Singapore has revoked tax breaks granted to two family offices linked to Prince Group, a multinational network controlled by Cambodian tycoon Chen Zhi.
Chen was indicted in the US last month over alleged wire fraud and money laundering, and for directing the operations of forced labour scams globally from Cambodia.
The Monetary Authority of Singapore (MAS) as well as counterparts from Hong Kong, Taiwan, the US and the UK have also since seized assets worth over US$15 billion, including cash, cars and bitcoin, from Chen.
Chee Hong Tat, Singapore’s national development minister and deputy chairman of MAS, announced the cancellation of tax breaks given to Chen’s family offices at a parliamentary session on November 5.
He was responding to questions from lawmakers on Singapore’s tax incentive scheme for family offices.
According to Chee, family offices linked to individuals convicted of money laundering offences represent a “very small proportion” of less than 1% of the sector in the city state.
He says Singapore rejected around 3% out of 1,300 family office applications over the past three years.
Chee says all major financial centres have to remain vigilant and work together to combat financial crimes. “We have to remain open to bona fide family offices and genuine investors, to continue growing our financial services industry and creating good jobs for our people.”
Singapore had more than 2,000 family offices at the end of last year, up from 700 in 2021.
