Singapore rejects 3% of 1,300 family office applications in past 3 years, minister says

SINGAPORE, Nov 5 (Reuters) – Singapore has blocked 3% out of 1,300 applications filed in the past three years to set up tax-exempt wealth management vehicles for rich families, an official said on Wednesday, responding to questions about family offices involved in criminal activity.

Chee Hong Tat, national development minister and deputy chair of the Monetary Authority of Singapore, also told parliament that the central bank has stopped the tax incentives given to two family offices linked to Prince Group, a multinational network accused of running vast scam centres.

Family offices are one-stop firms that manage the investments, taxation, wealth transfer and other financial matters of the super-rich.

Prince Group is tied to Cambodian businessman Chen Zhi and was sanctioned by Britain and the United States in October for running scam centres using trafficked workers to defraud victims around the world.

Singapore police seized over S$150 million ($115.90 million) in assets tied to the group, including six properties, bank accounts, securities accounts and cash, police said last week.

Singapore has benefited from strong inflows of wealth due to policies favourable to family offices and trusts, low taxes and its location as a gateway to the growing Southeast Asian markets.