Singapore's measures to combat money laundering and terrorist financing

Publication details

Language

English

Country

Singapore

Mutual Evaluation Report Singapore - 2016

Filename
MER-Singapore-2016.pdf
Size
2 MB
Format
application/pdf
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The FATF and (APG) conducted a Mutual Evaluation Report of Singapore using the FATF Methodology.  Singapore has a strong legal and institutional framework to fight money laundering (ML) and terrorist financing (TF). Singapore’s AML/CFT coordination is highly sophisticated and inclusive of all relevant competent authorities. Authorities have a reasonable understanding of their ML/TF risks, and are taking steps to mitigate them. The report however notes that the level of understanding of the ML/TF risks varies among financial institutions and DNFBPs, with the latter generally demonstrating a less mature understanding of ML/TF risks. Singapore is also encouraged to conduct comprehensive ML/TF risk assessments for all types of legal persons (private companies, public companies, foreign companies, etc.) and legal arrangements.

The report recognises that authorities are able to successfully investigate and prosecute domestic ML and TF cases, and encourages Singapore to further strengthen its investigative and prosecutorial actions on foreign predicate ML cases, in line with the country’s geographical location and its status as a global financial centre. The report also notes that Singapore should strengthen its criminal justice measures against TF in line with its risks and should continue to emphasise the pursuit of confiscation of proceeds of crime as a separate strategic goal.

Despite relatively strong AML/CFT supervision of most FIs, the report recommends that authorities continue their efforts to ensure the effective supervision across all categories of FIs and especially DNFPBs. The requirements for customer due-diligence, record-keeping and PEP clients are well understood by FIs. Singapore is also working to increase the level of implementation of the AML/CFT measures recently introduced for most types of DNFPBs.

This report was adopted by the FATF at its Plenary meeting in June 2016.     

Technical Compliance

Ratings which reflect the extent to which a country has implemented the technical requirements of the FATF Recommendations.

Singapore Mutual Evaluation - 2016

R.1 - Assessing risk & applying risk-based approach
LC
R.2 - National cooperation and coordination
C
R.3 - Money laundering offence
LC
R.4 - Confiscation and provisional measures
C
R.5 - Terrorist financing offence
LC
R.6 - Targeted financial sanctions related to terrorism & terrorist financing
LC
R.7 - Targeted financial sanctions related to proliferation
LC
R.8 - Non-profit organisations
LC
R.9 - Financial institution secrecy laws
C
R.10 - Customer due diligence
C
R.11 - Record keeping
C
R.12 - Politically exposed persons
C
R.13 - Correspondent banking
C
R.14 - Money or value transfer services
LC
R.15 - New technologies
C
R.16 - Wire transfers
C
R.17 - Reliance on third parties
C
R.18 - Internal controls and foreign branches and subsidiaries
C
R.19 - Higher-risk countries
LC
R.20 - Reporting of suspicious transactions
LC
R.21 - Tipping-off and confidentiality
C
R.22 - DNFBPs: Customer due diligence
PC
R.23 - DNFBPs: Other measures
PC
R.24 - Transparency and beneficial ownership of legal persons
PC
R.25 - Transparency and beneficial ownership of legal arrangements
PC
R.26 - Regulation and supervision of financial institutions
LC
R.27 - Powers of supervisors
C
R.28 - Regulation and supervision of DNFBPs
PC
R.29 - Financial intelligence units
C
R.30 - Responsibilities of law enforcement and investigative authorities
C
R.31 - Powers of law enforcement and investigative authorities
C
R.32 - Cash couriers
C
R.33 - Statistics
LC
R.34 - Guidance and feedback
LC
R.35- Sanctions
PC
R.36 - International instruments
C
R.37 - Mutual legal assistance
LC
R.38 - Mutual legal assistance: freezing and confiscation
LC
R.39 - Extradition
LC
R.40 - Other forms of international cooperation
LC

C = compliant   |   LC = largely compliant     |   PC = partially compliant   |   NC = non-compliant

Effectiveness

Ratings that reflect the extent to which a country's measures are effective. The assessment is conducted on the basis of 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve.

Ratings that reflect the extent to which a country's measures are effective. The assessment is conducted on the basis of 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve.

Singapore Mutual Evaluation - 2016

IO1
SE
IO2
SE
IO3
ME
IO4
ME
IO5
ME
IO6
SE
IO7
ME
IO8
ME
IO9
LE
IO10
ME
IO11
SE

HE = high level of effectiveness   |   SE = substantial level of effectiveness    |   ME = moderate level of effectiveness   |   LE = low level of effectiveness

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