Singapore Strengthens Anti-Money Laundering Laws with New Bill

Singapore is taking decisive steps to enhance its ability to combat money laundering. The Ministry of Home Affairs has introduced the Anti-Money Laundering and Other Matters Bill to parliament, aiming to make it easier for law enforcement to prosecute such offenses.

Under the current legislation, prosecution is often hindered by the need to trace the entire money trail of suspected laundered funds. The proposed bill will remove this requirement, allowing prosecutors to proceed if they can prove that the money launderer knew, or had reasonable grounds to believe, they were dealing with criminal proceeds. This change will simplify the prosecution process, particularly in cases involving money mules and funds that have passed through multiple jurisdictions.

This legislative push follows a significant crackdown last year when Singapore dismantled a $2.24 billion money laundering ring operated by foreign nationals. The offenders, who were sentenced last month, had laundered money obtained from overseas scams and online gambling, using it to purchase real estate, luxury cars, and other high-value items in Singapore.

Prime Minister Lawrence Wong highlighted Singapore’s vulnerability to money laundering and terrorism financing, attributing it to the city-state’s status as a global financial and business hub. In response to these risks, the government has established an inter-ministerial panel to review and bolster its anti-money laundering framework.

The new bill also extends the reach of Singaporean authorities to investigate money laundering linked to overseas environmental crimes, such as illegal mining and logging, which were previously outside their jurisdiction. Additionally, it empowers law enforcement to sell or manage seized properties more effectively, even in cases where suspects have fled the country.

Further tightening the regulations, the bill mandates stricter customer due diligence for casino operators. The threshold for reporting single cash transactions and deposits will be lowered to S$4,000, ensuring greater scrutiny.

In conjunction with these legislative changes, Singapore recently published a national asset recovery strategy report. This report underscores the city-state’s commitment to stripping criminals of their illicit gains and diminishing the financial incentives for laundering money within its borders.

These measures collectively represent a robust effort by Singapore to safeguard its financial system and maintain its reputation as a secure international finance and business hub.