S’pore takes firm stance against money laundering

SINGAPORE — Singapore takes the possibility of being used as a conduit for money laundering and terrorist financing activities “very seriously”, and the Monetary Authority of Singapore (MAS) will not hesitate to take action against financial institutions whose anti-money-laundering controls are found to be lacking, Minister for National Development Lawrence Wong said in Parliament yesterday.

Mr Wong was responding to a question by Marsiling-Yew Tee GRC MP Ong Teng Koon on the additional measures being taken to enhance anti-money-laundering compliance by financial institutions, following the withdrawal of Swiss private bank BSI’s merchant banking licence.

MAS announced in May it had ordered BSI to shut down its operations here, citing serious breaches of anti-money-laundering rules, and had referred the names of six BSI staff — including its former CEO and Deputy CEO — to the public prosecutor to evaluate if they have committed any criminal offences.

Emphasising Singapore’s firm stance against illicit financing activities, Mr Wong yesterday reiterated the recent measures taken to strengthen Singapore’s regime against money laundering, including criminalising the laundering of serious tax offences; enhancing MAS’ notices and guidelines in line with evolving international standards; and stepping up inspections of financial institutions.

“We are also making organisational changes so as to enhance MAS’ supervisory focus and effectiveness at a time of increasing sophistication of illegal money flows globally,” Mr Wong said on behalf of Mr Tharman Shanmugaratnam, Deputy Prime Minister and minister-in-charge of MAS.

“MAS will consolidate supervisory responsibilities relating to money laundering and other illicit financing risks in a dedicated department. MAS will also have a new enforcement department that will work closely with Commercial Affairs Department (CAD) to investigate money laundering and other financial market offences,” Mr Wong said. The dedicated departments to combat money laundering and strengthen enforcement were first announced by MAS last month and will take effect August 1.

“MAS will not hesitate to take firm action against financial institutions whose anti-money-laundering controls are found to be lacking ... Financial institutions are the critical gatekeepers against the flow of illicit funds. We, therefore, require financial institutions to comply with strict anti-money laundering regulations, and to have in place robust controls to detect and deter illicit activities,” Mr Wong said. Rumi Hardasmalani