Financial Crime World

Singapore’s Economic Integrity Under Threat: A Look at Financial Crime and Regulatory Bodies

Singapore, as a leading financial hub, is not immune to the growing threat of financial crime. High-profile cases involving individuals with ties to the troubled Malaysian state fund, 1MDB, have put Singapore’s regulatory bodies to the test. This article explores Singapore’s efforts to combat financial crime and the roles of various regulatory bodies.

Financial Crime in Singapore: Statistics and Challenges

According to the Monetary Authority of Singapore’s (MAS) latest report, from 1st July 2017 to 31st December 2018:

  • One criminal conviction
  • S$16.8m in financial penalties and compositions
  • S$698,000 in civil penalties
  • 19 prohibition orders, 37 reprimands, 223 warnings, and 444 supervisory reminders

These statistics illustrate the challenge authorities face in managing the escalating volume and complexity of financial transactions and cross-border crimes.

Government Bodies and Authorities in Singapore

The Commercial Affairs Department (CAD)

The Commercial Affairs Department (CAD), part of the Singapore Police Force, is the primary white-collar crime enforcement agency. CAD has specialized units dealing with areas such as commercial fraud and financial fraud.

The Monetary Authority of Singapore (MAS)

MAS conducts investigations and audits to ensure compliance with statutes like the Securities and Futures Act (SFA). MAS regulates and supervises financial institutions in Singapore. Since March 2015, MAS and CAD have been collaborating on joint investigations.

The Attorney-General’s Chambers (AGC)

The Attorney General’s Chambers (AGC) has sole prosecution powers, with the Economic Crimes and Governance Division managing all prosecutions concerning financial crimes and corruption in Singapore.

Joint Investigations: Strengthening the Fight Against Financial Crimes

Following the October 2013 penny stock crash, Singapore’s largest market manipulation case, MAS and CAD formed a joint investigation team to target offenses like insider trading and market manipulation. This arrangement enables both parties to share their expertise, improving the speed and efficiency in detecting, investigating, and dealing with financial crimes.

Insider Dealing and Market Abuse

The SFA governs insider dealing and market abuse, including false trading, market manipulation, making false statements, fraudulently inducing individuals, and insider trading. Penalties for such offenses include fines of up to S$250,000 and imprisonment for up to seven years.

Fraud, Offenses, Bribery, and Corruption, and Money Laundering and Terrorist Financing

Singapore has comprehensive legislation dealing with various types of fraud, including corporate fraud, bribery, and money laundering offenses. The Penal Code sets out provisions for these crimes, and the Corrupt Practices Investigation Bureau (CPIB) is the primary regulatory body in this area. Financial penalties can go up to S$100,000 with imprisonment terms extending to five years.

Singapore’s Commitment to Combating Money Laundering and Terrorism Financing

Singapore’s commitment to combating money laundering and terrorism financing is unwavering as shown through its membership in the Financial Action Task Force (FATF). Singapore has stringent laws in place, including the Criminal Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act, the Organized Crime Act 2015, and the Terrorism (Suppression of Financing) Act.

Recent fines and penalties levied by MAS against financial institutions for breaching anti-money laundering (AML) and countering financing of terrorism (CFT) requirements reaffirm Singapore’s dedication to maintaining a strong legal and regulatory framework. The revised TSFA and Project Apollo exemplify Singapore’s commitment to addressing these challenges.

In conclusion, Singapore’s regulatory bodies continue to take bold steps in ensuring financial integrity and preventing the city-state from being used as a conduit for criminal activities. The collaboration between agencies like CAD and MAS plays a significant role in addressing these challenges effectively. Singapore’s proactive stance against financial crimes strengthens public trust in its financial sector.