Enhance AML Compliance: Singapore's New Bill

Key Provisions of the New Bill

1. Enhanced Data Sharing

• The Bill proposes amendments to allow the Inland Revenue Authority of Singapore (IRAS) and Singapore Customs to share tax and trade data with the Suspicious Transaction Reporting Office (STRO).
• This data sharing aims to expedite investigations and improve the detection of money laundering and other serious crimes.

2. Regulator Access to Suspicious Transaction Reports

• The Council for Estate Agencies (CEA) and the Accounting and Corporate Regulatory Authority (ACRA) will gain access to suspicious transaction reports filed by property agents and corporate service providers.
• This provision follows scrutiny of these professionals in high-profile money laundering cases, such as the $3 billion “Fujian gang” case.

3. Simplified Prosecution for Overseas Offences

• The amendments will simplify how prosecutors prove money laundering cases involving overseas offences.
• Prosecutors will need to prove only that the launderer knew or believed they were dealing with criminal proceeds, rather than tracing the funds' entire trail.

4. Recognition of Foreign Environmental Crimes

• The Bill includes provisions to investigate money laundering linked to foreign environmental crimes like illegal mining and waste trafficking, which were not previously recognized as serious offences under Singapore law.

5. Improved Handling of Seized Properties

• Law enforcement will have streamlined processes for obtaining court orders to sell seized properties when no longer needed for investigations, reducing maintenance costs.

Why Enhanced AML Compliance Matters

• Regulatory Adherence: The proposed amendments signify stricter regulatory oversight. Non-compliance can lead to severe penalties and damage to reputation.
• Operational Efficiency: Efficient data sharing and streamlined processes reduce the time and resources spent on investigations and compliance procedures.
• Global Cooperation: With enhanced focus on foreign crimes and improved cross-border data sharing, businesses must be vigilant about international transactions and partnerships.

Recommendations for Enhancing AML Compliance

1. Review and Revise Compliance Programs

• Take stock of the current systems and processes to identify gaps and prioritise actions to align with the new regulatory requirements.
• Incorporate provisions for handling data sharing and reporting suspicious transactions as mandated.

2. Leverage Technology and Data Analytics

• Invest in advanced AML technologies, such as AI and machine learning, to detect suspicious activities more accurately and efficiently.
• Implement robust data analytics tools to analyze and report transactions in real-time.

3. Focus on preventing Trade Based Money Laundering

• Due Diligence on Trade Counterparties: Rigorous checks on the parties involved in trade transactions are crucial. This includes verifying the legitimacy of businesses and understanding their ownership structures.
• Screening for Dual Use Goods
• Vessel tracking, container tracking and document verification

4. Staff Training and Awareness

• Conduct regular training sessions to educate employees on the latest AML regulations and compliance procedures.
• Ensure that staff understand the importance of accurate data reporting and the potential consequences of non-compliance.
  

5. Enhance Due Diligence Procedures

• Strengthen customer due diligence (CDD) and know your customer (KYC) processes to identify and mitigate risks effectively.
• Perform enhanced due diligence (EDD) for high-risk clients, especially those involved in international transactions.

6. Collaborate with Regulatory Bodies

• Maintain open communication channels with regulatory bodies and stay informed about updates and best practices.
• Participate in industry forums and workshops to stay ahead of emerging threats and compliance trends.

Conclusion

The introduction of the Anti-Money Laundering and Other Matters Bill represents a significant step in Singapore's ongoing efforts to combat financial crimes. By enhancing inter-agency data sharing and simplifying prosecution processes, the Bill aims to create a more robust framework for detecting and preventing money laundering. Businesses must respond proactively by strengthening their AML compliance programs, leveraging technology, and fostering a culture of awareness and vigilance. Embracing these changes will not only ensure regulatory adherence but also enhance operational efficiency and protect against financial crimes.

How could LexisNexis Risk Solutions help you?

LexisNexis Risk Solutions offers a suite of tools to help you navigate complex AML compliance challenges throughout the customer lifecycle. By combining industry-recognized analytics with advanced technologies such as Machine Learning, Robotic Processing Automation (RBA) and Artificial Intelligence (AI), our AML solutions quickly distill disparate big data sets into actionable risk insights. This enables efficient assessment and management of anti-money laundering risk throughout the customer lifecycle. We offer integrated, configurable tools that help streamline AML compliance requirements so you can stay focused on key customer workflows: 

• Simplify initial due diligence
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• Optimize ongoing due diligence and monitoring efforts