Six single-family office (SFO) funds in Singapore, linked to a $3 billion money laundering case, were granted tax benefits, according to Deputy Prime Minister Gan Kim Yong. However, these benefits will not be reclaimed, as the value of the forfeited assets from those involved surpasses the tax benefits received.
In December 2023, Singapore’s financial regulator tightened its tax incentive process, enhancing due diligence and screening for money laundering risks. On July 2, Deputy Prime Minister Gan, responding to a query in Parliament, confirmed that six SFOs connected to the convicted foreigners or their spouses received tax benefits. He clarified that tax benefits awarded before the charges or convictions will not be clawed back unless there were breaches of incentive conditions.
Since the arrests in August 2023, over $1 billion in assets linked to the case were seized, with $944 million forfeited to the state. The remaining assets, tied to 17 fugitives, are still under investigation. Previously, the Monetary Authority of Singapore (MAS) stated that SFOs do not need to be registered as they do not manage third-party funds.
In October 2023, Minister Alvin Tan announced a review of MAS’s internal processes for SFO tax incentives, following the case revelations. As of March 6, there were approximately 1,400 SFOs awarded tax incentives in Singapore, managing around $90 billion in assets in 2021.
