Combatting Money Laundering and Terrorism Financing
MAS strengthens defence against money laundering risks in single family offices
31 July 2023
MAS launched a public consultation on a proposed framework to strengthen surveillance and defence against potential money laundering (ML) risks posed by Single Family Offices (SFOs) operating in Singapore. The proposed framework will introduce harmonised class exemption criteria for SFOs to ensure that all SFOs are subject to pertinent beneficial ownership requirements and anti-money laundering (AML) checks.
MAS strengthens AML/CFT controls for organised market operators
28 March 2024
MAS conducted a public consultation to introduce AML/CFT requirements for approved exchanges and recognised market operators to perform AML/CFT checks on market participants that are not regulated financial institutions, and that trade directly on their organised markets. The newly proposed AML/CFT requirements are to be imposed on organised market operators for direct participants which are not regulated financial institutions.
Collaborative sharing of Money Laundering/Terrorism Financing (ML/TF) Information & Cases Platform (COSMIC)
1 April 2024
MAS has launched a digital platform, COSMIC, together with six major commercial banks in Singapore: DBS, OCBC, UOB, SCB, Citibank, and HSBC. COSMIC allows FIs to securely share with one another, information on customers who exhibit multiple “red flags” that may indicate potential financial crime concerns, if stipulated thresholds are met. This makes it easier for FIs to detect and work with relevant authorities to deter criminal activity. To support this, MAS consulted on, and subsequently issued relevant Notice and Regulations relating to the sharing of information for AML/CFT purposes via COSMIC.
- MAS media release, published on 1 April 2024, on MAS’ launch of the COSMIC platform to strengthen the financial system’s defence against ML/TF
- Consultation Paper, published on 6 December 2023, on the Regulations Relating to FI-FI Information Sharing for AML/CFT
- Consultation Paper, published on 16 November 2023, on the Notice Relating to FI-FI Information Sharing for AML/CFT
- Second Reading speech by Mr Alvin Tan, Minister of State, Ministry of Culture, Community and Youth & Ministry of Trade and Industry, and Board Member of MAS, for the Financial Services and Markets (Amendment) Bill on 9 May 2023
- Explanatory Brief for Financial Services and Markets (Amendment) Bill 2023
Singapore publishes the Environmental Crimes Money Laundering National Risk Assessment
29 May 2024
MAS (together with the Ministry of Home Affairs, under the auspices of the Risks and Typologies Inter-Agency Group), published Singapore’s Environmental Crimes Money Laundering National Risk Assessment. The National Risk Assessment is made based on key environmental crime-related threats, vulnerabilities, controls, and areas of enhancements. It serves as a guide for financial institutions to adopt a risk-focused approach when developing and implementing strategies, policies as well as risk mitigation measures to address ML risks and illicit flows related to environmental crimes that cause disruption and negatively affect our environment and the eco-system.Singapore updates the Money Laundering National Risk Assessment
20 June 2024
MAS published an update on Singapore’s Money Laundering National Risk Assessment (ML NRA), which presents key ML threats impacting Singapore and assesses sectors’ money laundering risks in relation to these threats.
The updated ML NRA, together with other risk assessments conducted by the authorities, serve as a guide for all stakeholders, including FIs and Designated Non-Financial Businesses and Professions (DNFBP), to continue to strengthen the implementation of risk-based measures in Singapore’s fight against ML. FIs and DNFBPs should take reference from the updated ML NRA in assessing their risks and enhance their controls accordingly.
Taking firm steps to address the abuse of our financial system for illicit activities
Ongoing
MAS worked closely with the Commercial Affairs Department (CAD) to facilitate the development of the case that led to the Police’s arrest, on 15 August 2023, of 10 individuals for suspected involvement in laundering the proceeds of their overseas organised crime activities.
The case is on-going and MAS will take firm action against any errant FI found to have inadequate AML controls. MAS will also issue additional supervisory guidance and clarify policies in areas where warranted, to help FIs maintain a high standard of anti-money laundering, countering the financing of terrorism controls.
- MAS media release, published on 16 August 2023, on MAS’ collaboration with CAD to identify potentially tainted funds and assets
- Supporting statement by Mr Alvin Tan, Minister of State, Ministry of Culture, Community and Youth & Ministry of Trade and Industry, and Board Member of MAS, on Singapore’s Anti-Money Laundering Regime, published on 3 October 2023
MAS continued to work with the financial industry to combat money laundering, terrorism financing and proliferation financing (ML/TF/PF) risk
Ongoing
MAS continues efforts to raise FIs’ risk awareness and to guide them in enhancing their controls in relation to various key and/or new risk areas, ranging from sanctions, misuse of legal persons and complex structures and digital assets, through the issuance of guidance, information and best practice papers.
- 31 August 2023: MAS published additional guidance to set out (a) our expectations of Board and senior management oversight of sanctions-related risks; and (b) best practices that can help FIs strengthen controls to effectively detect and manage sanctions-related risks.
- 30 August 2023: MAS issued an information paper to share ML/TF typologies associated with the misuse of legal persons/arrangements and complex structures, and our supervisory expectations relating to FIs’ controls to mitigate such risk. /li>
- 27 June 2023: MAS published an information paper to encourage the use of data analytics to more effectively detect ML/TF risks arising from the misuse of legal persons. The paper sets out positive risk detection outcomes arising from the use of data analytics, and included use cases from the industry.
- MAS partnered the AML/CFT Industry Partnership (ACIP) to publish the following Papers:
- 27 March 2024: An Industry Perspectives Paper – Leveraging on Data Analytics and Machine Learning Methods for AML/CFT. This paper updates industry on successful implementation of data analytics solutions by FIs across various risk areas, and encourages FIs to expand their usage of data analytics solutions
- 6 February 2024: A best practice paper on the management of ML/TF/PF risks associated with receiving referrals from corporate service providers.
- 11 July 2023: A best practice paper to provide FIs with a foundational framework to advance their understanding and management of ML, TF and sanctions risks, arising from customer relationships with a nexus to digital assets.
- Industry Perspectives on Best Practices, published on 27 March 2024, on Leveraging on Data Analytics and Machine Learning Methods for AML/CFT
- Best practices for financial institutions, published on 6 February 2024, to manage ML/TF/PF risks associated with receiving referrals from corporate service providers
- MAS Guidance, published on 27 June 2023, on Effective Use of Data Analytics to Detect and Mitigate ML/TF Risks from the Misuse of Legal Persons
- Industry Perspectives on Best Practices, published on 11 July 2023, on the Management of Money Laundering, Terrorism Financing and Sanctions Risks from Customer Relationships with a Nexus to Digital Assets
- MAS Circular, published on 31 August 2023, on ensuring effective detection of sanctions-related risks
- Information paper, published on 30 August 2023, on Strengthening AML/CFT controls and practices to detect and mitigate risks of misuse of legal persons/arrangements and complex structures
MAS actively contributes to shaping international AML/CFT standards
Ongoing
MAS continues with our active participation at the Financial Action Task Force (FATF). Singapore took on the FATF Presidency from 1 July 2022 for a two-year term. During his FATF Presidency, Mr T Raja Kumar, Senior Advisor (International) at MHA, was supported by a dedicated team of experts from MAS and MHA. As part of Singapore’s FATF Presidency priorities, Mr Kumar and his team led efforts to drive the effective global implementation of the FATF Standards, including enhancing beneficial ownership and asset recovery standards, as well as AML/CFT controls on virtual assets service providers (or digital payment token service providers). Singapore hosted the June 2024 FATF Plenary from 23-28 June 2024, which was attended by more than 500 delegates from the FATF and the Global Network.