Fast cars, gold bars and more luxury property than you can imagine. These are just some of seizures from a coordinated raid by 400 members of the Singapore police, in September 2023.
A total of 10 people were arrested, and $2.8 billion in assets was seized.
While the crackdown sends a clear signal that money laundering will not be tolerated in Singapore, it may be the stone that sends ripples through the legislation that has made Singapore the economic success that it is.
Singapore, Asia’s financial hub
With a carefully crafted regulatory system to simplify business, Singapore is often lauded for establishing such a successful financial system, attracting business and wealth to the small island nation from all over the world.
With so much capital rushing into the economy so readily, ensuring the legitimacy of it requires a layer of regulations that can inhibit this ease of business. Instead of restrictions, Singapore relies on detailed investigations and financial crime units to track down illegal operations. It turns out this may not be enough.
Between 2020 and 2022, Singapore arrested 240 people for money laundering. With the seizure of $1.2 billion in assets, it exposed the volume of laundering through Singapore.
As part of the police work looking into these operations, careful examination revealed the number of directorships held by some Singaporeans, with one person found to be local director to 980 different companies. He was jailed for allowing over $7 Million to be laundered through his companies (source).
New restrictions expected
In an effort to curb these illicit operations, Singapore is likely to see new restrictions in 2024. In an attempt to force directors to pay greater attention to the companies they are representing, these restrictions may limit the number of companies a local director can oversee.
In addition to limits, it’s reasonable to expect harsher penalties for those who enable money laundering to occur. Either with intent or nonchalance.
These new restrictions will greatly impact foreign businesses that aren’t prepared. Registering a company is expected to become more difficult, forcing greater involvement from its local director, likely meaning an increase in the service fees.
For those who will be impacted by these tighter restrictions, expect a scramble to find a director you can trust — that’s where we come in!
How to avoid legislative ramifications
We provide bespoke consultation for companies and individuals, with unbeatable expertise in local regulations, international business, fintech and startups. Combined with our support for corporate governance and local directorship service, we offer a suite of expert services that is unmatched for your business.
If you want to chat further about how we can support you — reach out for a free chat.