Six single family office funds linked to a S$3 billion (US$2.2 billion) money laundering case in Singapore have received tax incentives from the Monetary Authority of Singapore (MAS).

The tax benefits were withdrawn starting from the financial year the owners of these family office funds or their spouses were charged or convicted, said Deputy Prime Minister and MAS chair Gan Kim Yong in a written parliamentary reply. The benefits accorded prior to that won’t be clawed back, unless there were breaches of the tax incentive conditions then, Gan added.

Singapore has been ramping up scrutiny of family offices and hedge funds, while stepping up closures of dormant firms. On Tuesday, the government introduced new legislation designed to tighten gaps around policing illicit money flows after a high-profile case that rocked the Asian financial hub. 

The total value of assets forfeited from convicted individuals with links to the single family office funds “far exceeds” any tax benefits accorded, Gan said.

  - Bloomberg