Following a headline money laundering scandal, some banks in Singapore are reportedly increasing scrutiny against clients born in China who hold other passports.
Some banks have been reviewing the activities of clients of Chinese origin carrying investment-linked passports, according to a «Bloomberg» report citing unnamed sources, though no lender was named.
Activities being reviewed include new account openings and transactions, with at least one global bank closing accounts of clients with citizenship from countries including Cambodia, Cyprus, Turkey and Vanuatu. Other banks said they are reviewing clients with similar profiles on a case-by-case basis with a more tedious and lengthier process.
In the latest, Singapore police have disclosed that the total value of the assets seized in the headline laundering scandal has ballooned to S$2.4 billion ($1.8 billion), up from the original amount of around S$1 billion after the August 15 raids. Of the 10 Chinese-born suspects arrested and charged, many carry travel documents from Cambodia, Vanuatu, Cyprus and Dominica.
Minister of State for Home Affairs
Separately, the government is under pressure to answer questions in parliament about the scandal, including tighter controls for high risk «golden passport» jurisdictions and procedures for investment entities that receive tax incentives. Singapore’s Minister of State for Home Affairs Sun Xueling told parliament these questions will be answered in an official statement in October.
Thus far, the 10 alleged money launderers have reportedly used the following banks in some form: Julius Baer, Credit Suisse, RHB Bank, UOB, Bank of Singapore, CIMB, Citi, DBS and Deutsche Bank.
