Global watchdog gives Singapore top anti-money laundering rating, but flags weaknesses in penalties, cooperation

Singapore conducted over 11,000 money laundering investigations and 126 terrorism financing probes during the five-year assessment period, which the FATF described as “a very significant amount”. 

However, it said the country’s focus on offences within its borders, while appropriate given its sphere of influence, has “limited impact on pursuing the complex transnational organisations that are targeting Singapore’s citizens”.

As a hub for company formation and wealth management, Singapore was found to have a “reasonably good understanding” of how domestically incorporated companies can be misused, but a “more limited understanding” of risks tied to legal arrangements, unregistered foreign companies and complex structures.

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“Singapore remains firmly committed to complying with the FATF standards, and welcomes the FATF’s recommendations,” the three agencies said, acknowledging that open economies will continue to face those seeking to exploit their financial systems.

They said Singapore will study the recommendations and adopt them in a risk-proportionate manner, while building on existing strengths, including expanding COSMIC, the information-sharing initiative currently involving six major banks.

The country will press on with efforts to combat financial crime, they added, to protect its standing as a trusted financial, business and trading hub while remaining open to legitimate businesses and investors.