Singapore Reinforces Laws to Tackle Money Laundering and Asset Forfeiture
Enhancing Anti-Money Laundering Regime
In an effort to strengthen its anti-money laundering and counter-terrorism financing regime, Singapore has announced plans to reinforce laws governing asset forfeiture. The country’s national asset recovery strategy aims to deprive criminals of their illicit gains and remove the financial incentive for money laundering.
Key Aspects of the Strategy
- Empower law enforcement officers to apply to the courts to order the sale of seized assets that significantly depreciate or have high maintenance costs before the conviction of cases.
- Include luxury items such as fine art, antiques, investment-grade wine and vessels, as well as animal livestock like exotic fish, reptiles, and racehorses.
Addressing Greater Risks
Singapore continues to face greater money laundering and terrorism financing risks due to its status as an international financial hub. Prime Minister Lawrence Wong emphasized the need for the country to do better in recovering illicit assets, citing that around US$2 trillion to US$3 trillion worth of illicit proceeds are channeled through the global financial system every year.
Progress Made
Singapore has made significant progress in recovering illicit assets, with:
- Between January 2019 and June 2024, S$6 billion linked to criminal and money laundering activities seized by the police.
- Around S$416 million returned to victims, while S$1 billion forfeited to the state.
National Asset Recovery Strategy
The country’s national asset recovery strategy will comprise four prongs:
- Detecting suspicious and criminal activities
- Depriving criminals of their ill-gotten proceeds
- Delivering maximum recovery of assets for forfeiture and restitution to victims
- Deterrent criminals from using Singapore to hide, move, or enjoy their illicit assets
New Bill to be Introduced
A new Bill, the Anti-Money Laundering and Other Matters Bill, is expected to be introduced this year. The Bill will:
- Enable law enforcement agencies to conduct anti-money laundering investigations in relation to foreign environmental crimes such as illegal wildlife trading.
- Strengthen the ability of sectoral regulators to access Suspicious Transaction Reports filed by their regulated entities.
Commitment to Tackling Money Laundering
Singapore’s commitment to tackling money laundering and asset forfeiture is evident in its efforts to continually review and strengthen its legal frameworks to bring them in line with FATF’s standards.