Singapore Strengthens Anti-Money Laundering Framework with IMC Report

The Inter-Ministerial Committee (IMC) released its report today, detailing findings and recommendations from its review of Singapore’s Anti-Money Laundering (AML) framework. The report emphasizes a whole-of-society approach, calling for collaboration between stakeholders and the government as part of the frontline defense against financial crime.

Key Focus Areas

The IMC’s review, prompted by lessons from the major money laundering case in August 2023, aims to ensure the AML framework stays effective amid evolving criminal tactics. It focuses on five critical areas:

1. Preventing misuse of corporate structures by money launderers.
2. Enhancing financial institutions’ controls and fostering collaboration between institutions and authorities to detect suspicious transactions.
3. Strengthening other gatekeepers—like corporate service providers, real estate agents, and precious metals dealers—and ensuring their regulatory frameworks remain robust.
4. Centralizing monitoring capabilities across government agencies to detect suspicious activities efficiently.
5. Bolstering enforcement efforts to act decisively against money launderers and seize illicit proceeds.

Recommendations

The IMC’s recommendations aim to improve the AML framework while remaining supportive of legitimate business operations. The measures align with the three core pillars of Singapore’s AML strategy: Proactive Prevention, Timely Detection, and Effective Enforcement.

1. Proactive Prevention:

• Strengthen AML standards for gatekeepers.
• Support gatekeepers in enhancing anti-money laundering capabilities.
• Engage non-regulated sectors to raise awareness of ML risks.
• Deter misuse of corporate structures through tighter controls.

2. Timely Detection:

• Improve sensemaking and information-sharing across government agencies.
• Expand data-sharing channels with gatekeepers and other sectors.

3. Effective Enforcement:

• Strengthen legislative tools for prosecuting ML offences.
• Continuously review penalty frameworks to ensure they remain proportional and effective.
• Improve inter-agency coordination for faster enforcement actions.

Conclusion

These recommendations reinforce Singapore’s commitment to combating money laundering and financial crimes, safeguarding institutions while maintaining a business-friendly environment. As financial crime evolves, Singapore will continue adopting risk-based measures to protect its financial system and attract legitimate investors.

The full IMC report is available at: go.gov.sg/imc-aml-report.