Singapore steps up scrutiny of family offices and hedge funds

Authorities demanding more data, ramping up closures of dormant firms in wake of scandals

The Singapore authorities are demanding more information from family offices and hedge funds while stepping up closures of dormant firms after a string of scandals highlighted cracks in the financial hub’s oversight.

The Government’s push to tighten various investment regimes has accelerated since March, with agencies setting out additional requirements that must be met in the coming months and ramping up the removal of inactive corporate entities, according to people familiar with the matter.

Family offices that have been granted tax exemptions were given new forms asking for greater details in May and told to submit the information by the end of June. In March, the Monetary Authority of Singapore (MAS) confirmed it would repeal a licensing regime used by hedge funds with assets of up to $250 million by Aug 1 and migrate them to one with stricter reporting requirements.

Singapore is stepping up scrutiny of financial institutions after a series of criminal cases highlighted the challenges of policing the influx of foreign wealth into the city state. At least one of the accused in a recent $3 billion money laundering case was linked to family offices that were granted tax exemptions.