Financial Crime World

Singapore Pledges to Strengthen Financial Inclusion and Anti-Money Laundering Measures Amid Recent Scandal

A Commitment to Enhanced Regulations and Enforcement

In response to a recent S$3 billion money laundering case, Prime Minister Lawrence Wong has vowed to strengthen Singapore’s anti-money laundering (AML) regulations and enforcement measures. This commitment comes as the country faces greater AML risks as an international financial and business hub.

Swift Action Taken in Response to Recent Case

The authorities have taken swift action in response to this case, with:

  • 10 suspects convicted within a year of their arrest
  • Around S$940 million of their assets forfeited to the State
  • Investigations ongoing against the remaining 17 suspects who are currently overseas

Singapore’s Approach to AML and Asset Recovery

Singapore adopts a risk-based approach to AML, focusing on identifying the latest financial trends and developments that can be exploited by criminals. The country has also:

  • Released its national risk assessment on money laundering
  • Published the National Asset Recovery Strategy, outlining how it will deprive criminals of their illicit funds and assets

Boosting International Cooperation in AML

Under Singapore’s presidency at the Financial Action Task Force (FATF), the organization has boosted international cooperation in AML, including:

  • Requiring member countries to recognize and enforce each other’s court orders on asset confiscation
  • Making legal entities more transparent by requiring the disclosure of additional information that helps law enforcement agencies identify the real owners behind such entities

Multi-Faceted Approach to Asset Recovery

Singapore’s approach to recovering assets is multi-faceted, focusing on:

  • Detecting suspicious and criminal activities
  • Depriving criminals of their proceeds
  • Delivering maximum restitution to victims
  • Deterrent effect: deterring the use of Singapore as a haven for illicit assets

Strengthened Partnerships and Initiatives

The government has strengthened partnerships with international counterparts, community stakeholders, and private financial institutions to achieve this goal. Initiatives such as:

  • The Anti-Scam Centre, which brings together law enforcement agencies, major banks, and online ecommerce platforms to trace suspicious fund flows and freeze illicit monies
  • Disrupted over 3,000 scams and averted losses of over S$100 million

Ongoing Efforts to Combat Financial Crime

Despite advancements in AML measures, new threats will continue emerging, and the fight against financial crime must remain an ongoing battle. The government will need to continually evolve its measures to tackle new challenges, including:

  • The rise of digital transactions and virtual assets that have made it easier for criminals to move and hide their illicit proceeds

Recent Developments in AML Enforcement

Between January 2019 and June this year, Singapore seized S$6 billion linked to criminal and money laundering activities, with:

  • S$416 million returned to victims
  • S$1 billion forfeited to the State

The authorities are committed to continuing their efforts to combat financial crime and protect the integrity of the financial system.