Singapore Tightens AML Regulations with New Bill to Align with Global Standards

In a major step towards reinforcing Singapore’s stance against financial crime, the Singapore Parliament has approved the Anti-Money Laundering and Other Matters (AMLOM) Bill. Passed on August 6, 2024, this new legislation aligns Singapore’s AML (Anti-Money Laundering) and CFT (Countering the Financing of Terrorism) frameworks with the highest international standards, as recommended by the Financial Action Task Force (FATF). The Bill's provisions introduce targeted amendments across several acts, enhancing detection, prosecution, and enforcement capacities within Singapore’s financial and legal landscapes.

Key Legal Amendments Under the AMLOM BillOne of the most impactful changes made by the Bill involves the Corruption, Drug Trafficking & Other Serious Crimes (Confiscation of Benefits) Act (CDSA). Previously, prosecuting money laundering required prosecutors to trace the funds directly back to a criminal act, often complicated by layers of intermediaries and foreign accounts. The Bill has simplified this burden of proof, allowing prosecutors to secure convictions if they demonstrate that a defendant was reasonably aware of or had grounds to believe the funds were criminally derived. This change strengthens the ability of law enforcement agencies to address money laundering activities with more agility and certainty.

Environmental Crimes as Predicate Offenses Recognizing the global impact of environmental degradation, Singapore has extended the scope of money laundering predicate offenses to include serious foreign environmental crimes. Crimes such as illegal logging, land clearing, mining, waste trafficking, and wildlife trade can now lead to AML investigations if proceeds from these activities are detected in Singapore. By adding these offenses to the CDSA schedule, Singapore takes a proactive stance on environmental protection while broadening the scope of AML enforcement.

Enhanced Data Sharing for Financial IntelligenceThe Bill also revises several tax and trade-related acts, such as the Income Tax Act, the Goods & Services Tax Act, the Regulation of Imports and Exports Act, and the Free Trade Zones Act. These amendments empower the Inland Revenue Authority of Singapore (IRAS) and Singapore Customs to share tax and trade data with the Financial Intelligence Unit. This improvement fosters comprehensive data sharing, allowing for more precise financial intelligence that can significantly aid in AML/CFT enforcement efforts.

Streamlined Asset Recovery ProcessesSingapore has further optimized asset recovery through amendments to the CDSA and Criminal Procedure Code (CPC), allowing courts to order the sale of seized or restrained property under strict conditions, even if all parties do not consent. This change will help law enforcement agencies mitigate the costs of maintaining such properties and preserve their value for restitution to victims. By expediting the asset recovery process, Singapore supports efficient legal processes for handling confiscated criminal proceeds.

Strengthening AML Standards in the Casino IndustryIn line with FATF recommendations, the Bill revises the Casino Control Act, lowering the threshold for mandatory Customer Due Diligence (CDD) checks. Now, casino operators must conduct CDD for transactions involving SGD 4,000 or more, a reduction from previous limits of SGD 10,000 or SGD 5,000 for deposits. Furthermore, casinos are required to assess proliferation financing risks, acknowledging the potential for funds to be used in financing the proliferation of weapons of mass destruction. This tightened regulation reflects Singapore's commitment to a secure and transparent gaming environment.

Implications for Absconded SuspectsTo address cases of individuals suspected of money laundering or other serious offenses who evade Singapore’s jurisdiction, the Bill introduces new requirements for absconded suspects. Now, such individuals must present themselves before law enforcement to reclaim any seized property related to the offense. This measure ensures that absconded persons cannot exploit legal technicalities to reclaim assets linked to criminal activities, thereby upholding Singapore’s stringent AML framework.

A Step Forward in Global Financial IntegritySingapore’s latest amendments exemplify the nation's dedication to preserving financial integrity. By aligning closely with international AML/CFT standards and reinforcing enforcement mechanisms, Singapore is sending a clear message: financial crime and environmental violations will face decisive action within its borders.

As Singapore continues to adapt to emerging financial crime threats, this landmark Bill reflects its proactive and evolving approach to maintaining its position as a safe and reputable global financial hub. The country’s AML landscape is now better equipped to address the complexities of modern money laundering schemes and support global efforts in countering financial crime.