Financial Crime World

Singapore Government Cracks Down on Bribery and Corruption

The Singapore government has implemented strict laws and regulations to prevent and punish bribery and corruption offenses. Under the Prevention of Corruption Act (PCA), individuals can be charged with an offense committed outside Singapore as if it were committed in Singapore.

Defences and Exemptions

While there is no statutory defence for bribery under the PCA, accused persons can defend themselves by showing that either:

  • The transaction had no corrupt element
  • They did not know what they were doing was objectively corrupt

However, there are no exceptions for facilitation or grease payments, or customary payments in any trade.

Associated Persons Liable

Associated persons, including:

  • Agents
  • Spouses

can be held liable under sections 5 and 6 of the PCA if they:

  • Commit a bribery offense in Singapore
  • Abet the commission of bribery in relation to a principal residing in Singapore
  • Are Singapore citizens who commit a bribery offense overseas

Enforcement and Prosecution

The Corrupt Practices Investigation Bureau (CPIB) is responsible for investigating and preventing corruption in Singapore. The CPIB has powers of:

  • Investigation
  • Enforcement
  • Prosecution
    • Compelling individuals to attend and be interviewed
    • Searching premises and seizing evidence

Penalties

The penalties for participating in bribery and corruption under the PCA are severe, including:

  • Fines up to SG$100,000
  • Imprisonment terms not exceeding five years
  • In some cases, maximum term of imprisonment can be extended to seven years

Tax Treatment

Payments made as bribes or other corrupt payments may have tax implications. Individuals should seek advice from a qualified tax professional to ensure compliance with Singapore’s tax laws.

Important Note

This article is intended for informational purposes only and does not constitute legal advice. If you have any questions or concerns about bribery and corruption in Singapore, please consult a qualified legal professional.