Financial Crime World

Singapore’s Money Laundering Risks Reach National Proportions

A recent comprehensive risk assessment by the Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) Steering Committee has highlighted a significant threat from money laundering in Singapore, with the majority of cases involving fraudulent transactions.

The Risk Assessment Findings

  • 70% of money laundering cases involve banks
  • Common methods used by criminals include shell companies, trust accounts, and nominee directors
  • Advanced technologies such as cryptocurrencies and online trading platforms have made it easier for criminals to launder money
  • Singapore’s strategic geographical location makes it a key transit point for illicit funds, with the majority of cases involving international transactions

Strengthening AML Framework

To combat these risks, the AML/ CFT Steering Committee is working to strengthen Singapore’s AML framework by:

  • Increasing cooperation between government agencies, financial institutions, and law enforcement bodies
  • Working closely with international partners to share intelligence and best practices in combating money laundering

Singapore’s Economic Profile

Singapore is a major economic hub in Southeast Asia, with a GDP of S$673.3 billion in 2023. The country has:

  • A highly developed business infrastructure, with over 1,000 financial institutions operating in the city-state
  • One of the world’s fastest-growing wealth management centers, with 76% of its assets under management originating from outside the country

Singapore’s AML Policy Objectives

Singapore’s AML policy objectives are centered around ensuring that the country remains a trustworthy and transparent business destination. The government has made combating money laundering a national priority, recognizing that strong rule of law, transparency, and trustworthiness are essential for continued prosperity.

Conclusion

The comprehensive risk assessment has revealed a significant threat from money laundering in Singapore, with the majority of cases involving fraudulent transactions. To combat these risks, the government is strengthening its AML framework through increased cooperation between agencies, financial institutions, and law enforcement bodies. With Singapore’s strategic geographical location making it a key transit point for illicit funds, it is essential that the country remains vigilant in combating money laundering to ensure continued prosperity.