Title: Singapore’s Journey Towards Effective Money Laundering Countermeasures: FATF Evaluation
The Financial Action Task Force (FATF), an international organization establishing standards for combating money laundering and terrorist financing, evaluated Singapore’s progress in implementing its recommendations in 2016. This assessment offered an extensive review of Singapore’s regulatory framework, with ratings indicating the extent of the country’s compliance.
Overview of Singapore’s Assessment
Singapore received the following ratings from FATF Recommendations:
Largely Compliant (LC):
- R.1: Risk assessment and application of risk-based approach
- R.2: National cooperation and coordination
- R.4: Confiscation and provisional measures
- R.5: Terrorist financing offence
- R.8: Non-profit organizations
- R.11: Record-keeping
- R.13: Correspondent banking
- R.14: Money or value transfer services
- R.15: New technologies
- R.16: Wire transfers
- R.19: Higher-risk countries
- R.23: DNFBPs (Designated Non-Financial Businesses and Professions): Other measures
- R.24: Transparency and beneficial ownership of legal persons
- R.25: Transparency and beneficial ownership of legal arrangements
- R.26: Regulation and supervision of financial institutions
- R.29: Financial intelligence units
- R.33: Statistics
- R.34: Guidance and feedback
Partially Compliant (PC):
- R.3: Money laundering offence
- R.6: Targeted financial sanctions related to terrorism and terrorist financing
- R.7: Targeted financial sanctions related to proliferation
- R.9: Financial institution secrecy laws
- R.10: Customer due diligence
- R.12: Politically exposed persons
- R.20: Reporting of suspicious transactions
- R.21: Tipping-off and confidentiality
- R.22: DNFBPs: Customer due diligence
- R.28: Regulation and supervision of DNFBPs
- R.35: Sanctions
Compliant (C):
- R.30: Responsibilities of law enforcement and investigative authorities
- R.31: Powers of law enforcement and investigative authorities
- R.32: Cash couriers
- R.36: International instruments
- R.37: Mutual legal assistance
- R.38: Mutual legal assistance: freezing and confiscation
- R.39: Extradition
- R.40: Other forms of international cooperation
Singapore’s dedication to adhering to international standards set by FATF is evident, as the assessment provides essential insights into their regulatory framework and encourages further enhancements in the areas with partially compliant regulations.
Rating Explanation
Largely Compliant (LC): In accordance with the FATF Recommendations, Singapore has put in place the necessary measures and procedures in these areas, exhibiting a substantial level of effort against money laundering and terrorist financing risks.
Partially Compliant (PC): The FATF has recognized some progress in these areas, but further enhancements are required to better meet international standards in fully addressing money laundering and terrorist financing risks.
Compliant (C): In these areas, Singapore has fulfilled all FATF recommendations, demonstrating a strong commitment against money laundering and terrorist financing risks and adherence to international standards.
Singapore’s continued efforts to meet and improve upon international anti-money laundering and terrorist financing standards ensure their position as a reputable and effective partner in the global fight against these criminal activities.