'Cannot be too lax, too stringent': Inter-ministerial committee on tighter anti-money laundering measures

Engaging businesses such as car dealers to report suspicious activities and inter-agency data-sharing are some of the new measures the government has proposed on Friday (Oct 4) to tackle money laundering in Singapore.

The tightened framework comes after an inter-ministerial committee was formed to review and make recommendations following the country's biggest money laundering case last August involving $3 billion in assets and property.

In that case, nine men and one woman, originally from China, were sentenced to jail where over $940 million worth of their assets were forfeited to the state. 

The Inter-Ministerial Committee (IMC) on Anti-Money Laundering, led by Minister in Prime Minister's Office Indranee Rajah, also recommends training 'gatekeepers' to detect and report suspicious activities.

These 'gatekeepers' include lawyers, property agents and bank relationship managers.

Companies that show signs of inactivity, such as not filing their annual returns, will also be flagged by the Accounting and Corporate Regulatory Authority's registry.

Engaging luxe goods dealers

The government will also step up engagement efforts with dealers that sell luxury high-value goods, and educate them about the identifying and flagging suspicious money laundering activities.

Under the law, anyone who knows or suspects that any property may be connected to criminal activity must file a Suspicious Transaction Report.

This will make it harder for criminals to deal with these dealers, while not imposing undue restrictions on legitimate activities.

Some of the recommendations made by the inter-ministerial committee have already been implemented.

This includes the new Anti-Money Laundering and Other Matters Bill that was passed in parliament on August 6, which allows Singapore courts to order the sale of seized properties, linked to crimes, without the consent of involved parties.

'Fine balance act'

Speaking at a press conference today, Indranee, who is also the Second Minister for Finance and National Development, said that the proposed measures are a "fine balance act" between strengthening anti-money laundering controls and minimising the impact to legitimate businesses.

"The system cannot be too lax, and at the same time, be too stringent," she added. "We are also under no illusion that these recommendations are a silver bullet to eradicate money laundering.

"Experience has shown that every time financial systems and law enforcement agencies take steps to combat crime, criminals will adjust their tactics and develop new ways to hide their illicit assets."

ALSO READ: Singapore flags real estate, casinos, corporate service providers among non-bank money laundering risks

chingshijie@asiaone.com