Singapore Steps Up Efforts to Combat Terrorism Financing Detection

In a bid to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) efforts, Singapore has adopted a whole-of-government approach to detecting and preventing terrorist financing activities. This comprehensive strategy aims to detect, deter, and prevent money laundering, associated predicate offences, and terrorism financing while protecting the integrity of its financial system from illegal activities.

Key Pillars of Singapore’s AML/CFT Efforts

Sound and Comprehensive Legal Framework: A robust legal framework is essential for detecting and preventing terrorist financing activities.
Low Crime Rate: Singapore’s low crime rate contributes to a safe and secure environment, making it easier to detect and prevent illegal activities.
Intolerance for Corruption: The country’s zero-tolerance policy towards corruption helps to maintain the integrity of its financial system.
Efficient Judiciary: An efficient judiciary ensures that perpetrators of terrorist financing activities are held accountable and brought to justice.
Close International Cooperation: Singapore works closely with international partners to share intelligence, best practices, and resources to combat terrorism financing.
Established Culture of Compliance: A culture of compliance within the financial sector ensures that institutions are vigilant in detecting and reporting suspicious transactions.

National Risk Assessments (NRAs)

Singapore has conducted several NRAs to identify key threats and vulnerabilities related to environmental crimes, money laundering, and terrorism financing. The findings of these assessments have highlighted the country’s exposure to:

Environmental Crimes: Singapore is susceptible to threats from illegal wildlife trafficking, logging, and waste trafficking, which are prevalent in Southeast Asia.
Terrorism Financing (TF): The 2020 TF NRA identified the country’s exposure to TF threats posed by terrorist groups both regionally and internationally, as well as the propensity for individuals in Singapore to be radicalized and influenced to carry out TF activities.

National Strategy for Countering the Financing of Terrorism (CFT)

To address these risks, Singapore has formulated a National Strategy for CFT, which outlines a five-point approach:

Coordinated Risk Identification: Identify key risks and vulnerabilities related to terrorist financing.
Strong Legal and Sanctions Frameworks: Implement robust legal frameworks and sanctions to deter and prevent terrorist financing activities.
Robust Regulatory Regimes: Establish effective regulatory regimes to monitor and supervise financial institutions and designated non-financial businesses and professionals.
Decisive Law Enforcement Actions: Take decisive action against perpetrators of terrorist financing activities.
International Partnerships and Cooperation: Collaborate with international partners to share intelligence, best practices, and resources to combat terrorism financing.

Recommendations for Financial Institutions

Financial institutions and designated non-financial businesses and professionals are advised to take reference from the NRAs in assessing their risks and enhancing controls as appropriate. The authorities will continue to stay vigilant of identified risks and raise awareness among private sector stakeholders.