Singapore banks strengthen scrutiny of transactions by Chinese clients holding "investment-related" passports

ChainCatcher news, according to Singapore's Business Times, following last month's crackdown on money laundering activities involving assets worth over 2.4 billion Singapore dollars, banks in Singapore are strengthening their scrutiny of clients born in China but holding other nationalities.

Informed sources indicate that some banks have been reviewing new account openings and transactions involving Chinese clients with investment-related passports. At least one international bank is closing accounts of clients who hold citizenship from countries such as Cambodia, Cyprus, Turkey, and Vanuatu. Other banks in Singapore have begun to assess whether to accept new funds from clients with similar backgrounds on a case-by-case basis, a process that takes longer.

It is reported that at least 10 local and international banks in Singapore are involved in this high-profile money laundering scandal, raising concerns about their efficiency in combating illegal profits. Singaporean Members of Parliament raised over 30 questions in Parliament this week, covering issues such as the rigor of their review processes, suspicious transaction reporting, and the impact on Singapore's reputation as a wealth center.