Money Laundering and Terrorism Financing Risk Assessment of Legal Persons

Singapore’s Money Laundering (ML) and Terrorism Financing (TF) Risk Assessment for Legal Persons (LP RA) provides a targeted review of the ML and TF threats and vulnerabilities that the various types of legal persons in Singapore are exposed to. It also outlines relevant mitigation measures that have been put in place to mitigate these risks and complements Singapore’s national ML and TF risk assessments.  

The full report is available for download here.

About the Report

While legal persons are formed to undertake a wide range of commercial and entrepreneurial activities, they can be vulnerable to misuse for illicit purposes, such as by obfuscating illicit money trails or aiding in fictitious transactions. Singapore has taken a whole-of-system approach to mitigate against the misuse of legal persons and put in place various measures that are risk-proportionate to the risk profile of each type of legal persons. These include amendments of our laws to improve corporate transparency, introducing measures to enhance the availability and accuracy of beneficial ownership information maintained in Singapore, strengthening enforcement actions and enhancing international cooperation.

The relevant law enforcement agencies, financial intelligence unit, and policy and supervisory agencies will continue to stay vigilant to the risks identified and raise the private sector’s risks awareness. Financial institutions and designated non-financial businesses and professionals (such as banks, corporate service providers, and accountants etc.) should also take reference from the LP RA in assessing their ML and TF risks and enhance their controls where appropriate.