The biggest money-laundering scandal in Singapore's history has forced banks to tighten scrutiny of their customers.
Today, the waiting period of opening a private banking account in Singapore has become longer than before. It was only less than one month but it now may take three to four months, and some existing accounts are being closed.
One of the reasons for the longer process is banks are going through clients' records, «to make sure they have no business with the people or entities on the MAS’s list,» said a director at a wealth manager.
Focused Countries
It is not an official rule change, according to the «Financial Times», citing people from wealth advisers, asset managers and private bankers. However, Singapore authorities are tightening due diligence across the financial sector after the scandal exposed in August 2023.
Although the case involves a lot of customers from China, the country is not the only one the banks are focusing on. Vanuatu, Turkey, St Kitts and Nevis, Dominica, Cambodia as well as Cyprus are among them too.
Getting Red-Flagged
If people hold passports from these countries, «they are getting red-flagged», said a private banking adviser.
In August, the Monetary Authority of Singapore (MAS) sent a note to all financial institutions. The authority instructed them to scrutinize dealings with the suspects as well as individuals and companies linked to them, two banking executives said.
