Anti-Money Laundering Rules in Singapore Now Have Additional Measures
Singapore officials unveiled additional anti-money laundering rules pertaining to inter-agency data sharing, dormant entities and channels closure, and programs to encourage businesses to report suspected activities.
After uncovering a massive money laundering network last year, authorities seized over $2.2 billion in assets and imprisoned ten foreigners. They then established a ministerial committee to reevaluate the rules. In response, a more rigorous framework has been put in place to prevent similar issues in the future in the Asian financial hub.
In August, authorities accused two former bankers of assisting the convicted by using fake documents. Among the anti-money laundering rules in the pipeline is Singapore’s aim to identify and suspend inactive organisations and increase data sharing across government agencies.
Authorities will also educate non-regulated sectors, such as auto dealerships, on what constitutes suspicious transactions. After which, these sectors can report to authorities. These measures, intended to prevent and detect money laundering and assist in enforcing laws, will be implemented gradually and will be in place within a year, according to authorities.
Changes Across Mechanisms to Facilitate Anti-Money Laundering
Since the exposure, legal changes have taken place, including laws that make it easier for law enforcement to prosecute similar offences. Singapore’s two casinos are also subject to performing customer due diligence for a cash threshold of S$4000. The previous threshold was S$10,000.
The second minister for finance and chairperson for the inter-ministerial committee stated that the recommendations are mainly to deter money laundering. Furthermore, he ensured it would not burden legitimate businesses.
The minister also mentions that the balancing act of putting in place measures to sniff out suspicious activities that could lead to money laundering and allowing Singapore to be a free and open economy treads on a fine line. The anti-money laundering rules must be stringent enough to deter such activities from taking place in the first place. Still, they must be acceptable to genuine businesses desiring to reap the Singapore’s business environment.
