Singapore Expands Investigation into Prince Group Money Laundering Case: SRS Auto Holdings Raided, Connections Continue to Unfold

Singapore police have recently expanded their investigation into “Prince Holding Group Chairman Chen Zhi and his affiliated companies” for suspected cross-border money laundering and fraud networks, and last week raided the offices of SRS Auto Holdings. The company’s sole owner, Tan Yew Kiat, has been arrested. The case is linked to sanctions previously imposed by the US and UK on Chen Zhi and his network.

According to US allegations, this fraud organization has cross-border money laundering capabilities, with a scale reaching billions of dollars. The latest action signals that regional regulators are tightening scrutiny on cross-border capital flows and the ultimate beneficial owners behind companies, a trend expected to continue affecting compliance operations at Southeast Asian financial institutions.

Singapore Raid Escalates: SRS Auto Holdings Becomes Latest Target of Investigation

The recent police raid on SRS Auto Holdings in Singapore marks the latest expansion in the investigation into the “Prince Group-related fraud network.” Multiple sources revealed that investigators entered the company’s premises last week, seizing documents and electronic devices—a move closely consistent with the ongoing investigation into Chen Zhi and his affiliated companies.

Police later issued a statement saying the investigation has entered a critical phase, with at least one individual arrested on suspicion of money laundering. Although the statement did not name SRS or Tan Yew Kiat, industry feedback indicates that the action has sent shockwaves through the local auto loan, financial intermediary, and small financial institution sectors.

Notably, SRS previously received a “revolving credit facility” from Skyline Investment Management, which has been sanctioned by the US Treasury, quickly raising its sensitivity in the regulatory chain. The US alleges that Skyline is ultimately controlled by Chen Zhi—a core focus of the current investigation.

In the current regulatory environment, Singapore’s raid targets not just a single company but systematically examines the entire “supply chain involved.” Regulators are tracking capital flows, ultimate beneficial ownership (UBO) structures, and cross-border transaction patterns to clarify the network’s scale.

Involved Loans and Sensitive Capital Chains: Skyline Investment’s Key Position

A closer look at the core of the case shows that the loan agreement between SRS and Skyline serves as a critical breakthrough in the investigation. Corporate records from 2017 indicate that SRS provided collateral for a “non-committed revolving credit facility,” with Skyline—the lender—sanctioned by the US Treasury last year.

Skyline is deemed to be under Chen Zhi’s control, with its capital chain suspected of supporting the operation of transnational scam centers, money laundering, and asset transfers. The Singapore police action is widely seen as a result of in-depth tracking of “involved capital flow paths.”

Banks have also been drawn into regulatory scrutiny. SRS accounts are held at United Overseas Bank (UOB) and Maybank Singapore. While the banks declined to comment citing “customer privacy,” the increase in asset freezes and regulatory inquiries will undoubtedly tighten cross-border background checks in Southeast Asian banking.

The US and UK jointly imposed sanctions on Chen Zhi and related companies in December last year, prompting several Asian countries to launch synchronized investigations. Singapore police have confirmed to the media that assets exceeding S$150 million held under Chen Zhi or his companies—including vehicles, properties, and bank accounts—have been frozen.

This means that financial dealings between Skyline and SRS are more than mere business transactions; they are now key clues in the cross-border compliance investigation.

Chain Reaction After Chen Zhi’s Global Manhunt: Comprehensive Regulatory Response in Asia

To understand the background of the raid, one must review the US Department of Justice’s main allegations against Chen Zhi. According to US sources, he is deemed the “core operator of a cross-border scam network” spanning Cambodia and multiple Southeast Asian countries. The scam centers, through fake investment platforms, fraudulent customer support teams, and money laundering networks, have caused billions of dollars in global losses.

At the end of 2024, the US and UK simultaneously announced sanctions against:

• Chen Zhi personally
• Core members of his team
• Certain subsidiaries under Prince Holding Group
• Affiliated investment companies such as Skyline
• Multiple Southeast Asian shell companies used as capital conduits

Following the sanctions, regulators in Singapore, Hong Kong, Taiwan, and other regions took action to review account backgrounds, freeze implicated assets, and investigate related companies. The experience of SRS Auto Holdings is a typical case in this regional probe.

Prince Group later issued a statement denying all allegations and emphasizing its “compliance and transparency.” Meanwhile, multiple related companies are attempting to unfreeze funds held at Maybank and Revolut, claiming that asset freezes have caused “serious hardship” for employees and business operations.

In other words, this case is no longer a simple legal dispute for a single entity, but a comprehensive event involving multi-country regulation, capital flows, corporate governance, and regional financial stability.

Asset Freezes, Cross-Border Scrutiny, and a New Compliance Cycle for Southeast Asian Finance

As the investigation progresses, capital flows of implicated companies are facing unprecedented regulatory scrutiny. In financial hubs like Singapore and Hong Kong, regulators are increasing due diligence requirements for high-risk cross-border enterprises, especially those involved in auto loans, leasing, private capital, and investment vehicles.

From an industry perspective, the case brings three key impacts to Southeast Asia:

First, banks will further strengthen “ultimate beneficial owner” reviews, especially for funds coming from high-risk areas such as Cambodia, Sihanoukville, and Phnom Penh.

Second, cross-border capital using private lending or non-bank channels will encounter more automatic compliance triggers.

Third, collaborative regulatory mechanisms among Asian regulators will see more frequent application in cases of transnational scams and digital asset money laundering.

Meanwhile, sanctioned entities such as Skyline and TGC Cambodia are seeking legal avenues to resolve asset freezes, but under current international conditions, such requests will be handled strictly, leaving little room for unfreezing.

This regulatory trend could also impact companies engaged in digital assets, crypto capital intermediation, or on-chain custody, as these inherently involve cross-border transactions and privacy issues. Practices in Singapore and Hong Kong show that regulators are now treating “money laundering risk” as a cross-departmental issue and including the crypto industry under unified regulatory oversight.

Key Nodes and Regulatory Timeline

Key Information at a Glance

• Core individual under investigation: Chen Zhi
• Allegations: Transnational scam network, money laundering
• US sanctions effective: December 2024
• Scale of frozen assets in Singapore: Over S$150 million
• Involved companies: Skyline Investment, TGC Cambodia, etc.
• SRS loan agreement signed: 2017
• Most recent action: January 2025, Singapore police raid SRS and arrest Tan Yew Kiat

Industry Implications Behind Singapore’s Action

This case is not just a probe into a specific company, but serves as a “stress test” of the region’s financial system resilience. Southeast Asia’s active cross-border investments and complex capital structures have long posed regulatory challenges. Following increased US and UK sanctions, the regional regulatory framework has been compelled to upgrade in sync.

Multiple industry sources told the media that in the coming months, more small and medium enterprises, private lending channels, and asset management firms will likely be required to submit higher-level compliance documentation. For some digital asset institutions, this means bank account openings, inbound capital, and large transactions may all face delays.

From a macro perspective, such raids indicate Singapore is aligning more with international cooperation mechanisms and strengthening its compliance standards as a global financial center. For foreign companies wishing to operate locally over the long term, transparency and proof of funds’ origin will become basic thresholds.

FAQ

Why is SRS Auto Holdings a target of investigation? Because it previously received loans from Skyline Investment, which has been sanctioned by the US, creating links to the implicated network.

What are the core allegations against Chen Zhi? He is accused by the US of leading a transnational scam and money laundering network, involving billions of dollars.

Why does this case affect multiple Asian regulators? US sanctions have triggered a chain reaction across borders, requiring Singapore, Hong Kong, and Taiwan to review and freeze local related assets.

What role do banks play in this case? As capital platforms, various banks must cooperate with the investigation, including freezing accounts and submitting due diligence documents.

Will the investigation expand further? Highly likely. As capital flows become clearer, more related companies or individuals may come under investigation.