Anti-money laundering and counter-terrorist financing …

1 September 2016 Anti-money laundering and counter -terrorist financing measuresSingaporeMutual Evaluation Report 2016 FATF and APG. All rights reproduction or translation of this publication may be made without prior written permission. Applications for such permission, for all or part of this publication, should be made to the FATF Secretariat, 2 rue Andr Pascal 75775 Paris Cedex 16, France (fax: +33 1 44 30 61 37 or e-mail: coverphoto: ThinkstockCiting reference:The Financial Action Task Force (FATF) is an independent inter-governmental body that develops and promotes policies to protect the global financial system against money laundering , terrorist financing and the financing of proliferation of weapons of mass destruction.)

2 The FATF Recommendations are recognised as the global Anti-money laundering (AML) and counter -terrorist financing (CTF) more information about the FATF, please visit the website: more information about the APG, please visit the website: document and/or any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. This assessment was adopted by the FATF at its June 2016 Plenary and APG (2016), Anti-money laundering and counter -terrorist financing measures - singapore , Fourth Round Mutual Evaluation Report, FATF, Paris and APG, Sydney Anti-money laundering and counter -terrorist financing measures in singapore 2016 @ FATF and APG 2016 1 CONTENTS EXECUTIVE SUMMARY.

3 3 Key Findings .. 3 Risks and General Situation .. 5 Overall Level of Effectiveness and Technical Compliance .. 5 Priority Actions .. 10 Effectiveness & Technical Compliance Ratings .. 12 MUTUAL EVALUATION REPORT .. 13 Preface .. 13 CHAPTER 1. ML/TF RISKS AND CONTEXT .. 15 ML/TF Risks and Scoping of Higher-Risk Issues .. 15 Materiality .. 19 Structural Elements .. 20 Background and other Contextual Factors .. 21 CHAPTER 2. NATIONAL AML/CFT POLICIES AND 35 Key Findings and Recommended Actions .. 35 Immediate Outcome 1 (Risk, Policy and Coordination).

4 36 CHAPTER 3. LEGAL SYSTEM AND OPERATIONAL ISSUES .. 45 Key Findings and Recommended Actions .. 45 Immediate Outcome 6 (Financial intelligence ML/TF) .. 48 Immediate Outcome 7 (ML investigation and prosecution) .. 54 Immediate Outcome 8 (Confiscation) .. 66 CHAPTER 4. TERRORIST financing AND financing OF PROLIFERATION .. 77 Key Findings and Recommended Actions .. 77 Immediate Outcome 9 (TF investigation and prosecution).. 79 Immediate Outcome 10 (TF preventive measures and financial sanctions) .. 84 Immediate Outcome 11 (PF financial sanctions).

5 88 CHAPTER 5. PREVENTIVE MEASURES .. 91 Key Findings and Recommended Actions .. 91 Immediate Outcome 4 (Preventive Measures) .. 92 CHAPTER 6. SUPERVISION .. 103 Key Findings and Recommended Actions .. 103 Immediate Outcome 3 (Supervision) .. 104 CHAPTER 7. LEGAL PERSONS AND ARRANGEMENTS .. 115 Key Findings and Recommended Actions .. 115 Immediate Outcome 5 (Legal Persons and Arrangements) .. 116 CHAPTER 8. INTERNATIONAL COOPERATION .. 121 Key Findings and Recommended Actions .. 121 2 Anti-money laundering and counter -terrorist financing measures in singapore 2016 @ FATF and APG 2016 Immediate Outcome 2 (International Cooperation).

6 122 TECHNICAL COMPLIANCE 133 Recommendation 1 - Assessing Risks and applying a Risk-Based Approach .. 133 Recommendation 2 - National Cooperation and Coordination .. 135 Recommendation 3 - money laundering offence .. 136 Recommendation 4 - Confiscation and provisional measures .. 138 Recommendation 5 - Terrorist financing offence .. 140 Recommendation 6 - Targeted financial sanctions related to terrorism and terrorist financing .. 142 Recommendation 7 Targeted financial sanctions related to 145 Recommendation 8 Non-profit organisations.

7 147 Recommendation 9 Financial institution secrecy laws .. 148 Recommendation 10 Customer due diligence .. 149 Recommendation 11 Record-keeping .. 153 Recommendation 12 Politically exposed persons .. 154 Recommendation 13 Correspondent banking .. 155 Recommendation 14 money or value transfer services .. 156 Recommendation 15 New technologies .. 157 Recommendation 16 Wire transfers .. 158 Recommendation 17 Reliance on third parties .. 159 Recommendation 18 Internal controls and foreign branches and subsidiaries.

8 161 Recommendation 19 Higher-risk countries .. 162 Recommendation 20 Reporting of suspicious transaction .. 163 Recommendation 21 Tipping-off and confidentiality .. 163 Recommendation 22 DNFBPs: Customer due diligence .. 165 Recommendation 23 DNFBPs: Other measures .. 167 Recommendation 24 Transparency and beneficial ownership of legal persons .. 168 Recommendation 25 Transparency and beneficial ownership of legal arrangements .. 174 Recommendation 26 Regulation and supervision of financial institutions .. 176 Recommendation 27 Powers of supervisors.

9 178 Recommendation 28 Regulation and supervision of DNFBPs .. 179 Recommendation 29 - Financial intelligence units .. 181 Recommendation 30 Responsibilities of law enforcement and investigative authorities .. 183 Recommendation 31 - Powers of law enforcement and investigative authorities .. 185 Recommendation 32 Cash Couriers .. 187 Recommendation 33 Statistics .. 189 Recommendation 34 Guidance and feedback .. 190 Recommendation 35 Sanctions .. 192 Recommendation 36 International instruments .. 195 Recommendation 37 - Mutual legal assistance.

10 195 Recommendation 38 Mutual legal assistance: freezing and confiscation .. 197 Recommendation 39 Extradition .. 199 Recommendation 40 Other forms of international cooperation .. 200 Summary of Technical Compliance Key Deficiencies .. 205 TABLE OF ACRONYMS .. 209 Anti-money laundering and counter -terrorist financing measures in singapore 2016 @ FATF and APG 2016 3 Preface Executive Summary EXECUTIVE SUMMARY 1. This report provides a summary of the Anti-money laundering and combating the financing of terrorism (AML/CFT) measures in place in singapore as at the date of the on-site visit (17 November 2015 to 3 December 2015).