Financial Crime World

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Singapore Takes Tough Stance on Terrorist Financing Prevention

In its relentless pursuit to combat money laundering and terrorism financing, Singapore has adopted a whole-of-government approach led by the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Steering Committee.

Key Principles

The committee, comprising high-ranking officials from the Ministry of Home Affairs, Ministry of Finance, and Monetary Authority of Singapore, is tasked with detecting, deterring, and preventing money laundering and terrorism financing. The effort is centered on a sound and comprehensive legal, institutional, policy, and supervisory framework. Singapore’s AML/CFT Policy Objectives aim to protect the integrity of its financial system from illegal activities and illicit fund flows.

Here are the six key principles:

  • Allocating resources based on risk
  • Maintaining close coordination across agencies
  • Taking a preventive approach through licensing and reporting requirements
  • Promoting a culture of compliance among private sector stakeholders
  • Taking decisive law enforcement action against money laundering and terrorism financing threats
  • Providing assistance to other jurisdictions

Environmental Crime Money Laundering: A Growing Concern

Singapore’s Environmental Crime Money Laundering National Risk Assessment (NRA) highlights the country’s exposure to environmental crimes, including illegal wildlife trafficking, logging, and waste trafficking. The NRA assesses that Singapore’s position as an international financial center and trading hub makes it susceptible to these threats.

To address this concern:

  • Relevant law enforcement agencies, financial intelligence units, policy, and supervisory agencies will continue to monitor the risks identified in the NRA.
  • Private sector stakeholders are encouraged to take reference from the NRA in assessing their environmental crime money laundering risks and enhancing controls as necessary.

Terrorism Financing: A Growing Threat

Singapore’s Terrorism Financing National Risk Assessment (NRA) 2020 found that the country continues to be exposed to terrorism financing threats posed by terrorist groups both regionally and internationally. Certain sectors, such as money remittance providers and banks, are more vulnerable to these threats due to their ease of access and Singapore’s status as a financial and transport hub.

To combat this threat:

  • Singapore has formulated its National Strategy for Countering the Financing of Terrorism (CFT), which outlines the country’s national approach to address terrorism financing risks.
  • The strategy comprises five key points:
    • Coordinated risk identification
    • Strong legal and sanctions frameworks
    • Robust regulatory regime and risk-targeted supervisory framework
    • Decisive law enforcement actions
    • International partnerships and cooperation

Singapore’s Commitment to Combating Terrorist Financing

In conclusion, Singapore is committed to combating money laundering and terrorism financing through a whole-of-government approach. The country’s AML/CFT efforts are centered on a comprehensive legal, institutional, policy, and supervisory framework, which aims to protect the integrity of its financial system from illegal activities and illicit fund flows.

By adopting a five-point strategy comprising coordinated risk identification, strong legal and sanctions frameworks, robust regulatory regime, decisive law enforcement actions, and international partnerships, Singapore is well-positioned to address its terrorism financing risks and protect its financial system.