How S'pore can raise the compliance bar

SINGAPORE has one of the lowest rates of financial crimes in the world. It is a feat given the country's position as a global financial centre and international trading and transportation hub, where voluminous transactions take place daily.

On the flip side, the country's status as a pristine, global financial hub increases the risks of illicit funds flowing in from overseas. This was highlighted in the recent mutual evaluation report issued by the Financial Action Task Force (FATF) for Singapore. It noted that funds that pass through Singapore may fuel the perception that the transactions are legitimate, regardless of whether they are illicit or not. This could be due to the misconception that transactions that originate from Singapore will not involve illicit transactions.

Two other developments make it necessary for regulators worldwide to pay attention to this area. One is that globally, there is a greater awareness of the urgent need to combat Money Laundering and Terrorist Financing (ML/TF). This is evident from the widespread media coverage of the evolving 1MDB scandal and terrorist attacks around the world.