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As with all assessed jurisdictions, the FATF identified areas for improvement.<\/span><\/p>\n Money laundering penalties here were found to be low and may not sufficiently deter offenders. While the country engages in strong international cooperation, “there can be delays, and Singapore could make better use of formal cooperation channels”.<\/span><\/p>\n While Singapore’s financial institutions and virtual asset service providers generally demonstrate good awareness of proliferation financing risks, “risk awareness can be improved in certain sectors that are not traditionally subject to FATF obligations, such as representation offices of foreign flag states”.\u00a0<\/span><\/p>\n Such offices, the report found, demonstrated “a negligible understanding” of rules around terrorism financing and proliferation financing.<\/span><\/p>\n 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”.\u00a0<\/span><\/p>\n 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”.<\/span><\/p>\n 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.<\/span><\/p>\n “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.<\/span><\/p>\n 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.<\/span><\/p>\nSINGAPORE WELCOMES RECOMMENDATIONS<\/h2>\n