MAS reduces wait times for family offices

The Monetary Authority of Singapore (MAS) announced earlier this month that setting up a family office in Singapore will now be faster and tax incentives will be available in just three months, compared to the previous 12-month waiting period.

This policy update aligns with Singapore’s ongoing streamlining efforts while maintaining strict financial controls, following a $3 billion (US$2.34 billion) money laundering scandal in 2023, its largest to date.

National Development Minister and MAS Deputy Chairman Chee Hong Tat said the regulator also works with private banks to shorten account opening times for high-net-worth clients.

Rising compliance delays raised concerns among investors as banks increased due diligence and even closed some accounts following the scandal. In response, MAS intends to provide clearer guidance for banks and relationship managers to help reduce onboarding uncertainty and delays.

“We want to maintain high standards and at the same time, we also want to make it convenient and business-ready for our clients,” Chee said at a media briefing hosted by DBS Group Holdings Ltd.

Earlier this month, MAS imposed S$27.5 million in fines on nine financial institutions, including local branches of UBS, Citigroup, Julius Baer and UOB, for compliance lapses linked to the 2023 case. The regulator also revoked tax incentives for six single-family offices tied to individuals involved in the scandal.

Despite increased scrutiny, interest in Singapore stays strong. Family offices rose to 2,000 by early 2024, up from 1,650 in late 2023, highlighting the city-state’s ongoing appeal to global capital.

Chee emphasized that Singapore follows a “risk-proportionate approach,” seeking to balance regulatory integrity with business competitiveness.