Working with International Partners and Financial Institutions to Tackle Cross-border Money Laundering
Prime Minister's OfficeSpeakers
Summary
This question concerns how the Monetary Authority of Singapore (MAS) collaborates with international partners and financial institutions to combat cross-border money laundering, as raised by Mr Christopher de Souza. Senior Minister Tharman Shanmugaratnam explained that MAS utilizes data analytics and intelligence from overseas counterparts to detect complex money laundering and terrorist financing patterns. He highlighted the AML/CFT Industry Partnership (ACIP) which facilitates information sharing between MAS, the police, and financial institutions to strengthen collective defences. Furthermore, Singapore maintains a legal framework aligned with Financial Action Task Force standards to ensure robust international information sharing mechanisms. Through these proactive exchanges, MAS is able to identify suspicious cross-border activities and implement appropriate mitigating measures.
Transcript
2 Mr Christopher de Souza asked the Prime Minister how is MAS working with international partners and financial institutions to tackle cross-border money laundering.
Mr Tharman Shanmugaratnam (for the Prime Minister): As with all major financial centres, Singapore intermediates sizeable global fund flows and is exposed to similar risks of cross-border money laundering and terrorist financing (ML/TF). In recent years, ML/TF schemes have also become increasingly complex and difficult to detect globally, as criminal syndicates exploit technology to hide their tracks. Tackling these risks therefore requires close surveillance in partnership with the industry and international partners.
The Monetary Authority of Singapore (MAS) taps on information from a wide range of sources to detect suspicious financial activities, including reports filed by financial institutions (FIs) and intelligence from our overseas counterparts. Data analytics techniques such as network link analysis are deployed to sift out unusual patterns of activity, thereby allowing us to more swiftly identify and mitigate emerging risks.
An example of active collaboration on anti-money laundering and countering the financing of terrorism (AML/CFT) is the AML/CFT Industry Partnership (ACIP)1. ACIP is co-chaired by MAS and the Singapore Police Force’s Commercial Affairs Department and brings together key FIs to share analyses of emerging ML/TF risks as well as information on specific cases. These proactive efforts have led to the identification and investigation of suspicious accounts and activities. ACIP has issued advisory notes and best practices papers to help improve AML/CFT practices across the industry to strengthen collective defences.
MAS also collaborates closely with our international counterparts to combat cross-border crime. Singapore has in place a legal framework and information sharing mechanisms that are in line with international standards set out by the Financial Action Task Force (FATF). MAS proactively exchanges relevant information with its international counterparts to surface suspicious cross-border flows and activities so that it can take the appropriate mitigating measures.