Singapore cancels tax incentives for two family offices with links to Cambodia’s Prince Group

Mr Chee said that Singapore police investigations into Chen and his associates predated his US indictment. On Oct 30, enforcement operations resulted in the seizure of six properties and various financial assets worth over S$150 million, with prohibition of disposal orders issued against them.

The minister was responding to parliamentary questions from MP Kenneth Tiong (WP-Aljunied) on whether individuals sanctioned by the US for alleged transnational criminal activities or convicted in Singapore’s largest money laundering case had operated tax-exempt family offices locally.

Mr Tiong also asked about due diligence checks done by MAS before granting tax incentives, and what systemic reforms have been implemented to prevent criminal networks from exploiting Singapore’s family office regime.

In his response to Mr Tiong and questions filed by other MPs, Mr Chee said that SFOs linked to individuals convicted of money laundering offences represent a “very small proportion of the overall sector” at “less than 1 per cent”.

He also elaborated on existing measures in place, and reiterated the need for Singapore to “remain open to bona fide family office and genuine investors” to keep growing its financial services industry and create good jobs.

For example, as part of the tax incentive application process, individuals and entities are screened against databases to check that there are no reports of their involvement in illegal activities.

The SFO is also required to open and maintain an account with a MAS-licensed bank and be subject to due diligence and ongoing monitoring checks.