Financial Crime World

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Singapore’s Anti-Money Laundering Laws and Regulations: A Whole-of-Government Approach to Combating Financial Crimes

Singapore has adopted a comprehensive approach to combat money laundering (ML) and terrorism financing (TF), involving all government agencies, financial institutions, and private sector stakeholders. The effort is led by the Anti-Money Launderling and Countering the Financing of Terrorism (AML/CFT) Steering Committee, comprising top officials from the Ministry of Home Affairs, Ministry of Finance, and Monetary Authority of Singapore.

Objectives

Singapore’s AML/CFT policy objectives are to:

  • Detect, deter, and prevent ML, associated predicate offenses, and TF
  • Protect the integrity of its financial system from illegal activities and illicit fund flows

The country’s AML/CFT efforts are centered on having a sound legal framework, low crime rate, intolerance for corruption, efficient judiciary, close international cooperation, established culture of compliance, and effective monitoring of measures implemented.

Principles

To achieve these objectives, Singapore follows several principles:

  • Allocating law enforcement, financial intelligence, and supervisory resources based on risk
  • Maintaining close policy and operational coordination across government agencies
  • Taking a preventive approach that combines licensing and reporting requirements with strict regulations and risk-based supervision
  • Enhancing private sector stakeholders’ understanding of ML/TF risks
  • Promoting a culture of compliance

National Risk Assessments

In addition to its AML/CFT efforts, Singapore has also conducted national risk assessments on:

  • Environmental crime money laundering (Env Crime ML)
  • Terrorism financing (TF)

The Env Crime ML National Risk Assessment identified key threats and vulnerabilities in the country’s financial system, including illegal wildlife trafficking, illegal logging, and waste trafficking.

The TF National Risk Assessment 2020 found that Singapore is exposed to TF threats posed by terrorist groups both regionally and internationally.

National Strategy for Countering the Financing of Terrorism

To combat these threats, Singapore has formulated a National Strategy for Countering the Financing of Terrorism (CFT), which outlines five key strategies:

  • 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

The strategy serves as a roadmap to guide future action plans and enhance coordination across government agencies, financial institutions, and private sector stakeholders.

Recognition and Impact

Singapore’s AML/CFT efforts have been recognized internationally, with the country being commended for its:

  • Robust regulatory regime
  • Efficient judiciary
  • Close international cooperation

The country’s financial system remains a key hub in Asia-Pacific, and its AML/CFT regulations are designed to ensure that it continues to maintain its integrity while preventing illegal activities from taking place within its borders.