OCBC Bank tightens rules for international clients

OCBC Bank in Singapore now requires some international clients to provide proof of residence in the city-state or face account restrictions and potential closures. The new rules are part of Singapore’s efforts to combat money laundering following a major scandal involving billions of dollars in illicit assets.

The bank has set compliance deadlines, with notices issued in English and simplified Chinese setting dates of Dec. 15 and Dec. 31 for affected customers. The letters were sent to clients who previously declared that their accounts would be used for work, study or residential purposes in Singapore. Clients must confirm their Singapore residential address through verified documentation to continue using their accounts.

OCBC clarified that new international customers intending to live, work or study in Singapore can open accounts remotely, but they must provide proof of their residential status during the process.

This step follows Singapore’s largest-ever money-laundering case, which resulted in the seizure of S$3 billion in assets from over 20 individuals, primarily Chinese nationals. Many of those implicated had lived in Singapore for years, prompting the government to tighten its financial regulations.

The city-state is now broadening oversight beyond banks, targeting other sectors such as real estate and precious metals trading to curb illicit financial flows. According to the notices, affected OCBC clients risk having all financial arrangements tied to their accounts canceled if they fail to comply with the new rules.