Singapore Broadens Authority to Aid Foreign Crime Investigations with New Money Laundering Laws

Singapore is preparing to strengthen its foothold on money laundering practices with new legislation reforms aimed at reinforcing its position as a key player in the international anti-money laundering battlefield.

According to media sources, authorities in Singapore will soon be able to obtain testimony from individuals to aid in the investigation of foreign crimes even before criminal charges have commenced abroad.

The republic is in a better position these days to assist other nations in their criminal investigations, with the “Mutual Assistance in Criminal Matters (Amendment) and Other Matters Bill” passed in  Parliament on November 11, 2024.

Currently, Singapore cannot get such proof if the foreign country has not taken legal proceedings.

The new law will further strengthen Singapore’s national plan against money laundering and terror financing.

According to Minister of State for Law Murali Pillai, who addressed the House during the Bill’s debate on Nov 11, 2024, a framework of international cooperation is required because crime tends to be increasingly international in its scope.

The government has initiated a new platform to augment the institutions’ information sharing in accordance with a report put out by the Inter-Ministerial Committee on AML on 4, October 2024.

The ‘Anti-Money Laundering and Other Matters Bill,’ approved on August 6, makes it simpler for Singapore to pursue money laundering crimes by lowering the standard of evidence required for prosecution.

These steps came after a high-intensity $3 billion money laundering scandal involving 10 foreign nationals shook the Republic last August.

What Are The Key Agendas Of These Regulations?

“Singapore had taken a resolute stance against financing terrorism and proliferation, and money laundering,” said Mr. Murali on Nov 11, 2024.

Under the new law, Singapore will confiscate property intended for use in a foreign crime. The orders of international confiscation by a competent authority will also be implementable by the Republic at large. It is only now that the Republic can execute such orders if they emanate from a court.

For example, a foreign confiscation order is for recovering, forfeiting, or seizing any money or property connected with a foreign offense.

Mr. Murali explains that these rules would facilitate Singaporean deprivation of criminals’ ill-gotten gains from such illegal means more easily.

The rules regarding trusts will also be changed.

A trust is built when a settlor transfers legal ownership of a piece of property to a trustee to manage on behalf of a beneficiary.

Legitimate use also encompasses when an aged parent transfers assets to a responsible family member so he can care for his crippled child.

However, since trusts could mask the beneficiary of the asset, most especially when they are part of a complex setup, they may be abused by criminals.

Soon, the law will require trustees to obtain further trust information, which will benefit the police in their investigations and banks when they are doing due diligence on customers.

According to media sources, those who violate the rules will risk a maximum fine of $25,000, an increase from $1,000 today.

Mr Yip Hon Weng (Yio Chu Kang) questioned how the government is going to achieve a balance between international collaboration and people’s freedom of privacy.

Mr. Murali says there are legal safeguards in this regard. For instance, if a foreign country is requesting to investigate someone due to someone’s race, religion, or political beliefs, Singapore must refuse assistance.

He also declared that “In the context of mutual legal assistance, it is crucial that we do not, and indeed we will not blindly accede to every request that we receive”.