Financial Crime World

Singapore Unveils Five-Pronged Strategy to Combat Financing of Terrorism

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Singapore has launched a comprehensive strategy to prevent, detect, investigate, and enforce against terrorism financing (TF). The National Strategy for Countering the Financing of Terrorism (CFT) provides a roadmap for future action plans to combat TF in the country.

Background

The strategy was developed based on findings from a holistic assessment of TF risks conducted in 2020. This assessment identified regional and international terrorist groups as well as radicalized individuals as key threats. Singapore’s proximity to countries exposed to terrorism activities and its role as a financial and transport hub make it particularly vulnerable to TF threats.

Five-Pronged Strategy

The National CFT Strategy aims to enhance coordination across law enforcement agencies, policymakers, regulators, supervisory agencies, and the private sector. The strategy includes:

Coordinated Risk Identification

  • Adopting a whole-of-government approach to identify TF risks
  • Reviewing the TF landscape regularly to stay ahead of emerging typologies and international standards
  • Ensuring that Singapore’s legal framework is comprehensive enough to enable swift action against terrorists and their financiers
  • Maintaining financial sanctions frameworks in line with international standards and conventions

Robust Regulatory Regime and Risk-Targeted Supervisory Framework

  • Strengthening the private sector’s awareness of TF risks through targeted outreach, industry guidance, and risk-focused supervision
  • Leveraging data analytics and technological tools to detect and target higher-risk activities and entities

Decisive Law Enforcement Actions

  • Strengthening inter-agency collaboration to detect and investigate TF
  • Expanding collaboration with the private sector to disrupt TF activities
  • Ensuring that investigative efforts lead to successful prosecutions

International Partnerships and Cooperation

  • Implementing and contributing to the development of international standards on combating money laundering/TF/proliferation financing set by the Financial Action Task Force and relevant United Nations Security Council Resolutions
  • Increasing efforts to provide and seek legal assistance from other jurisdictions and leveraging informal channels of cooperation

Conclusion

Singapore remains committed to taking firm action against TF to keep its country, region, and the world safe from terrorist activities. The full National CFT Strategy is available for download on the websites of the Ministry of Home Affairs, Ministry of Finance, and Monetary Authority of Singapore.