In a bid to strengthen its financial integrity following a money laundering scandal, Singapore's banking sector has increased its oversight of clients of Chinese descent holding foreign citizenships. The scandal, which involved assets exceeding S$2.4 billion ($1.8 billion), significantly impacted the Asian financial hub last month.
As part of this intensified scrutiny, the focus has been particularly on clients who hold investment-linked passports from other countries. These individuals, primarily of Chinese origin, are undergoing extensive review for their new account openings and transactions, as per sources familiar with the matter.
An international bank, choosing to remain unnamed due to the sensitive nature of the information, has started closing accounts of clients holding citizenships from several countries, including Cambodia, Cyprus, Turkey, and Vanuatu. This move is seen as a proactive step towards averting potential financial misconduct in the future.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.