The fight against money laundering in the cryptocurrency space continues in Singapore, with local authorities taking significant steps to probe suspected channels. In recent developments, Singaporean banks have extended their ongoing investigations to clients of Chinese origin. With a firm stance against illegal activities and money laundering, banks have frozen and seized a total of $1.8 million worth of crypto assets, cash, and properties since August, underscoring their commitment to maintain the integrity of the financial system.

Singaporean Banks Implement Stringent Scrutiny on Overseas Clients’ Accounts:
In their commitment to curb money laundering, banks in Singapore have intensified scrutiny on new account openings and transactions involving Chinese-born clients. The objective is to identify individuals still involved in holding digital currencies or participating in money laundering activities. Simultaneously, one of the banks plans to close accounts belonging to clients from Turkey, Cyprus, Cambodia, Dominica, and Vanuatu. Other banks have also initiated a case-by-case review of accounts owned by citizens from different countries, blocking funds from suspicious customers.

Several High-Profile Arrests Shake Singapore’s Financial Hub:
As a result of these investigations, ten affluent Chinese individuals have been arrested and charged with various money laundering violations. The Singaporean police have seized their properties, cash, and cryptocurrencies. These individuals, believed to be residing in Singapore, are allegedly involved in operating illegal gambling businesses within the country. The involvement of prominent banks such as Julius Baer Group, Credit Suisse, Citigroup Inc., United Overseas Bank, and Overseas-Chinese Banking has cast a shadow on Singapore’s reputation as a global financial hub.

Regulatory Guidelines and Risk Factors:
A spokesperson from DBS Group Holdings, a Singapore-based stock exchange, emphasized that banks must adhere to Singapore’s regulatory guidelines, which necessitate the implementation of robust anti-money laundering measures. However, the guidelines do not require banks to deny services based on a client’s specific origin or passport. The spokesperson emphasized that suspicious activities or other risk triggers should be the basis for enforcement action.

Singapore’s Stringent Crypto Scrutiny:
Singapore has taken a proactive stance on crypto regulation throughout this year. In April, the nation’s central bank collaborated with the police to help banks establish standardized vetting approaches for opening crypto accounts. The Monetary Authority of Singapore (MAS) further imposed a ban on lending and staking of cryptocurrencies by exchanges in July, citing customer fund safety concerns as the main reason behind this decision.

Setting Guidelines for Crypto Assets:
Despite maintaining stringent scrutiny, Singapore has also made progress in establishing comprehensive cryptocurrency guidelines. To participate in its interbank payment system, Fast and Secure Transfers (FAST), MAS has issued 190 Major Payment Institution licenses to various firms. Among the recipients are eleven cryptocurrency payment firms, including Ripple. Notably, Ripple’s Singaporean arm, Ripple Markets APAC Pte Ltd, secured in-principle approval for the Major Payment Institution license from MAS on June 22. It is worth mentioning that MAS only awards licenses to crypto payment firms with robust anti-money laundering measures in place.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.