Singapore has a robust framework for combatting financial crime according to international body

         The Financial Action Task Force (FATF) published a peer evaluation report of Singapore today, which strongly affirmed that Singapore has a robust and effective framework and process to counter money-laundering (ML), terrorism financing (TF) and proliferation financing (PF).

2        The FATF assessed Singapore to have:

i)        Robust governance structures and legal framework to address ML/TF/PF risks, supported by strong operational coordination and cooperation mechanisms.

ii)        A sound ML/TF/PF risk understanding across the whole of Government and among Anti-Money Laundering (AML)/ Counter Financing of Terrorism (CFT)/ Counter Proliferation Financing (CPF)-obligated entities (such as banks), supported by strong cooperation among stakeholders in the public and private sectors, and with international counterparts.

iii)        A robust and risk-focused system of supervision of AML/CFT-obligated entities.

iv)        A well-established law enforcement system supporting investigations and prosecutions, including the effective use of financial intelligence, strong asset recovery capabilities and international cooperation.

3        Singapore is among the first few countries to undergo the 5th round of the FATF Mutual Evaluation (ME). The outcome of this round of assessment places Singapore on Regular Follow-up, which is the process for FATF members that have done well. This assessment is an improvement from Singapore’s 4th round results in 2016 even though the FATF Standards have been significantly enhanced in a number of areas.

4        Similar to the MEs of other jurisdictions, the FATF identified areas where Singapore can further strengthen its framework. For example, the report noted that Singapore’s financial institutions and virtual asset service providers generally demonstrate a good understanding and awareness of their PF risks and CPF obligations, and the level of PF risk awareness can be improved in certain sectors that are not traditionally subject to FATF obligations, such as representation offices of foreign flag States. The report further acknowledged that Singapore has a reasonably sound understanding of risks related to legal persons and legal arrangements, and that law enforcement agencies have been able to obtain BO information in a timely manner. Building on these foundations, Singapore can further enhance risk mitigation measures in areas such as foreign legal persons, and foreign legal arrangements.

5        Singapore remains firmly committed to complying with the FATF Standards, and welcomes the FATF’s recommendations. We are aware that Singapore, like other open economies, will continue to face nefarious actors who seek to exploit our economy and financial system for illicit purposes. At the same time, combatting financial crime will remain challenging as criminal typologies change rapidly and are increasingly transborder in nature. Singapore will carefully study the recommendations by the FATF and assess how we can adopt them in Singapore’s context and in a risk-proportionate manner.

6        We will also continue to build on the strengths of Singapore’s AML/CFT/CPF framework as acknowledged within the report, including our strong industry partnerships. For instance, Singapore will expand COSMIC1 to allow information sharing in significant cases, and include other major banks which are close partners on AML/CFT/CPF matters.

7        All stakeholders, from government agencies to gatekeepers, and businesses to individuals, are key in the fight against ML/TF/PF. Singapore will continue to maintain an effective AML/CFT/CPF regime to safeguard our reputation as a trusted and credible financial centre, and business and trading hub, while remaining welcoming to legitimate businesses and investors.

8        The FATF report is available on the FATF website, accessible through the following link: fatf-gafi.org/content/fatf-gafi/en/publications/Mutualevaluations/mer-singapore-2026.html

Issued By:
Monetary Authority of Singapore
Ministry of Home Affairs
Ministry of Finance