Singapore’s Money Laundering Crackdown Aftermath Chinese Family Offices on the Decline

Last updated on April 30th, 2024 at 03:00 pm

With the recent flurry of money laundering crackdowns happening in the country of Singapore, it appears that Chinese family offices are having an observable decline within the city-state of the country. 

One is cased to suspect: do these Chinese offices have something to hide?

How did the Money Laundering investigations begin?

These money laundering investigations all began after the Singaporean police had done a rather comprehensive intelligence probe way back in the early months of 2022 after they had received several tip-offs regarding various suspicious activities being done. 

This probe was beyond a success; it had led to the arrest of not only 1 but 10 foreigners in simultaneous raids from across the country on August 15, 2023. One intriguing detail is that the value of the assets seized or frozen has accumulated to over a whopping S$2.8 billion (US$2.03 billion), making the probe one of the largest anti-money laundering operations in the world and the history of mankind. 

The Impact on Chinese Family Offices

Since then, the influx of highly-valued family offices handling money of Chinese origin has experienced a noticeable decline; the causes of this, as suggested by experts, are tighter checks for new applicants as well as elevated property prices. However, higher stamp duty in Singapore also plays an important role in this process. 

As an answer to the quelling issue of the multibillion-dollar money laundering scandal, the country of Singapore has implemented a rather stringent and more rigorous requirement process for assets under management; these measures are not only placed to prevent illicit financial activities, but it puts a high emphasis on maintaining the integrity of Singapore’s financial system as a whole. 

Keep Reading

Economic Consequences

The decline of these Chinese Family Offices has a large impact of course in the economy of Singapore; broader economic implications are set out to be explored as these family offices are considered a significant source of investment and contribute generously to the economy by not just providing jobs, but piquing the cycle of business hubs across the city-state. Ultimately, this slowdown may affect the country’s appeal as a wealth management hub entirely.

While the deceleration of these Chinese family office in Singapore has struck its economy, some experts anticipate that in the coming years, assuming that there are no major or foundational changes to tax incentive schemes, Singapore’s economy will be right back on track with a cleaner slate—with a proper qualifying criteria for family offices on its belt. 

Katherine S

1/4 German, 3/4 Malaysian. I write, follow and monitor closely political news happening in Malaysia, and other happening news in the ASEAN region. Newswriter for the best ASEAN news website - The Asian Affairs.

Recent Posts

China and UAE Celebrate 40 Years of Diplomatic Relations: All the Sectors for Partnership

Celebrating 40 years of diplomatic ties, China and the United Arab Emirates (UAE) are poised to fortify an alliance that…

November 2, 2024

What’s in Store for Squid Game Season 2: New Twists, International Adaptations, and a Bold Return to the Games

Fans of the worldwide sensation Squid Game have much to look forward to this December as the show's producer, Hwang…

November 2, 2024

TWICE Joins Coldplay’s ‘Music of the Spheres’ Tour for a Seoul Spectacle in 2025

Especially when it's the internationally known British rock band Coldplay linking up with K-pop phenomenon TWICE, few events match the…

November 2, 2024

China Caught in the Crossfire: Tensions Rise as North Korea and Russia Strengthen Alliance

Tucked on a 12-story structure in northeast China, visitors flock to get a rare view of the junction of their…

November 2, 2024

Could Westeros Dragons Soon Soar into the Big Screen? ‘Game of Thrones’ Film Reportedly in Early Development

HBO's Game of Thrones has created a void in the fantasy world of television that no other show has quite…

November 1, 2024

Preparing for U.S. Election Impact: Sen. Imee Marcos Urges Self-Reliant Defense Amid Uncertain Times

Head of the Senate Committee on Foreign Relations, Senator Imee Marcos underlined the need of the Philippines getting ready for…

November 1, 2024

This website uses cookies.

Read More