Strengthening Anti-Money Laundering Measures in Real Estate Sector
Government Enhances Due Diligence Requirements to Combat Money Laundering
In an effort to combat money laundering in the real estate sector, the government has strengthened its due diligence requirements over the years. This includes regular inspections of property agents, agencies, and developers to ensure they are complying with anti-money laundering rules.
Properties Issued with Prohibition of Disposal Orders Located in Sentosa Cove
According to Minister Indranee, all properties issued with prohibition of disposal orders (PDOs) are located in Sentosa Cove. PDOs are issued when there is reason to believe that a property is linked to money laundering activities.
Measures to Deter Misuse of Companies for Money Laundering
- The government has implemented measures to deter the misuse of companies for money laundering, including:
- Screening all officers and shareholders in a company’s registers
- Requiring at least one director to be resident in Singapore
- Imposing fines on developers and property agents who fail to carry out due diligence checks
- Companies that remain inactive or are flagged by intelligence agencies will be struck off the register
Strengthening Anti-Money Laundering Rules for Single Family Offices
The government has also taken steps to strengthen anti-money laundering rules for single family offices, which have been linked to money laundering activities. This includes requiring them to open accounts with financial institutions in Singapore and subjecting them to stringent anti-money laundering controls.
Customer Due Diligence Rules in Place
- Dealers are required to perform checks before conducting transactions exceeding S$20,000
- Reports must be filed if suspicious activity is detected
- The rules apply to precious products such as jewellery and watches
Tightening Immigration Rules
The government has also tightened immigration rules to sieve out individuals involved in money laundering. This includes scrutinizing applications for work passes and other immigration facilities and step up checks on high-risk individuals.
Public Urged to Remain Vigilant
Despite these measures, the public should remain vigilant and not make “knee jerk reactions” that may cause Singapore’s business environment to be unfriendly to foreigners.
“We should be sensible. Most people are not illegal money launderers or criminals. If we make the rules too tight, then it is the vast majority of innocent applicants who will be unnecessarily penalised,” said Mrs Teo.
Future Plans
The government has announced plans to further strengthen anti-money laundering measures in the real estate sector and is reviewing whether Singapore needs to extend anti-money laundering requirements to new classes of assets such as luxury cars and bags.