Singapore Takes Steps to Combat Financing of Terrorism and Money Laundering
Whole-of-Government Approach
Singapore has reaffirmed its commitment to combating money laundering and terrorism financing by adopting a whole-of-government approach. The effort is led by the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Steering Committee, comprising senior officials from the Ministry of Home Affairs, Ministry of Finance, and Monetary Authority of Singapore.
AML/CFT 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 from illegal activities
To achieve these objectives, Singapore has established a comprehensive legal, institutional, policy, and supervisory framework that is:
- Low on crime rate
- Intolerant of corruption
- Has an efficient judiciary
Enhancing Private Sector Understanding and Promoting Compliance Culture
Singapore has implemented measures to enhance private sector stakeholders’ understanding of money laundering and terrorist financing risks and promote a culture of compliance. Additionally, the country takes decisive and deterrent law enforcement action against money laundering and terrorist financing activity, including foreign crimes.
National Risk Assessments
Singapore’s National Risk Assessment on Environmental Crime Money Laundering (NRA) identified the country’s exposure to environmental crime money laundering stemming from its position as an international financial center and trading hub. The report highlighted key threats and vulnerabilities faced by Singapore and outlined relevant mitigation measures that government agencies and private sector entities can implement.
The country has also conducted a Terrorism Financing National Risk Assessment (NRA) 2020, which found that Singapore is exposed to terrorist financing threats posed by regional and international terrorist groups. The NRA identified certain sectors, such as money remittance and banks, as more vulnerable to terrorist financing threats due to their ease of access and proximity to countries exposed to terrorism activities.
National Strategy for Countering the Financing of Terrorism (CFT)
Singapore has formulated a National Strategy for Countering the Financing of Terrorism (CFT), which outlines the country’s approach to addressing its terrorist financing risks. The strategy consists of five key components:
- 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
Enhancing International Cooperation
Singapore has taken steps to enhance international cooperation with other jurisdictions through formal and informal channels, spontaneously and on request. The country is committed to rigorously implementing and contributing to the development of international standards set by the Financial Action Task Force and United Nations Security Council Resolutions.
Ongoing Efforts
The authorities have emphasized that private sector entities should continue to incorporate the findings of the National Risk Assessments into their risk-based approach to countering money laundering and terrorist financing. The country’s efforts to combat money laundering and terrorist financing are ongoing, with regular updates and assessments to ensure the effectiveness of its measures.