Singapore Scrutinizes Family Offices in Wake of Money Laundering Scandal

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Monetary Authority of Singapore. Photo: CCTV

The Singapore government is strengthening its scrutiny over single family offices (SFOs) in efforts to prevent fraud, after a billion-dollar money laundering case cracked last year exposed regulatory loopholes in the city-state’s financial industry.

SFOs that have obtained tax-exempt status in Singapore received notices last month requiring them to submit detailed information on beneficial owners, senior management, investment portfolios and business activities by the end of June, Caixin has learned.

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The Singapore government has intensified scrutiny on Single Family Offices (SFOs) following a billion-dollar money laundering case, requiring detailed disclosures from tax-exempt SFOs by June.
New regulations mandate that SFOs invest at least 10% or S$10 million of their assets locally, amid competition with Hong Kong which offers faster establishment times and favorable tax regimes.
Singapore's Monetary Authority has enhanced due diligence and formed a task force for money laundering risk screenings to strengthen regulatory compliance.

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Who’s Who

Franklin Medici Family Office: Franklin Medici Family Office's senior partner, Ye Hongyu, informed Caixin about the new regulations requiring family offices to invest at least 10% or S$10 million ($7.38 million) of their total managed assets in local investments in Singapore, such as unlisted companies, private equity, and qualifying debt securities.

Deloitte: Deloitte, in collaboration with FamilyOfficeHK, published research in March showing that Hong Kong has more than 2,700 Single Family Offices (SFOs).

Aggregate Asset Management: Aggregate Asset Management is represented by Kevin Tok, an executive director, who commented on Singapore’s increasingly stringent compliance regulations for single family offices. Tok noted that the tougher regulations will help screen out families exploiting tax incentives and instead attract those who genuinely wish to positively contribute to Singapore's economy.

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What Happened When

August 2023：: Singapore police busted a record money laundering case, seizing more than S$2.8 billion in assets and arresting 10 foreign nationals of Chinese origin.

As of the end of 2023：: There were around 1,400 SFOs that have been awarded tax incentives in Singapore, according to the Monetary Authority of Singapore (MAS).

Last month：: SFOs that have obtained tax-exempt status in Singapore received notices requiring them to submit detailed information by the end of June 2024.

March 2024：: Research published by Deloitte in collaboration with FamilyOfficeHK showed Hong Kong has more than 2,700 SFOs.

End of June 2024：: Deadline for SFOs to submit detailed information on beneficial owners, senior management, investment portfolios, and business activities.

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