Singapore's Unwavering Commitment to Combating Money Laundering and Terrorism Financing

Singapore, a global financial and business hub, faces heightened risks of money laundering and terrorism financing compared to other countries. However, the city-state is determined to address these challenges and maintain its reputation as a trusted financial center. Prime Minister Lawrence Wong, who also serves as the Finance Minister, recently addressed delegates at the Financial Action Task Force (FATF) plenary week, outlining Singapore's comprehensive strategy to combat these illicit activities.

Safeguarding Singapore's Financial Integrity: A Multifaceted Approach

Detecting and Deterring Illicit Funds

Singapore's National Asset Recovery Strategy focuses on four key pillars to combat money laundering and terrorism financing. The first pillar is to detect suspicious and criminal activities by tracing the flow of illicit funds. The authorities have strengthened partnerships with international counterparts, community stakeholders, and the private sector to enhance their ability to identify and disrupt these activities. For instance, the Singapore Police Force's Anti-Scam Command and local banks have collaborated to send over 16,700 SMS alerts to more than 12,500 bank customers, warning them of potential scams and preventing losses of over S0 million.

Depriving Criminals of Ill-Gotten Gains

The second pillar of Singapore's strategy is to deprive criminals of their ill-gotten proceeds through prompt seizure and confiscation. Between January 2019 and June 2024, the city-state seized S billion linked to criminal and money laundering activities. Of this, S6 million has been returned to victims, and S billion has been forfeited to the state, with the remaining funds linked to ongoing investigations or court proceedings.

Delivering Maximum Asset Recovery

The third pillar focuses on delivering maximum recovery of assets for forfeiture and restitution to victims. Singapore recognizes the importance of providing recourse to victims of crime by helping them recover their lost property and assets. The authorities are committed to ensuring that criminals are deprived of their ill-gotten gains and that victims are made whole, wherever possible.

Deterring the Use of Singapore's Financial Ecosystem for Illicit Purposes

The fourth and final pillar of Singapore's strategy is to deter criminals from using the city-state's financial ecosystem to hide, move, or enjoy their illicit assets. The authorities are continuously enhancing their anti-money laundering and counter-terrorism financing (AML/CTF) regime to prevent criminals from exploiting Singapore's financial system. When any abuse is detected, the authorities will track down the perpetrators and hold them accountable, including by depriving them of their ill-gotten assets.

Addressing Evolving Threats and Strengthening Partnerships

Singapore recognizes that criminal activities and methods are constantly evolving, and the city-state is committed to staying ahead of the curve. The authorities are continuously monitoring emerging trends and adapting their strategies to address new challenges. Additionally, Singapore has strengthened its partnerships with international counterparts, community stakeholders, and the private sector to enhance its asset recovery and loss prevention efforts.

Maintaining Singapore's Reputation as a Trusted Financial Center

Despite the heightened risks, Singapore remains determined to safeguard its reputation as a trusted financial center. The city-state's comprehensive approach to combating money laundering and terrorism financing, as outlined in its National Asset Recovery Strategy, demonstrates its unwavering commitment to upholding the integrity of its financial ecosystem. By depriving criminals of their ill-gotten gains, providing recourse to victims, and deterring the use of Singapore's financial system for illicit purposes, the authorities are ensuring that the country remains a safe and secure destination for legitimate businesses and investors.