Overview
Combating money laundering, terrorism financing and proliferation financing are priorities for MAS. We require our financial institutions to have sufficiently robust controls to detect and deter such illicit activities. We also partner the industry to bolster their defences, by engaging them on emerging risks, evolving criminal typologies and industry best practices. MAS is firmly committed to safeguarding Singapore as a clean and trusted financial centre.
Sustained effort and unstinting vigilance will be needed on the part of industry players to manage the risk of illicit finance and keep our financial centre clean.
- Ravi Menon, Managing Director, MAS
MAS Annual Report 2016/2017
COSMIC
COllaborative Sharing of ML/TF Information & Cases (COSMIC), a digital platform where financial institutions (FIs) collaborate to detect criminal activities.
Our Role in International Standard Setting
Singapore is an active member of the Financial Action Task Force (FATF), the global standard setting and oversight body for AML/CFT. As co-chair of its Policy Development Group, Singapore collaborates closely with fellow AML/CFT policy makers and supervisors to develop international standards. We are also a founding member of the Asia / Pacific Group on Money Laundering.
Regulations and Guidance
The controls that MAS requires of financial institutions include the need to identify and know their customers (including beneficial owners), conduct regular account reviews, and monitor and report any suspicious transaction.
The requirements and expectations on financial institutions are set out in MAS' AML/CFT Notices, Guidelines, and other Guidance issued by MAS.
Financial institutions should also refer to:
- AML/CFT announcements and media releases for information on high-risk jurisdictions.
- AML/CFT Guidance Papers issued by international bodies, including the FATF.
Financial institutions must also comply with the various Regulations made pursuant to section 192, read with sections 15(1)(b) and 219(d), of the Financial Services and Markets Act 2022 to discharge or facilitate the discharge of Singapore’s obligations by virtue of decisions of the Security Council of the United Nations. They must also comply with obligations to combat terrorism financing such as those found in the Terrorism (Suppression of Financing) Act 2002.
In response to Russia's invasion of Ukraine, the Singapore Government has imposed sanctions and restrictions against Russia. All financial institutions must comply with the financial measures set out in the Notices.
More information can be found here.
Under the Financial Services and Markets Act 2022 , a financial institution that fails or refuses to comply with any requirements in the applicable AML/CFT Notice is guilty of an offence and is liable on conviction to a fine not exceeding $1 million for each offence. In the case of a continuing offence, such a financial institution will be subject to a further fine of $100,000 for every day or part of the day during which the offence continues after conviction.
Resources
What's New
-
Circular on ensuring effective detection of sanctions-related risks
This circular sets out additional guidance that financial institutions (FIs) should consider in order to ensure that they have robust processes in place to effectively detect and manage sanctions-related risks. Specifically, FIs need to maintain strong Board and Senior Management oversight over sanctions-related risks,...
-
Strengthening AML/CFT controls on risks of misuse of legal persons/arrangements and complex structures
This paper sets out typologies, case studies as well as supervisory expectations of effective AML/CFT controls to detect and mitigate risks associated with the misuse of legal persons/arrangements and complex structures. This paper follows from MAS’ inspections of FIs and supplements the existing guidance on (a)...
-
MAS Will Not Tolerate the Abuse of Our Financial System for Illicit Activities
MAS had worked closely with the Commercial Affairs Department (CAD) to facilitate the development of the case that led to the Police’s arrest of 10 individuals for suspected involvement in offences including forgery and/or money laundering and resistance to lawful apprehension. MAS has also been collaborating closely with CAD to identify potentially tainted funds and assets in our financial system and prevent their dissipation.
-
Industry Perspectives on Best Practices – Management of Money Laundering, Terrorism Financing and Sanctions Risks from Customer Relationships with a Nexus to Digital Assets
This paper is produced by the ACIP working group on Digital Assets Risk Management. It aims to provide financial institutions (FIs) with a foundational framework to advance understanding and management of money laundering (ML), terrorism financing (TF) and sanctions risks arising from customer relationships with nexus to digital assets in the Singapore context. It also highlights “red flags” and best practices that FIs could adopt to identify, manage and mitigate the associated ML, TF and sanctions risks.
-
Effective Use of Data Analytics to Detect and Mitigate ML/TF Risks from the Misuse of Legal Persons
This information paper sets out positive data analytics use cases and information for financial institutions (FIs) to take reference from in enhancing detection and mitigation of misuse of legal persons risks. While this paper does not impose new regulatory obligations on FIs, FIs are encouraged to review their existing controls against the practices set out in the paper, and assess whether there is scope to incorporate or enhance the use of DA in their ML/TF risk detection.