ACAMS and Singapore AML/CTF Regime

• ACAMS is the Association of Certified Anti-Money Laundering Specialists.
• ACAMS is a global membership organization enhancing AML and financial crime professionals' knowledge and skills.
• ACAMS provides certifications, training, and resources for combating financial crime.
• The SG Regime refers to Singapore's AML/CTF regulatory framework.
• Singapore has a comprehensive AML/CTF regime to prevent and detect illicit financial activities.

Key Legislation

• The Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA) governs AML/CTF in Singapore.
• The CDSA criminalizes money laundering and provides a legal framework for confiscating assets from criminal activity.
• The Terrorism (Suppression of Financing) Act (TSOFA) addresses terrorism financing.

Regulatory Authorities

• The Monetary Authority of Singapore (MAS) oversees financial institutions' AML/CTF compliance.
• MAS issues AML/CTF regulations, guidelines, and notices for financial institutions.
• The Casino Regulatory Authority also supervises AML/CTF within its sector.

Core Elements of the SG Regime

• Financial institutions must conduct Customer Due Diligence (CDD) to identify and verify customer identities.
  • CDD includes verifying the customer's name, DOB, address, and source of funds.
  • Enhanced Due Diligence (EDD) is needed for high-risk customers, such as politically exposed persons (PEPs).
• Financial institutions must report Suspicious Transactions to the Singapore Police Force's STRO.
  • Suspicious transactions suggest funds are proceeds of crime/related to terrorism financing.
• Financial institutions must keep records of customer identification data, account files, and transaction data for at least five years.
  • These records facilitate investigations and audits.
• Financial institutions must train employees on AML/CTF requirements and obligations.
  • Training should align with employee roles.
• Financial institutions need internal controls to prevent and detect money laundering and terrorism financing.
  • Internal controls include policies, procedures, and systems for CDD, monitoring, and reporting.
• Financial institutions should conduct regular risk assessments for money laundering and terrorism financing.
  • Risk assessments consider customers, products, services, and locations.

MAS Regulations and Guidelines

• MAS issues regulations, notices, and guidelines for detailed AML/CTF compliance guidance.
• These cover CDD, transaction monitoring, and reporting.
• Financial institutions are expected to adhere to these guidelines and implement effective AML/CTF programs.

Key MAS Notices

• Notice 626: Prevention of Money Laundering and Countering the Financing of Terrorism – Banks.
• Notice 1014: Prevention of Money Laundering and Countering the Financing of Terrorism – Finance Companies.
• Notice 1015: Prevention of Money Laundering and Countering the Financing of Terrorism – Capital Markets Intermediaries.
• Notice 3007: Prevention of Money Laundering and Countering the Financing of Terrorism – Payment Service Providers.

Cross-Border Issues

• Singapore actively participates in international efforts to combat money laundering and terrorism financing by cooperating on investigations and sharing information.
• Singapore is a member of the Financial Action Task Force (FATF), setting international AML/CTF standards.

Sanctions

• Singapore implements UN Security Council resolutions on sanctions.
• Financial institutions are required to screen their customers and transactions against relevant sanctions lists to ensure compliance.

Enforcement

• MAS can take enforcement action against financial institutions not complying with AML/CTF.
• Enforcement actions include financial penalties, directives, and revoking licenses.
• Individuals can be prosecuted for money laundering and terrorism financing.

Recent Developments and Trends

• There is an increased focus on virtual assets/cryptocurrencies and their potential for money laundering and terrorism financing.
• Greater emphasis is placed on data analytics and technology to enhance AML/CTF compliance.
• There is enhanced cooperation between regulatory authorities and financial institutions to combat financial crime.

ACAMS Role in Singapore

• ACAMS provides training and certification programs to AML/CTF professionals in Singapore.
• The Certified Anti-Money Laundering Specialist (CAMS) certification is widely recognized in the industry.
• ACAMS organizes conferences and events in Singapore for knowledge sharing and networking.

Penalties in Singapore

• CDSA stipulates penalties for money laundering offences, which may include up to 10 years imprisonment, a fine of up to S$500,000 for individuals, or both.
  • Corporations may face fines of up to S$1 million.
• TSOFA outlines penalties for terrorism financing offences.
  • Individuals may face up to 10 years imprisonment, a fine of up to S$500,000, or both.
• MAS can impose regulatory penalties on financial institutions failing to comply with AML/CTF requirements.
  • Penalties include financial penalties, restrictions, and revocation of licenses.

Risk-Based Approach

• Singapore adopts a risk-based approach to AML/CTF regulation.
• Financial institutions are expected to identify, assess, and understand their money laundering and terrorism financing risks, and implement appropriate controls to mitigate risks.
• The level of controls should be proportionate to the level of risk.

Politically Exposed Persons (PEPs)

• PEPs are individuals holding prominent public functions.
• PEPs are considered high-risk customers due to their potential for involvement in corruption and bribery.
• Financial institutions are required to conduct enhanced due diligence (EDD) on PEPs to verify the source of their funds and wealth.

Ongoing Monitoring

• Financial institutions should conduct ongoing monitoring of customer transactions to detect suspicious activity.
• Transaction monitoring systems should identify unusual transactions indicative of money laundering or terrorism financing.
• Suspicious transactions should be promptly reported to the STRO.

Correspondent Banking

• Correspondent banking involves one bank providing services to another in a different jurisdiction and poses vulnerabilities to money laundering and terrorism financing risks.
• Financial institutions should conduct thorough due diligence on correspondent banking partners and monitor transactions closely.

Shell Banks

• Shell banks have no physical presence and aren't affiliated with a regulated financial group and are considered high-risk.
• Financial institutions are generally prohibited from dealing with shell banks due to the lack of transparency and regulatory oversight.

Trade-Based Money Laundering

• Trade-based money laundering involves using international trade transactions to disguise proceeds of crime, including over/under-invoicing, and multiple invoicing.
• Financial institutions should be vigilant in detecting and preventing trade-based money laundering.

Digital Payment Token (DPT) Regulations

• MAS has extended AML/CTF regulations to cover digital payment token (DPT) service providers.
• DPT service providers need licensing and must comply with AML/CTF requirements, including CDD, transaction monitoring, and reporting.
• This is to address the risks associated with the use of DPTs for money laundering and terrorism financing.

Data Protection

• Financial institutions must comply with data protection laws when collecting, using, and storing customer data for AML/CTF purposes.
• They should have appropriate security measures in place to protect customer data from unauthorized access and disclosure.

Whistleblowing

• Singapore has a whistleblowing framework to encourage the reporting of suspected wrongdoing, including money laundering and terrorism financing.
• Financial institutions should have internal whistleblowing policies and procedures.

AML/CFT Audit

• Financial institutions should conduct regular AML/CFT audits to assess the effectiveness of their AML/CFT programs.
• Audits should be conducted by independent and competent auditors.