In more detail
As a whole, the Act seeks to strengthen law enforcement powers and align Singapore's AML and countering terrorism financing (CFT) framework with FATF standards.
The Act will amend the Casino Control Act 2006 to increase the stringency of customer due diligence (CDD) requirements for casino operators in Singapore by lowering the threshold for such checks — from the previous threshold of single cash transactions involving SGD 10,000 (approximately USD 7,500) or more or deposits into a deposit account involving SGD 5,000 (approximately USD 3,900) or more, to single cash transactions or deposits involving SGD 4,000 (approximately USD 3,000) or more. The Act also requires casino operators to address proliferation financing risks as part of its CDD checks.
The Act will also introduce amendments to the Income Tax Act 1947, the Goods and Services Tax Act 1993, and other related statutes to allow agencies such as the Inland Revenue Authority and Singapore Customs to share tax and trade data with Singapore's Financial Intelligence Unit, the Suspicious Transaction Reporting Office. The Council for Estate Agencies and the Accounting and Corporate Regulatory Authority will also have access to suspicious transaction reports filed by regulated entities. This sharing of data is intended to allow the authorities to carry out more effective investigations, with a more complete and comprehensive perspective of the facts at hand. Safeguards will be put in place to ensure the confidentiality of all shared data.
The Act also introduces changes to the Criminal Procedure Code 2010, and the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992, to improve current processes for dealing with seized or restrained properties. Specifically, the Act allows the court-ordered sale of depreciating or costly-to-maintain seized properties without requiring the consent of all parties involved. However, the court has to be satisfied of certain facts before such sale can be ordered. Moreover, the Court may not order such sale unless every party known to have a prima facie interest in the property has been notified of the proceedings concerning the sale, and the court is satisfied that the costs of the sale are, or are likely to be, reasonable in the circumstances. Law enforcement agencies will be empowered to lower the cost of maintenance associated with property upkeep and to maintain the value of seized assets to facilitate better asset recovery and restitution to victims.
The Act likewise introduces measures to address properties linked to absconded suspects, ensuring that such properties cannot be claimed without the absconded individual personally participating in investigations. Additionally, the Act removes the requirement for the prosecution to prove direct links between criminal conduct and allegedly laundered money in Singapore, which is challenging to obtain particularly in cross-border cases. Instead, proof beyond reasonable doubt that a suspect knew or had reasonable grounds to believe that they were dealing with criminal proceeds will suffice.
Finally, the Act introduces serious foreign environmental crimes — including illegal mining, illegal wildlife trade, illegal logging and illegal waste trafficking — to the list of predicate offenses for money laundering. This aims to address the growing trend of laundering proceeds from such crimes through Singapore's financial system, and the Act will allow law enforcement agencies to investigate money laundering offenses if they suspect that the relevant monies in Singapore are derived from these crimes committed overseas. Greater vigilance in monitoring transactions associated with the new predicate offenses will be required.
Key takeaways
The Act reflects Singapore's unwavering commitment to tackling financial crime. Through improved inter-agency data sharing and other measures, the Act is expected to strengthen Singapore's existing anti-money laundering regime. Going forward, organizations may need to refresh their compliance strategies and ensure that robust systems are in place to align with the updated regulatory framework.
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