Singapore banks scrutinize Chinese-born clients amidst money laundering probe

Singapore froze and seized assets worth $1.8B since last month in a money laundering probe targeted at cryptocurrencies, properties, and cash.

Bloomberg’s September 21 report shows Banks are expanding their investigations to Chinese-born customers with other passports, focusing on clients holding crypto or participating in money laundering activities.

Singapore extends money laundering investigations to Chinese-born customers

Singapore banks have shifted attention to Chinese-born customers amidst intensified money laundering investigations. Financial institutions are reviewing all new account registrations and transactions from players of Chinese origin.

Banks are assessing (case-by-case) and restricting transactions from users with citizenship from other nations. Meanwhile, some are closing accounts of customers from Vanuatu, Dominica, Cyprus, Cambodia, and Turkey.

The ongoing money laundering clampdown saw Singapore arresting and charging ten wealthy Chinese investors for breaching the anti-money laundering policy.

Further, lawmakers have seized $1.8 billion in cash, properties, and digital assets since last month. Authorities alleges that these individuals acquired Singaporean citizenship to operate illicit gambling businesses.

Singapore’s crypto regulation

Singapore remains at the forefront of crypto regulation as it cements its spot as a global hub for digital currencies. Nonetheless, the nation has ensured intensified investigation of the cryptocurrency sector. Regulators are planning to introduce crypto payments for retail investors.

In August, the Monetary Authority of Singapore introduced a revolutionary regulatory framework to bolster the stability of the country’s licensed stablecoins. Also, the regulators have issued 190 Major Payment Institution (MPI) certificates, with eleven directed to Digital Payment Token firms.