Singapore Releases National Anti-Money Laundering Strategy

On October 30, 2024, Singapore released the National Anti-Money Laundering (AML) strategy, a “risk-based” plan result of concerted action by the Ministry of Home Affairs (MHA), the Monetary Authority of Singapore (MAS), and the Ministry of Finance (MOF).

This strategy aims to combat illegal financial flows and preserve the integrity of Singapore’s economic system with a strategic framework that addresses evolving AML risks and criminal typologies.

The strategy is underpinned by 3 key pillars:

1. Prevention: Implement advanced measures to prevent the infiltration and misuse of Singapore’s financial system by money launderers.
2. Detection: Enhance surveillance and investigative capabilities to detect and identify suspicious transactions and activities timely, enabling quick mitigation actions.
3. Enforcement: Enforce severe penalties and sanctions against individuals and entities involved in money laundering and related offenses, serving as an intense obstacle.

Singapore’s National AML Strategy 2024

National AML Strategy is aligned with Singapore’s updated Money Laundering National Risk Assessment (ML NRA), published on June 20, 2023.

The ML NRA provides a comprehensive assessment of money laundering risks, drawing insights from supervisory and law enforcement agencies, the Suspicious Transaction Reporting Office (STRO), and the private sector to ensure that Singapore’s AML framework remains agile and responsive to rising incidents of money laundering.

Singapore’s AML/CFT Policy Principles 2024

The primary objective behind Singapore’s AML/CFT 2024 policy is to deter, hinder & detect money laundering, terrorism financing (TF), and relevant activities to secure the integrity of financial institutions from illegal funds flow.

Singapore employs the following principles to attain the goals outlined in this policy.

1. Allocate Financial Intelligence, Law Enforcement, and Supervisory Resources on a risk basis.
2. Maintain operational coordination and close policy across the government.
3. Take preventive measures to blend comprehensive reporting requirements, tough licensing, and risk-based administration of related non-financial & financial institutes.
4. Take deterrent & decisive law enforcement actions against money laundering and terrorist financing activities specifically relevant to foreign crimes.
5. Disturb serious offenses and drug dealing to hinder proceeds from money laundering.
6. Improve private sector shareholder’s understanding of money laundering & terrorism financing risks to promote a compliance culture.
7. Assist other states through informal & formal channels upon request.
8. Contribute and implement the development of international standards, specifically international standards of reducing money laundering activities set by the Financial Action Task Force (FATF) & United Nations Security Council Resolutions (UNSCR).

Singapore’s National Anti-Money Laundering (AML) strategy outlines a comprehensive approach to combat illegal financial flows and preserve its financial system’s integrity to shape up a future-proof financial ecosystem.

Singapore is positioning itself as a secure, forward-thinking financial hub ready for the digital age, by combating economic crime, embracing digital innovation, and nurturing global partnerships, says a press release.

Read Also

• Singapore Strengthens AML Laws to Combat Environmental Crimes
• Is Singapore Ready for Stricter AML Measures?
• Singapore MFA Reveals New Anti-Money Laundering Measures

ML/TF and Proliferation Financing (PF) Risk Assessments

Singapore prioritizes a risk-based approach to combat money laundering, terrorist financing, and proliferation financing by identifying and assessing potential risks to implement AML/CFT and counter-proliferation financing (CPF) measures.

Singapore authorities allocate resources strategically to improve the overall effectiveness of their AML/CFT/CPF efforts, by focusing on high-risk areas, state press release.

All relevant stakeholders, including financial institutions and designated non-financial businesses and professions, are advised to remain vigilant and to consult these risk assessments when evaluating their risk exposure.

They should then implement suitable risk-based and proportionate measures to address the identified risks.