Financial Crime World

Title: Singapore’s Robust Framework against Money Laundering and Terrorism Financing

In the dynamic financial landscape of Singapore, money laundering (ML) and terrorism financing (TF) pose significant threats to the city-state’s economy and security. To counteract these illicit activities, Singapore has established a comprehensive Anti-Money Laundering/Counter-Financing of Terrorism (AML/CFT) framework.

Singapore’s dedication to combating ML and TF

Singapore, a key financial player in the region, acknowledges the potential damage of ML and TF. The city-state’s robust AML/CFT framework, led by the Financial Investigation Division (FID) of the Commercial Affairs Department (CAD), includes rigorous legislation, international partnerships, and strict enforcement actions.

Understanding Money Laundering and Terrorism Financing

  • Criminals introduce proceeds of illicit activities into the financial system to disguise their true origin: Money Laundering
  • Funds intended for terroristic activities employ similar techniques to conceal their source: Terrorism Financing

Three Key Strategies

Strategy 1: Legislation and Partnerships

  • FID enforces Singapore’s AML/CFT regime
  • Detect, deter, and prevent money laundering and its underlying offenses
  • Proactive investigation and collaboration with international counterparts

Domestic and Foreign Offenses

  • Police prioritize cases, regardless of the origin of the offense
  • Standardized approach to investigations
  • Implementing a proforma for investigators
  • Periodic reviews of incoming foreign requests

Strategy 2: International Cooperation

  • Confidentiality and reciprocity where appropriate
  • Proactive communication and collaboration with foreign counterparts

Strategy 3: Asset Confiscation

  • Seizure of assets at the earliest opportunity
  • Swift response when suspected tainted assets remain
  • Strategic partnerships with financial institutions

Addressing ML Risks

Proactive Engagement

  • Risk sectors and regulators
  • Regular updates on ML trends
  • Implementing a proportionality principle for risk mitigation

Collaboration with Financial Reporting Unit (STRO)

  • Strengthening Singapore’s stance against ML
  • Public case studies on ML investigations and outcomes
  • Continued engagement with foreign counterparts
  • Media scanning for potential cases
  • Exploring ways to address new ML risks

This holistic AML/CFT framework underscores Singapore’s commitment to eradicating money laundering and terrorism financing, while maintaining its reputation as a well-regulated and trusted financial center.