Singapore Strengthens Anti-Money Laundering Regime with Risk-Based Approach
In a bid to tackle the growing threat of money laundering and terrorist financing, Singapore has announced plans to strengthen its regulations and enforcement measures. Prime Minister Lawrence Wong, who is also Finance Minister, made the announcement at the Financial Action Task Force (FATF) Plenary Meeting in Marina Bay Sands Expo & Convention Centre yesterday.
Risk-Based Approach
Singapore’s approach to anti-money laundering will focus on identifying the latest financial trends and developments that can be exploited by criminals. The country is also set to release its national risk assessment on money laundering, 10 years after the previous one. This risk-based approach will enable the authorities to develop tools and legal frameworks to detect suspicious individuals and activities early.
Recent Successes
Singapore has already taken swift action in the recent S$3 billion money laundering case involving 10 foreigners and assets such as hard cash, luxury properties, branded goods, cryptocurrency, and alcohol. Ten suspects have been convicted within a year of their arrest, with around S$940 million of their assets forfeited to the State.
Commitment to Tackling Money Laundering
Singapore’s commitment to tackling money laundering was reiterated by PM Wong, who said that the country takes a strong approach against financial crime. However, he acknowledged that zero tolerance does not mean zero occurrence. He emphasized the need for Singapore’s measures to be proportionate and not over-zealous.
FATF’s Role
The FATF has played a crucial role in boosting international cooperation on anti-money laundering efforts. Singapore is currently holding the presidency of the 40-member global watchdog, which has fostered information sharing between law enforcement agencies and private financial institutions.
Asset Recovery Strategy
Singapore’s asset recovery strategy is focused on detecting suspicious and criminal activities, depriving criminals of their proceeds through prompt seizure, delivering maximum restitution to victims, and deterring the use of Singapore to hide or move illicit assets. The country has made significant progress in this area, with over 16,700 SMS alerts sent to bank customers from March to April this year warning over 12,500 people who were in the process of being scammed.
Emerging Threats
Despite these efforts, new threats are emerging, and PM Wong emphasized that the fight against financial crime is an ongoing battle. He cited the rise of digital transactions and virtual assets as factors which have helped criminals move and hide their illicit proceeds more easily.
Significant Recoveries
Singapore’s commitment to anti-money laundering efforts has resulted in significant recoveries, with over S$416 million returned to victims and S$1 billion forfeited to the State between January 2019 and June this year. The country will continue to evolve its strategies to stay ahead of emerging threats and ensure that its financial system remains secure and transparent.