Financial Crime World

Singapore Steps Up Efforts to Combat Financing of Terrorism

The Monetary Authority of Singapore (MAS) has unveiled its National Strategy for Countering the Financing of Terrorism (CFT), aimed at strengthening the city-state’s efforts to prevent and combat terrorism financing. The five-pronged strategy was published on October 7, 2022, following a comprehensive assessment conducted in 2020.

Threats and Challenges

Singapore faces significant threats from regional and international terrorist groups as well as radicalised individuals operating alone. To address this challenge, the CFT strategy emphasizes the importance of coordinated efforts between law enforcement agencies, government policymakers, supervisory agencies, regulators, and private sector organizations.

The Five Prongs of the CFT Strategy

The five prongs of the CFT strategy are designed to enhance Singapore’s ability to prevent terrorism financing. These include:

  • Coordinated Risk Identification: A whole-of-government approach to identify emerging threats and update the country’s counter-terrorism financing landscape.
  • Strengthening Legal and Sanctions Frameworks: Enabling swift and effective action against terrorists and their financiers, with a focus on aligning Singapore’s financial sanctions framework with international standards and conventions.
  • Robust Regulatory Regime and Risk-Targeted Supervisory Framework: Utilizing data analytics and technological tools to detect and target higher-risk activities and entities.
  • Decisive Law Enforcement Actions: Enhanced cooperation between agencies to investigate and prosecute terrorism financing cases promptly.
  • International Partnerships and Cooperation: Continuing to implement international anti-money laundering and counter-terrorism standards, sharing intelligence with other jurisdictions, and contributing to the global fight against terrorism financing.

The Role of AML/CFT Compliance

The CFT strategy underscores the critical role that effective anti-money laundering (AML) and countering the financing of terrorism (CFT) compliance plays in preventing terrorist activities. Firms operating in Singapore must implement risk-based AML/CFT measures, including:

  • Automated Customer Screening: Screening thousands of data sources in real-time to detect suspicious activities.
  • Monitoring: Monitoring customer transactions for potential red flags.
  • Reporting: Reporting suspicious activities to the MAS.

Complying with MAS AML/CFT Regulations

Ripjar’s Labyrinth Screening platform can help firms achieve this compliance objective by rapidly screening thousands of data sources in real-time, providing actionable intelligence to inform decisions. To learn more about complying with MAS AML/CFT regulations, contact us today.