Financial Crime World

Singapore’s Quest for Financial Inclusion and Anti-Money Laundering Efforts

Singapore has taken a comprehensive approach to combating money laundering (ML) and terrorism financing (TF), with a whole-of-government strategy led by the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Steering Committee. The committee, comprising senior officials from the Ministry of Home Affairs, Ministry of Finance, and Monetary Authority of Singapore, aims to detect, deter, and prevent ML and TF while protecting the integrity of the financial system.

Key Strategies

  • Established Legal Framework: Singapore has a sound legal framework in place to combat ML and TF.
  • Low Crime Rate: The country has a low crime rate, making it easier to detect and prevent illegal activities.
  • Intolerance for Corruption: Singapore has zero tolerance for corruption, which helps to reduce the risk of ML and TF.
  • Efficient Judiciary: The country’s efficient judiciary ensures that perpetrators are held accountable for their actions.
  • Close International Cooperation: Singapore engages in close international cooperation to share intelligence and best practices to combat ML and TF.
  • Established Culture of Compliance: The country has an established culture of compliance, with financial institutions and other sectors taking a proactive approach to preventing ML and TF.

National Risk Assessments

Singapore’s Environmental Crime Money Laundering National Risk Assessment (NRA) highlights the key threats and vulnerabilities posed by environmental crimes, including illegal wildlife trafficking, logging, and waste trafficking. The NRA recommends that government agencies and private sector entities develop and implement measures to address ML risks arising from these crimes.

Terrorism Financing Threats

Singapore’s Terrorism Financing National Risk Assessment 2020 found that the country is exposed to TF threats from terrorist groups both regionally and internationally, particularly the radicalization of local residents and foreign workers. Certain sectors, such as money remittance providers and banks, are more vulnerable to TF threats due to their ease of access and Singapore’s status as a financial hub.

National Strategy for Countering the Financing of Terrorism (CFT)

Singapore has developed a National Strategy for CFT, which comprises five key strategies:

  • Coordinated Risk Identification: Identify and assess the risks associated with ML and TF.
  • Strong Legal and Sanctions Frameworks: Implement robust legal and sanctions frameworks to prevent ML and TF.
  • Robust Regulatory Regime: Establish a robust regulatory regime to supervise financial institutions and other sectors.
  • Decisive Law Enforcement Actions: Take decisive law enforcement actions against perpetrators of ML and TF.
  • International Partnerships: Engage in close international cooperation to share intelligence and best practices to combat ML and TF.

Recognition and Commitment

Singapore’s commitment to financial inclusion and anti-money laundering efforts has been recognized globally, with the country playing a key role in shaping international standards on combating ML and TF. Through its rigorous implementation of these standards, Singapore demonstrates its dedication to maintaining a robust and secure financial system that promotes economic growth while protecting against illicit activities.

Conclusion

Singapore’s holistic approach to combating ML and TF has enabled the country to maintain a strong reputation for financial inclusion and anti-money laundering efforts. The country’s commitment to implementing international standards and best practices has helped to prevent and detect illegal activities, making it an attractive destination for businesses and individuals alike.