Financial Crime World

Singapore Remains in Enhanced Follow-Up for AML/CFT Deficiencies

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Singapore has made progress in addressing technical compliance deficiencies identified in its previous Mutual Evaluation Report (MER), but still faces challenges in implementing Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) measures.

Progress Made, Challenges Remain

According to the 3rd Enhanced Follow-up Report, Singapore has been upgraded on four Recommendations, but three remain Partially Compliant. The country’s technical compliance with the Financial Action Task Force (FATF) Recommendations has been re-rated as follows:

Recommendation Breakdown

  • Recommendation 8: Largely Compliant, with Singapore still lacking a policy or procedure to ensure effective cooperation and information sharing among authorities.
  • Recommendation 18: Compliant, with Singapore providing practical examples on the sharing of analysis made on transactions or activities appearing to be unusual.
  • Recommendation 21: Compliant, with Singapore’s MAS Notice 626 establishing a generic obligation to take into account anti-tipping-off provisions.

Singapore has also reported progress on Recommendation 35, increasing penalties for entities committing terrorism financing offenses. However, the information provided has not been assessed by experts.

Challenges and Future Improvements

The country will remain in enhanced follow-up due to its three remaining partially compliant Recommendations and seven Immediate Outcomes rated Medium or Low Effectiveness (out of which one is Low Effectiveness). Singapore will continue to report back to the FATF on its progress in strengthening its implementation of AML/CFT measures. The 3rd Enhanced Follow-up Report highlights the need for further improvements in areas such as cooperation and information sharing among authorities.

Areas for Improvement

  • Cooperation and Information Sharing: Singapore needs to improve its policy or procedure to ensure effective cooperation and information sharing among authorities.
  • Implementation of AML/CFT Measures: The country should continue to strengthen its implementation of AML/CFT measures to address remaining deficiencies.

Source: FATF-GAFI, November 2019