Financial Crime World

Singapore Takes a Comprehensive Approach to Combating Terrorism Financing

Singapore has adopted a whole-of-government approach to combating money laundering (ML) and terrorism financing (TF). The country’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Steering Committee, comprising top officials from various government agencies, is leading this effort. Singapore’s AML/CFT Policy Objectives are to detect, deter, and prevent ML and TF, while protecting the integrity of its financial system.

  • Low crime rates
  • Intolerance for corruption
  • Efficient judiciary
  • Close international cooperation with other jurisdictions

Risk-Based Approach

The AML/CFT Efforts in Singapore are centered on having a risk-sensitive allocation of law enforcement, financial intelligence, and supervisory resources. The country takes a preventive approach that combines tough licensing and comprehensive reporting requirements, strict AML/CFT regulations, and risk-based supervision of the relevant financial and non-financial sectors.

Private Sector Engagement

Singapore’s government agencies have been engaging with private sector stakeholders to enhance their understanding of ML/TF risks and promote a culture of compliance. The country has also taken decisive law enforcement actions against ML/TF activity, including that related to foreign crimes.

National Risk Assessments

In 2020, Singapore conducted two national risk assessments:

  • Environmental Crime Money Laundering (ECML) National Risk Assessment: Identified key threats and vulnerabilities to ECML in the country.
  • Terrorism Financing (TF) National Risk Assessment: Identified key TF threats and vulnerabilities in the country.

National Strategy for Countering the Financing of Terrorism

Taking into account the findings of the TF NRA 2020, Singapore formulated its National Strategy for Countering the Financing of Terrorism (CFT). The strategy outlines a five-point approach to address TF risks in the country:

  1. Coordinated and comprehensive risk identification
  2. Strong legal and sanctions frameworks
  3. Robust regulatory regimes
  4. Decisive law enforcement actions
  5. International partnerships and cooperation

Enhanced Coordination

The relevant law enforcement agencies, policy makers, regulators, and supervisors in Singapore have adopted action plans as guided by the National CFT Strategy. The country’s commitment to combating ML/TF is evident in its efforts to enhance coordination and cooperation across government agencies and with the private sector.

In conclusion, Singapore’s comprehensive approach to combating terrorism financing demonstrates its commitment to protecting its financial system from illicit activities and preventing the financing of terrorism.