ScandAsia February 2013 | Page 15

Singapore the private banking hub of choice for international investors By Sine Neuchs Thomsen S ingapore is fast moving up the ladder as one of the world’s most attractive venues for private banking, according to Fredrik Lager, General Manager, Private Banking, Skandinaviska Enskilda Banken S.A. “Switzerland continues to hold on to the number one spot as the world’s largest private banking hub, but Singapore is catching up quickly,” he says. “Over the past 5-10 years, we have seen a massive shift of private banking business from the more traditional centres such as Geneva, Zurich, Luxembourg and Liechtenstein,” he continues. The rapid growth in wealth among Asian investors, both local and foreign, has created the need for an enhanced and local private banking offering. The 158-year old, tradition-bound Swedish bank was the first Nordic bank to obtain a fully fledged private banking licence in Singapore in order to better serve its clients in the Asia-Pacific region. “SEB realised early on that SouthEast Asia would become an extremely important market and with its strategically important location, Singapore was the obvious choice for establishment,” Fredrik Lager says. Strict regulation and transparency “In Singapore the regulations and the laws are well suited for private banking. It is considered a safe place to have your money,” he said, adding that when so much wealth is moving towards Asia, the regulatory authorities in Singapore are of course keen on making sure that money, which comes to Singapore, is money which is declared in the clients’ home countries. “Singapore introduced in July 2013 a new law whereby tax evasion is considered a money laundering offence. So if a bank finds out that a client is not compliant with the new law, the bank has a duty to directly report that client to the financial authorities,” he said. Benefits of living in Thailand SEB Private Banking in Singapore covers the entire Asia Pacific region, from China and South Korea in the north to Australia in the south, and from Japan Fredrik Lager General Manager, Private Banking, Skandinaviska Enskilda Banken S.A. in the east to India in the west. In the midst of this vast geographical area lies Thailand, which has always been one of SEB’s core markets. “Thailand has a very specific tax regime insofar as you don’t pay tax on the gains from foreign capital income and investments i