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SINGAPORE – The police here were already investigating Cambodian tycoon Chen Zhi and his associates prior to his indictment in the US, said National Development Minister Chee Hong Tat on Nov 5.
Mr Chee, who is also deputy chairman of the Monetary Authority of Singapore (MAS), was responding to questions in Parliament about actions taken against Chen, who founded the
now-sanctioned Prince Group
.
China-born Chen, 38, was indicted in the US on Oct 8 over alleged wire fraud and money laundering conspiracy, and for allegedly directing the operation of forced-labour scam compounds in Cambodia.
The charges were unsealed and made publicly known on Oct 14, with both the US and UK announcing sanctions against 146 entities, including Chen and Prince Group, on the same day.
Chen’s whereabouts are currently unknown, but the police have said he is not in Singapore.
Mr Chee said MAS has so far identified two single-family offices linked to Chen and his associates that had been granted tax incentives.
MAS has since ceased the tax incentives and investigations are ongoing.
Mr Kenneth Tiong (Aljunied GRC) had asked about Singapore’s family office regime and what due diligence checks MAS does before granting tax incentives, in relation to the sanctioned entities.
Mr Chee responded to his question and similar questions from other MPs on Nov 5, saying that Singapore upholds high standards in its financial system but there will still be some cases that slip through.
He said Singapore takes a risk-proportionate, and not zero-risk, approach.
Said Mr Chee: “There is a Chinese saying that when we open the windows, some flies may also enter.
