Singapore's AML/CTF supervisors
The primary organisation in Singapore that oversees financial institutions' anti-money laundering compliance is the Monetary Authority of Singapore (MAS). The three additional regulators listed below collaborate with the MAS to implement anti-money laundering legislation for businesses operating in various industries.
The Accounting and Corporate Regulatory Authority is responsible for overseeing accountants, accounting companies, and trust or business service providers
Urban Redevelopment Authority (URA) is responsible for overseeing real estate industry
Casino Regulatory Authority (CRA) is responsible for overseeing casinos
Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA) specifically addresses money laundering offenses in the country. Under the CDSA, money laundering offenses are classified and described, outlining the specific actions that constitute money laundering.
How do you comply with AML/CTF regulations in Singapore?
Exercising customer due diligence (CDD)
Generally speaking, businesses are required to set up a system that assesses their clients' or customers' identities, sources of wealth, and nature of their businesses with the aim of identifying and verifying (where possible) their ultimate beneficial owners (for entities), the nature and patterns of transactions anticipated for such clients, their political exposure, or their state ownership, and determining the level of customer due diligence required using a risk-based approach.
Transactional surveillance
If a member of staff has reason to believe that the proceeds of any transaction may have been used for criminal activity, they are obligated to file Suspicious Transaction Reports (STRs) with Singapore's financial intelligence unit, the Suspicious Transaction Reporting Office (STRO). Failure to do so could result in fines of up to SGD 500,000 for corporations and SGD 250,000 and/or up to 3 years in prison. Large cash transactions worth more than SGD 10,000 must also be disclosed to the STRO as a cash transaction report.
Recordkeeping
Businesses that are regulated are required to save customer due diligence, transaction data, and information for a minimum of 5 years. A fine of up to SGD 1,000,000 and other possible sanctions, such as the suspension or revocation of business licences, the removal of directors, and the prohibition of sanctioned individuals from engaging in the regulated business activities, could be imposed for failure to comply with the anti-money laundering provisions under the CDSA.