Financial Crime World

Combating Financial Crime in Singapore: A Whole-of-Government Approach

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Singapore has adopted a comprehensive strategy to combat money laundering and terrorism financing, led by the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Steering Committee. The committee consists of high-ranking officials from the Ministry of Home Affairs, Ministry of Finance, and Monetary Authority of Singapore.

Policy Objectives

The AML/CFT policy objectives are to:

  • Detect, deter, and prevent money laundering and terrorist financing
  • Protect the integrity of Singapore’s financial system

To achieve these goals, the government has established a sound legal framework, institutional infrastructure, and supervisory regime. Singapore’s approach is centered on having a low crime rate, intolerance for corruption, an efficient judiciary, close international cooperation, and an established culture of compliance.

Preventive Approach

Singapore takes a preventive approach by combining tough licensing and reporting requirements with risk-based supervision of the financial sector. To enhance private sector stakeholders’ understanding of money laundering and terrorist financing risks, Singapore promotes a culture of compliance through education and awareness campaigns. The government also takes decisive action against individuals and entities involved in these illegal activities.

International Cooperation

Singapore is committed to contributing to the development of international standards for combating money laundering and terrorist financing, including those set by the Financial Action Task Force and the United Nations Security Council.

Environmental Crime Money Laundering Risk Assessment

The Environmental Crime Money Laundering National Risk Assessment (NRA) identified Singapore’s key exposure to environmental crimes money laundering as a result of its position as an international financial center and trading hub. The assessment highlighted the risks posed by:

  • Illegal wildlife trafficking
  • Illegal logging
  • Waste trafficking in Southeast Asia

To address these risks, relevant government agencies and private sector entities are advised to develop and implement measures to mitigate money laundering threats.

Recommendations

  • Financial institutions and designated non-financial businesses and professionals should assess their environmental crime money laundering risks and enhance their controls as necessary.

Terrorism Financing National Risk Assessment 2020

In 2020, Singapore conducted a Terrorism Financing National Risk Assessment (NRA), which identified the country’s key terrorism financing threats and vulnerabilities. The assessment found that:

  • Singapore is exposed to TF threats posed by terrorist groups regionally and internationally.
  • Certain sectors, such as money remittance providers and banks, are vulnerable to TF threats.

To combat these risks, competent authorities in Singapore take a whole-of-government approach, engaging relevant private sector entities on their TF risks and strengthening measures to mitigate TF risks.

National Strategy for Countering the Financing of Terrorism

Singapore’s National Strategy for Countering the Financing of Terrorism (CFT) outlines the country’s national approach to address its TF risks. The strategy is guided by five key pillars:

  • Coordinated and comprehensive risk identification
  • Strong legal and sanctions frameworks
  • Robust regulatory regime and risk-targeted supervisory framework
  • Decisive law enforcement actions
  • International partnerships and cooperation

As part of this strategy, Singapore has developed action plans to prevent, detect, investigate, and enforce against TF activities. The country is committed to working closely with other jurisdictions to combat financial crime and protect the integrity of its financial system.