Six single-family office funds linked to S$3 billion money laundering case given tax incentives

SIX single-family office (SFO) funds that had been awarded tax incentives by the government have been linked to individuals convicted in Singapore’s biggest money laundering case, or their spouses. The figure was shared by Deputy Prime Minister Gan Kim Yong in a written response to a parliamentary question posed by Nominated Member of Parliament Usha Chandradas, on behalf of the prime minister. 

The tax benefits were withdrawn starting from the financial year that the owners of these SFO funds or their spouses were charged or convicted, said Gan. But tax benefits accorded prior to that will not be clawed back, unless there were breaches to the conditions of the tax incentive awards back then, he added. 

Gan also highlighted that the convicted individuals have forfeited assets as part of enforcement actions in this case. 

“The total value of assets forfeited from convicted individuals with links to SFO funds that were awarded tax incentives far exceeds any tax benefits accorded to the SFO funds,” he noted. 

Last August, the Singapore police arrested and charged 10 people in a money laundering probe that saw more than S$3 billion in assets seized. These include luxury properties, gold bars, designer handbags, cash, crypto assets and cars. 

Although the last of the 10 foreign nationals convicted for their involvement in the case has been sentenced, more than S$2 billion in assets that were frozen or seized remain in limbo. In response to queries, the police said these assets belong to 17 other foreigners still under investigation in relation to the case.