Financial Crime World

FATF Recommendations Drive Global Efforts to Combat Money Laundering and Terrorism Financing

Singapore has been at the forefront of international efforts to combat money laundering and terrorism financing. The country’s Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) regime is guided by the 40 Recommendations of the Financial Action Task Force (FATF), a global standard-setting body.

Extended AML Measures

In June 2003, the FATF revised its 40 Recommendations to include designated non-financial businesses and professions, such as:

  • Casinos
  • Real estate agents
  • Dealers of precious metals/stones
  • Accountants
  • Lawyers

This extension aimed to prevent money laundering and terrorism financing through various sectors.

Terrorism Financing Measures

In October 2001, the FATF issued its Eight Special Recommendations (SR) on terrorism financing, with a focus on denying terrorists access to the international financial system. An additional SR was introduced in October 2004 to address the use of cash couriers in terrorism financing activities.

Singapore’s Commitment

As a member of the FATF, Singapore is committed to implementing these recommendations and ensuring that its AML/CFT regime remains effective in combating money laundering and terrorism financing.

Enhanced Cooperation

To achieve this goal, Singapore has strengthened cooperation between:

  • Financial intelligence units
  • Law enforcement agencies
  • Regulatory bodies

The country’s Suspicious Transaction Reporting Office (STRO) plays a crucial role in receiving and analyzing suspicious transaction reports from financial institutions, businesses, and individuals.

Public Awareness and Partnership

The STRO has engaged with the public, financial industry, and business community to raise awareness about the importance of reporting suspicious transactions. Through:

  • Outreach programs
  • Training sessions
  • Guidance materials

the STRO aims to empower individuals and entities to detect and report suspicious activities that may be linked to money laundering or terrorism financing.

Reporting Requirements

Under Singapore’s AML/CFT laws, all individuals and businesses are required to file suspicious transaction reports (STRs) with the STRO if they know or have reasonable grounds to suspect that any property is connected to a criminal activity. Failure to do so may constitute a criminal offense.

How to File an STR

Individuals and businesses can:

  • Download the STR form from the STRO’s website
  • Complete it in English
  • Submit it electronically through the STRO’s online platform (SONAR) or by post/hand delivery to the STRO’s office

By staying vigilant and working together, Singapore is committed to maintaining a robust AML/CFT regime that effectively prevents money laundering and terrorism financing.