Singapore’s Financial Intelligence Unit Recognized for Combating Money Laundering and Terrorism Funding
Singapore Receives High Praise from the Financial Action Task Force (FATF)
The Financial Action Task Force (FATF) has concluded its assessment of Singapore’s implementation of anti-money laundering and counter-terrorist financing standards, with the island nation receiving high praise for its robust regime.
Key Findings of the FATF Report
- Broad Money Laundering Offences: Singapore’s money laundering offences are broad and cover a wide range of activities, including conversion or transfer, concealment or disguise, possession and acquisition of property.
- Increase in Prosecutions and Convictions: There has been an increase in money laundering prosecutions and convictions, despite one minor technical deficiency in relation to third-party laundering offences.
Commendations for Singapore’s Anti-Terrorism Measures
- Comprehensive Police Powers: Singapore’s terrorist financing offences are generally broad, with comprehensive police powers to seek and obtain evidence.
- Confiscation Provisions: Confiscation provisions are deemed comprehensive as ancillary to criminal prosecutions.
- Basic Provisions to Prevent Financial Institutions from Dealing with Terrorist-Related Assets: Basic provisions to prevent financial institutions and other persons from dealing with terrorist-related assets are broad.
Role of the Suspicious Transaction Reporting Office (STRO)
At the heart of Singapore’s anti-money laundering efforts is the Suspicious Transaction Reporting Office (STRO), the country’s financial intelligence unit. STRO has been recognized for being well-structured, staffed, and funded, although it is encouraged to focus more strongly on identifying money laundering from foreign predicate offences.
Recognition of the Monetary Authority of Singapore (MAS)
The Monetary Authority of Singapore (MAS) has also been praised for its risk-based approach to financial supervision, which includes a range of powers to monitor and ensure that financial institutions comply with anti-money laundering measures. The MAS has effectively implemented customer due diligence requirements, which are considered very broad.
Comprehensive International Cooperation
Singapore’s regime for international cooperation has also been recognized as comprehensive, with amendments to the Mutual Assistance in Criminal Matters Act (MACMA) allowing for assistance without requiring a treaty. STRO is said to engage in effective cooperation with foreign counterparts.
Conclusion
The FATF assessment was conducted using the 2004 FATF Recommendations and Methodology, which provides a framework for evaluating countries’ compliance with international anti-money laundering standards.