Title: Singapore’s Battle Against Money Laundering and Terrorism Financing: An Overview

An Introduction to Singapore’s Approach

Singapore takes a whole-of-society approach to combat money laundering (ML) and terrorism financing (TF), with the Government and private sector entities each playing their roles. The city-state has a robust Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) regime, led by the AML/CFT Steering Committee.

Robust AML/CFT Regime

1. Whole-of-society approach: Singapore’s AML/CFT regime is centered on a whole-of-society approach, ensuring close policy and operational coordination among agencies.
2. Steering Committee: The AML/CFT Steering Committee, co-chaired by senior officials from the Ministry of Home Affairs, Ministry of Finance, and the Monetary Authority of Singapore, oversees and coordinates the government’s efforts.

Risk-Based Approach

Singapore adopts a risk-based approach, which is consistent with international standards, and imposes more stringent requirements for higher-risk sectors and situations.

Entities Involved

Financial Institutions (FIs) and Non-Financial Entities (NFEs): Various entities from the financial and non-financial sectors play a role. FIs include banks and licensed trust companies, while NFEs are real estate agents, lawyers, accountants, and corporate service providers.

Gatekeepers

Financial Institutions (FIs) and NFEs are required to perform due diligence checks on their customers, keep records, and file Suspicious Transaction Reports (STRs). Compliance is monitored and enforced through legal and supervisory frameworks.

Sectoral Regulators

Monetary Authority of Singapore: Sectoral regulators are responsible for ensuring their entities comply with AML/CFT obligations. Non-compliance results in enforcement and supervisory actions.

Financial Intelligence Unit

The Suspicious Transaction Reporting Office (STRO) of the Commercial Affairs Department of the Singapore Police Force is the country’s Financial Intelligence Unit. STRO receives and analyzes STRs and other relevant information, functioning as the main detection node for ML activities.

Law Enforcement

When illicit activity is detected, decisive law enforcement actions are taken. Agencies such as the Singapore Police Force, Central Narcotics Bureau, and Corrupt Practices Investigation Bureau conduct inquiries, investigations, and arrests.

Recognition of Singapore’s Effectiveness

Singapore’s robust AML/CFT regime is recognized globally for its effectiveness and commitment to combating financial crimes. The country is a member of the Financial Action Task Force and has significantly contributed to the FATF’s work against ML and TF.

Continual Reviews and Strengthening Measures

Singapore continually reviews and strengthens its AML/CFT measures in response to new risks and challenges. Enhancements include strengthening the AML/CFT regime for non-financial sectors, enhancing supervisory capabilities for financial institutions, and establishing a digital platform for FIs to share customer information.