Singapore is a victim of the new bank secrecy rules?

04.06.2013

One of the fast growing sectors of the Singaporean economy is banking. In view of rather large size of this sector, losses in case of some negative circumstances will be enormous. We remember the latest events in Switzerland, that’s why there is something to fear of.

In Switzerland began the discussion about the opportunity to control the client information in local banks by United States. This opportunity became a part of special measures, which have the target to combat tax evasion. It is obvious that such measures are trench on bank secrecy. In this regard, there are some suspicions that Singapore will be the next link in the chain.

Private banks in Singapore are concerned about how the current situation may affect their competitiveness. Beginning July 1, all banks that are suspected in contribution to tax evasion, will be subject to such sanctions as deprivation of banking licenses, financial and criminal responsibility. In order to protect itself, Singapore began to open accounts in Dubai and Hong Kong, in other words, they began transfer their assets to other jurisdictions.

Based on:http://www.dailypressdot.com/singapores-economy-might-collapse-due-to-new-bank-secrecy-rules/759297/

Expert’s opinion

Singaporean banks are very interesting for entrepreneurs, especially in dealing with south-east countries. After “Cypriot spring” everybody paid attention to Asian market. What do they have? May be it will be better to transfer everything to Singapore and not to worry? Expensive and far away?

But we can’t say that that Singaporean banks may be an alternative to the Cypriot banks. Moreover, this is a big problem to open an account for offshore company in any Singapore bank.

Banks require personal presence, interviewing and carefully provided information about business, corporate structure and the beneficiary.

I don’t think that now they have something to fear. With such serious control of each client, we may suppose that everything will be okay.

Irina Lomakina ( Director of Moscow office of “Honest&Bright” Company)