Financial Crime World

Singapore Unveils Comprehensive Guidelines to Combat Financing of Terrorism

The Monetary Authority of Singapore (MAS), Ministry of Home Affairs, and Ministry of Finance have jointly published the National Strategy for Countering the Financing of Terrorism (Strategy), outlining a five-pronged approach to combat terrorism financing (TF) in the country.

Key Threats and Vulnerabilities

According to the Strategy, released on October 7, 2022, Singapore’s key TF threats come from:

  • Regional and international terrorist groups
  • Radicalized individuals who raise, move, and use financial resources for terrorism purposes
  • Payment service providers carrying out cross-border money transfers and banks

Five-Pronged Strategy

The Strategy includes a comprehensive approach to combat TF, with the following key components:

Coordinated and Comprehensive Risk Identification

  • Regular review of the TF landscape, taking into account current typologies and international standards and requirements
  • Whole-of-Government approach to combatting money laundering, TF, and proliferation financing
  • Comprehensive legal framework enabling law enforcement agencies to take swift and effective action against terrorists, terrorist organizations, and their supporters
  • Key pieces of legislation include the Terrorism (Suppression of Financing) Act 2002 and the Internal Security Act 1960

Robust Regulatory Regime and Risk-Targeted Supervisory Framework

  • Risk-focused supervisory framework that is effective and aligned with international standards and best practices
  • Efforts to ensure that Singapore’s anti-money laundering/counter-terrorism financing (CFT) regulatory framework remains robust

Decisive Law Enforcement Actions

  • Swift and effective action against terrorists, terrorist organizations, and their supporters
  • Regular review of TF risks and CFT controls

International Partnerships and Cooperation

  • Bilateral and multilateral partnerships to share intelligence, exchange information, and conduct joint operations
  • Leverage structured platforms to enhance international cooperation and collaboration

Implementation and Monitoring

The Strategy is available on the MAS website at www.mas.gov.sg, along with related reference materials. The authorities will work together to implement and monitor the Strategy, ensuring that Singapore’s CFT framework remains robust and effective in combating TF.