Reported by Low De Wei, Chanyaporn Chanjaroen, and Andrea Tan

Singapore banks are increasing scrutiny of some Chinese-born clients with other citizenships, following last month’s crackdown on money laundering involving more than S$2.4 billion ($1.8 billion) worth of assets that has rattled the Asian financial hub.

Some lenders have been reviewing new account openings and transactions with clients of Chinese origin carrying investment-linked passports, people with knowledge of the matter said. At least one international bank is closing some accounts of clients with citizenship from countries including Cambodia, Cyprus, Turkey and Vanuatu, one of the people said, asking not to be identified as the information isn’t public.

Other lenders in the city-state have started to evaluate whether to take fresh funds from clients with similar profiles on a case-by-case basis, said the people. The process is taking longer and more questions are being asked, the people added.

The moves, part of an extension of Singapore’s existing anti-money laundering framework, are happening after the Aug. 15 island-wide raids that saw 10 wealthy people of Chinese origin arrested and charged. Police investigations unveiled more than S$2.4 billion worth of assets that have been seized so far, including cash, cryptocurrencies and properties.

That includes bank accounts with a value of more than S$1.13 billion, cryptocurrencies of over S$38 million, as well as luxury watches, bags, jewelry and gold bars, according to a police statement on Wednesday. Prohibition of disposal orders were also issued against more than 110 properties and 62 vehicles worth more than S$1.24 billion, the statement said.

Read full report: https://www.bloomberg.com/news/articles/2023-09-21/singapore-banks-tighten-scrutiny-of-chinese-with-other-passports#xj4y7vzkg