Singapore MFA Reveals New Anti-Money Laundering Measures

The Ministry of Foreign Affairs (MFA) in Singapore recently presented the “The Anti-Money Laundering and Other Matters Bill,” which focused on extensive measures to combat money laundering and other financial crimes. 

As Singapore is considered a major financial center in the world, the likelihood of criminals taking advantage of it is high.

The primary purpose of the bill is to strengthen Singaporeans’ protection against financial crime.

Specifically emphasizing on:

• Strict regulations for money laundering, pawnbrokers, and exchanging valuable metals and stones.
• Making it illegal to fund projects involving nuclear weapons to protect national security.
• Improving investigation abilities for crimes such as deforestation and wildlife trafficking.
• Enhancing corporate transparency by cross-agency data sharing and managing seized properties and assets.

Prosecution of Money Laundering Crimes

The primary purpose of this bill is to simplify the prosecution by allowing officials to remove the need to provide evidence that the laundered money is directly linked to a criminal in Singapore.

If a crime happened outside the country, a complete path of money transfer from the crime location to the recent location is needed before the bill.

Law enforcement agencies experience difficulty obtaining supported proof from international criminals, especially if the assets move from many countries before arriving in Singapore.

This bill will further modify the Confiscation of Benefits Act (CDSA), making it easy to prosecute and demonstrate why the guilty individuals knew laundered money or were linked with illicit activity.

Incorporation of Foreign Environmental Crimes

Authorities of Singapore are allowed to investigate crimes that are considered as serious under their laws.

Crimes like (illegal transfer of wildlife, deforestation, and illegal waste transfer) don’t count as important in the country in recent times,  which restricts the ability to investigate illegal activities.

This bill will further add a new regulation to assess these environmental offenses if the money obtained from these crimes is performed aboard.

Exchange of data between Agencies

This bill further amends several laws, including:

• The Goods and Service Tax Act
• The Income Tax Act
• The Free Trade Zones Act
• The Regulation of Imports and Exports Act

All to detect and manage multiple types of crimes.

These changes will allow the Suspicious Transaction Reporting Office (STRO) to gather trade and tax data from institutions such as the Inland Revenue Authority of Singapore and Singapore Customs.

It predicts that a Suspicious Transaction Reporting Officer will better identify Terrorism Financing (TF), Money Laundering (ML), and Proliferation Financing (PF) risks and help regulatory bodies and lawmakers detect and resolve financial crimes efficiently.

Read Also

• Singapore Publishes Updated Money Laundering National Risk Assessment Report
• Singapore Banks Investigate Rich Clients After A $3 Billion Money Laundering Case

Permit to Sell Seized Possessions

Law Enforcement Agencies (LEAs) require consent from all parties when they seize property to get an order from the court to sell it.

Without consent, they are responsible for maintaining it, which can be expensive.

Some items, such as livestock and vehicles, lose value over time. Amendments in the bill will promote the sale of captured property or items.

•  If all partners agree to sell
•  The item will lose its worth or require funds for higher maintenance
•  There is a solid Justification for sale.

This will help LEAs reduce costs and preserve asset value, aiding in better asset recovery and victim restitution.

When law enforcement organizations conduct investigations, they seize properties or vehicles linked to suspects no longer present in the country or avoid officials.

These suspects delay proceedings by not cooperating, and rules for managing these concerns are not defined.

The Criminal Procedure Code (CPC), the current law, doesn’t provide guidelines regarding these concerns.

Management of Properties related to Absconded Individuals

This bill further proposed that if the agencies wanted the court to keep holding properties, the court would do the same if there was still an ongoing investigation.

Property will not be abolished or sold until the case is closed. The suspect must return to Singapore and cooperate in investigations if he wants to reclaim possession.

They can’t acquire their possessions without bearing the consequences of their actions. They have to come and claim, or else the court will have the right to do anything with buildings, thus facilitating smooth proceedings.

Complying with AML/CFT Framework For Casino

The proposed bill also presented changes in the Casino Control Act to enhance checks for casino operators to carry CDD checks to prevent money laundering along with TF and PF.

Currently, Casino operators must carry out these when a client makes a transaction of $10,000 or more or deposits $10,000 or more in a casino deposit account.

Now, casino operators need to check PF risks along with customer due diligence ( CDD).

This will align with the global regulations set by the FATF and lower the set amount for CDD to S$4,000 or more.

Would this Bill Be Game Changer for Singapore?

The bill is likely to enhance the management of seized possessions, improve prosecution for financial crimes carried out in foreign countries, and, lastly, increase transparency by allowing data sharing between agencies.

By aligning with international regulations on money laundering and other crimes, Singapore is likely to regain its reputation as a secure financial country.