SINGAPORE: Two single family offices (SFOs) that received tax incentives in Singapore have been identified as having links to Cambodia’s Prince Holding Group and its founder Chen Zhi, National Development Minister Chee Hong Tat disclosed in parliament on Wednesday (Nov 5).

The Monetary Authority of Singapore (MAS) has revoked the incentives for both entities, said Mr Chee, who is also deputy chairman of MAS. He declined to provide further details, citing ongoing investigations into Chen and his associates.

Chen, 38, was recently charged in the United States for allegedly orchestrating a massive cryptocurrency scam that involved forced labour camps in Cambodia. Three Singaporeans and 17 Singapore-registered entities have been sanctioned for their alleged connections to the criminal enterprise.

A Bloomberg report said Chen had set up a family office, DW Capital Holdings, in Singapore in 2018, which claimed to manage more than S$60 million (US$45.9 million) of assets.

Mr Chee said that Singapore police investigations into Chen and his associates predated his US indictment. On Oct 30, enforcement operations resulted in the seizure of six properties and various financial assets worth over S$150 million, with prohibition of disposal orders issued against them.

The minister was responding to parliamentary questions from MP Kenneth Tiong (WP-Aljunied) on whether individuals sanctioned by the US for alleged transnational criminal activities or convicted in Singapore’s largest money laundering case had operated tax-exempt family offices locally.

Mr Tiong also asked about due diligence checks done by MAS before granting tax incentives, and what systemic reforms have been implemented to prevent criminal networks from exploiting Singapore's family office regime.

In his response to Mr Tiong and questions filed by other MPs, Mr Chee said that SFOs linked to individuals convicted of money laundering offences represent a “very small proportion of the overall sector” at “less than 1 per cent”.

He also elaborated on existing measures in place, and reiterated the need for Singapore to “remain open to bona fide family...