Singapore Tightens Grip on Anti-Money Laundering and Combating the Financing of Terrorism Regulations for Accountants
The Singapore government has recently introduced new regulations aimed at combating money laundering and financing of terrorism, with a particular focus on accountants who carry out transactions related to various business activities. The Accountants (Prevention of Money Laundering and Financing of Terrorism) Rules 2023 have been put in place to ensure that accounting entities operating in the country adhere to strict standards.
New Regulations for Accounting Entities
Under the new regulations, accounting entities that prepare or carry out transactions involving a range of activities are required to comply with anti-money laundering and combating the financing of terrorism (AML/CFT) requirements. These activities include:
- Buying and selling real estate
- Managing client money and assets
- Managing bank accounts
- Organizing contributions for company formation
- Creating and managing legal persons
- Buying and selling business entities
Individual Practitioners Also Affected
Individual practitioners working on behalf of accounting entities are also expected to comply with the new regulations. The rules stipulate that accountants who prepare or carry out such transactions must adhere to AML/CFT requirements in order to prevent money laundering and financing of terrorism activities.
Aim and Benefits
The Accountants (Prevention of Money Laundering and Financing of Terrorism) Rules 2023 aim to ensure that Singapore’s accounting sector is compliant with international standards and best practices in preventing money laundering and combating the financing of terrorism. The regulations will help to:
- Maintain confidence in the financial system
- Protect the integrity of financial transactions
- Prevent the misuse of the financial system for illicit activities
By implementing these new regulations, Singapore aims to maintain its reputation as a reliable and secure financial hub, while also protecting the interests of its citizens and businesses.