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The Monetary Authority of Singapore (MAS), the country’s central bank, has announced its intention to investigate the involvement of financial institutions in a $1.8 billion money laundering scandal that recently rocked the global wealth hub. The inquiry will focus on whether these banks have taken adequate measures to mitigate money laundering and terrorism financing risks.
Last month, the scandal came to light when Singaporean law enforcement arrested and charged ten foreign individuals, including Chinese nationals, in one of the largest anti-money laundering operations. Assets valued at $1.8 billion, encompassing luxury real estate, cryptocurrencies, and high-end automobiles, were seized as part of the investigation.
The revelations have ignited concerns about how financial institutions operating in Singapore adhere to the city-state’s rigorous anti-money laundering regulations. The MAS has initiated “supervisory engagements” with these institutions to assess whether they have implemented effective controls against money laundering and terrorism financing risks.
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Singapore has experienced a substantial influx of assets in recent years, with affluent individuals from Asia and beyond establishing family and trust offices to leverage incentives offered by the city. According to MAS data, the number of single-family offices responsible for handling investments, taxation, wealth transfer, and other financial matters for high-net-worth individuals surged from 400 at the end of 2020 to 1,100 by the close of 2022.
Additionally, the latest data from MAS revealed a remarkable 16% increase in total assets under management in Singapore in 2021, reaching $5.4 trillion, compared to a global increase of 12%, totaling $112 trillion, for the same year.
The ongoing investigation by the Monetary Authority of Singapore underscores the nation’s commitment to upholding the integrity of its financial sector and ensuring compliance with anti-money laundering and counter-terrorism financing regulations.
