According to Financial Times News, global accounting firm BDO has quit its role supporting Singapore-based family office DW Capital Holdings after US and UK authorities imposed sanctions last month linking it to a massive international scam empire. The US Treasury department sanctioned DW Capital as part of actions against 146 individuals and companies tied to Cambodia’s Prince Group, which prosecutors describe as a “transnational criminal empire” operating forced-labor scam compounds. Federal authorities seized $15 billion worth of bitcoin connected to Prince Group and charged its founder Chen Zhi with wire fraud and money laundering conspiracy. Two BDO employees, including the head of company secretarial services in Singapore, resigned as company secretaries for DW Capital after the sanctions were announced. Singapore police subsequently raided entities linked to Prince Group, seizing S$150 million in assets plus luxury items including a yacht and 11 cars.
The Due Diligence Question
Here’s the thing that really stands out: BDO claims they conducted due diligence on Chen Zhi back in 2018 when they helped incorporate DW Capital and continued screening him afterward. They say they “did not identify anything suspicious.” But now we’re looking at what US authorities call a sprawling criminal enterprise that allegedly forced trafficked workers to steal billions from victims worldwide. Either this operation was incredibly sophisticated at hiding its activities, or someone’s due diligence processes need serious re-examination. BDO serves smaller clients than the Big Four firms, which probably means they’re dealing with riskier portfolios. But missing what authorities now describe as a massive international crime syndicate? That’s quite the oversight.
<h2 id="singapore-connection”>Singapore’s Awkward Position
This situation puts Singapore in a pretty uncomfortable spot. DW Capital actually claimed on its now-removed website that it was a beneficiary of tax incentives from the Monetary Authority of Singapore. The MAS says they’re investigating but won’t confirm whether those tax benefits were actually granted. Meanwhile, seventeen companies and three individuals based in Singapore made the US sanctions list. So we’ve got a family office potentially receiving government incentives while allegedly being part of an international money laundering operation that bought high-end property in New York and London. Not exactly the clean financial hub image Singapore likes to project. The timing is particularly interesting given that Singapore’s parliament just passed a law making caning mandatory for scammers. Talk about sending a message.
The Scale of This Thing
Let’s step back and look at the numbers here because they’re staggering. $15 billion in bitcoin seized. $1 trillion international scam industry centered in Southeast Asia. Scam compounds staffed by trafficked workers. This isn’t some small-time operation—it’s industrial-scale fraud. And the money flowed through entities in Asia and offshore financial centers before ending up in luxury real estate and assets. BDO says their anti-money laundering program “enabled us to identify the company as an unsuitable client” after the sanctions were public. But that’s like closing the barn door after the horse has not only escaped but bought a yacht and eleven cars. The real question is how many other service providers are out there supporting clients they shouldn’t be? This case suggests the problem might be bigger than anyone wants to admit.
