Financial Crime World

Singapore’s Crackdown on Financial Crime: AML Regulations and Enforcing Agencies

Singapore is a global leader in the fight against financial crime. As a member of the Financial Action Task Force (FATF) and the Asia/Pacific Group on Money Laundering (APG), Singapore has strict Anti-Money Laundering (AML) regulations in place.

AML Laws in Singapore

Singapore’s primary AML law is the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA). The following sections of the CDSA cover money laundering prevention and criminalization:

  • Section 43: Restriction on dealing with proceeds of scheduled offenses
  • Section 44: Offense of acquiring, possessing or disposing of proceeds of scheduled offenses
  • Section 46: Criminal liability of bodies corporate for offense by any person acting on its behalf
  • Section 47: Offenses of failure to disclose and suspicious transactions

In the context of terrorist financing, Singapore passed the Terrorism Suppression of Financing Act in 2002. More recently, in 2019, the Payment Services Act (PSA) was implemented, taking effect in January 2020, which outlines regulatory expectations for payment service providers.

Regulatory Bodies and Enforcement

  • Monetary Authority of Singapore (MAS):
    • Responsible for payment compliance under the PSA
    • Investigates money laundering allegations within the country’s financial institutions
    • Approximately 30 investigators in its anti-money laundering unit
    • Published an Enforcement Monograph and bi-annual reports detailing enforcement activities
    • Intensified focus on shell companies and money laundering schemes
    • Played a crucial role in the 1Malaysia Development Berhad (1MDB) scandal investigations (leading the arrest of Jho Low and probing entities with illegal activity links)

Additional agencies involved in industry-specific investigations:

  • Council for Estate Agents
  • Casino Regulatory Authority of Singapore

Intelligence unit, Suspicious Transaction Reporting Office (STRO) processes:

  • Suspicious Transaction Reports (STRs)
  • Cash Movement Reports (CMRs)
  • Cash Transaction Reports (CTRs)

Primary agency for investigating money laundering allegations:

  • Commercial Affairs Department of the Singapore Police

Related activities are prosecuted by:

  • The Attorney General

If drug trafficking is suspected:

  • Investigations may involve the Corrupt Practices Investigation Bureau and/or Central Narcotics Bureau

Singapore’s Commitment to Combating Financial Crime

With its robust AML regulations and dedicated agencies, Singapore remains committed to preventing and punishing financial crime, setting an example for global efforts in this area.