BACKGROUND
On 4 October 2024, the Inter-Ministerial Committee (IMC) of Singapore released its report to list findings and recommendations following a review of Singapore’s Anti-Money Laundering (AML) framework. The IMC is pursuing a whole-of-society approach, in which relevant stakeholders, who are part of our frontline of defence, need to work collaboratively with the Government.
The IMC review focused on five key areas:
- How to better prevent money launderers from misusing corporate structures.
- How financial institutions (FIs) can enhance their controls and collaborate more effectively with one another and the authorities to guard against and flag suspicious transactions.
- How other gatekeepers (other than FIs) such as corporate service providers, real estate salespersons and estate agencies, and precious stones and precious metals dealers can better guard against ML risks.
- How to better centralise and strengthen monitoring and sense-making capabilities across government agencies to detect suspicious activities.
- How to strengthen enforcement to enable firm and decisive actions.
The IMC’s recommendations will strengthen three major areas:
1) Proactive Prevention: Building on existing AML frameworks to proactively prevent criminals from laundering their illicit proceeds, by:
- Strengthening AML standards for gatekeepers
- Further supporting gatekeepers in enhancing their capabilities to combat ML
- Engaging non-regulated sectors to enhance their understanding of ML risks
- Strengthening mechanisms to deter the misuse of companies
With the passage of the Anti-Money Laundering and Other Matters Act (AMLOM Act) in August 2024, which included amendments to various AML/CFT legislations, law enforcement agencies have more effective levers to prosecute ML criminals and deal with the seized properties of absconded suspects.
2) Timely Detection: Enabling sector supervisors and gatekeepers in the timely detection of illicit activities, through:
- Strengthening sense-making and information-sharing within government
- Deepening channels for data sharing amongst and with gatekeepers
3) Effective Enforcement: Taking effective enforcement actions against criminals who engage in illicit activities, by:
- Enhancing legislative levers for law enforcement agencies to better pursue and prosecute ML offences
- Continuously reviewing penalty frameworks to ensure that they remain proportionate and dissuasive
- Strengthening inter-agency coordination to enable swifter and more effective action against illicit ML activities
WHAT’S NEXT?
Management should ensure that:
The IMC findings and recommendations are incorporated into the FI’s AML assessments, policies and procedures. And more…
HOW CAN WE HELP?
Contact Us today to discuss how we can advise you on updating and enhancing your AML/CFT framework and operations. We have in-depth experience on AML/CFT Risk Management. Find out more here.
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