Singapore is strengthening its anti-money laundering (AML) framework with new recommendations from the Inter-Ministerial Committee (IMC).
This follows a review triggered by a high-profile money laundering case in August 2023 in which assets worth S$3 billion were seized.
of IMC report outlines strategies aimed at strengthening prevention, improving detection and enforcing tougher penalties to better protect the integrity of Singapore’s financial system from increasingly sophisticated financial crimes. .
The review, led by Minister Indranee Rajah, aims to prevent criminals from exploiting corporate structures, strengthen internal controls at financial institutions and improve cooperation between authorities and gatekeepers, including corporate service providers and real estate agents. Several key areas were considered, including methods. Dealer of precious stones and metals.
The IMC’s recommendations aim to adapt Singapore’s AML framework to counter increasingly sophisticated criminal techniques.
One of the key focuses is proactive prevention, with the IMC advocating for stronger regulation of corporate service providers and increased due diligence on non-financial sectors that are vulnerable to abuse by money launderers.
The report also highlights measures to stop shell company abuses, including introducing stricter registration requirements and enforcing nominated director rules.
In timely detection, the Commission emphasizes better information sharing between government agencies and private sector gatekeepers.
A key effort to enhance detection efforts is the development of NAVIGATE, a new whole-of-government (WOG) data sharing platform.
Led by the Singapore Police Force (SPF), NAVIGATE facilitates real-time and comprehensive analysis of money laundering risks across various agencies.
This allows law enforcement, departmental supervisors, and government agencies to seamlessly inspect databases and assess potential risks for organizations of concern.
The system replaces slow ad-hoc data request processes and ensures a more consistent and timely approach to identifying suspicious activity.
Additionally, the report recommends greater cooperation between banks and authorities through platforms such as: cosmic: A digital system that allows financial institutions to securely share customer risk information.
Regarding effective enforcement, the IMC proposes strengthening the legislative tools available to law enforcement agencies.
This includes recent changes to the Criminal Procedure Code, allowing authorities to take more decisive action against suspects fleeing and expanding their powers to confiscate assets.
The report also calls for tougher penalties for those found guilty of facilitating money laundering, with fines of up to $100,000 for corporate service providers who fail to meet their obligations.
“IMC’s recommendations are Singapore’s latest measures to combat ML and other financial crimes, which will continue to evolve and remain a threat to all international financial centres.
Singapore will continue to strengthen its defenses by adopting risk-appropriate measures to detect and deter criminals and protect our institutions and systems, while continuing to welcome legitimate investors and businesses. . ”
