bank is closing some accounts of clients from countries including Cambodia, Cyprus, Turkey, Dominica, and Vanuatu.
Meanwhile, other banks have started evaluating clients having citizenship from other countries, restricting funds from them.
Singapore’s money laundering investigations saw 10 wealthy Chinese persons arrested and charged for violating anti-money laundering law. Police investigations revealed $1.8 billion worth of assets including cash, crypto, and properties seized so far. While they reside in Singapore, many are alleged to running illegal gambling businesses.
The high-profile scandal and arrests under the money laundering probe have impacted Singapore’s reputation as a wealth hub. Credit Suisse, Julius Baer Group, Citigroup Inc., Oversea-Chinese Banking, and United Overseas Bank have such clients. DBS Group Holdings spokesperson said:
The Monetary Authority of Singapore is having supervisory engagements with banks and other financial firms identified with the potentially tainted funds.