Singapore is enhancing its anti-money laundering (AML) framework with new recommendations from the Inter-Ministerial Committee (IMC).
This comes after a review sparked by the high-profile money laundering case in August 2023, in which more than S$3 billion worth of assets were seized.
The IMC’s report outlines strategies aimed at strengthening prevention, improving detection, and enforcing tougher penalties to better protect the integrity of Singapore’s financial system against increasingly sophisticated financial crimes.
The review, led by Minister Indranee Rajah, examined several key areas, including how to prevent the misuse of corporate structures by criminals, strengthen financial institutions’ internal controls, and improve cooperation between authorities and gatekeepers such as corporate service providers, real estate agents, and dealers in precious stones and metals.
The IMC’s recommendations aim to adapt Singapore’s AML framework to counter increasingly sophisticated criminal methods.
One major focus is on proactive prevention, where the IMC advocates for tighter regulations on corporate service providers and enhanced due diligence for non-financial sectors vulnerable to exploitation by money launderers.
The report also highlights measures to deter the misuse of shell companies, including the introduction of stricter registration requirements and the enforcement of nominee director rules.
In timely detection, the committee emphasizes better information sharing between government agencies and private sector gatekeepers.
A key initiative to strengthen detection efforts is the development of NAVIGATE, a new whole-of-government (WOG) data-sharing platform.
Led by the Singapore Police Force (SPF), NAVIGATE will facilitate real-time and comprehensive analysis of money laundering risks across various agencies.
It will allow law enforcement, sector supervisors, and government bodies to seamlessly screen databases and assess entities of concern for potential risks.
This system replaces the slower ad-hoc data request process, ensuring a more cohesive and timely approach to identifying suspicious activities.
In addition, the report recommends deepening the collaboration between banks and authorities through platforms like COSMIC—a digital system enabling financial institutions to share customer risk information securely.
On effective enforcement, the IMC proposes strengthening the legislative tools available to law enforcement agencies.
This includes recent amendments to the Criminal Procedure Code, allowing authorities to act decisively against absconding suspects and expanding asset forfeiture powers.
The report also calls for harsher penalties for those found guilty of facilitating money laundering, with fines of up to $100,000 for corporate service providers that fail to meet their obligations.
“The IMC’s recommendations are Singapore’s latest measures to combat ML and other financial crimes. Such crimes will continue to evolve and remain a threat to all international financial centres.
Singapore will continue to enhance our defences by adopting risk-proportionate measures to detect and deter criminals, safeguard our institutions and systems, while ensuring that we remain welcoming to legitimate investors and businesses.”
