On 6 August 2024, Parliament passed into law the Anti-Money Laundering and Other Matters Act 2024 (the “Act”), and the Act was subsequently assented to by the President on 26 August 2024. The Act was likely in response to the multi-billion dollar money-laundering operation which was uncovered by the Singapore Police Force in August 2023, the perpetrators of which were Chinese nationals who were also holders of various non-Chinese passports.
The Act seeks to: (i) enhance the ability of LEAs to pursue and prosecute money-laundering offences, (ii) clarify and improve our processes to deal with seized or restrained properties linked to suspected criminal activities; and (iii) align the existing AML/CFT framework with the FATF standards.
The Act intends to achieve the aims set out above by amending several key pieces of legislation, including the following:
- Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 (the “CDSA”)
Under the Act, the Prosecution is no longer required to establish a direct link between the criminal conduct and the monies allegedly laundered in Singapore. Instead, it will be sufficient for the Prosecution to prove beyond reasonable doubt that the money launderer knew or had reasonable grounds to believe that he was dealing with criminal proceeds. This amendment will facilitate the prosecution of money mules, particularly in cases where the monies laundered had passed through bank accounts and intermediate in foreign jurisdiction, before entering Singapore. This also addresses the difficulties of gathering evidence from foreign victims, entities and jurisdictions, especially when the monies had passed through multiple foreign jurisdictions.
- Criminal Procedure Code 2010 (the “CPC”)
The Act amends the CPC to allow the sale of seized or restrained properties and deal with seized properties linked to suspects who have absconded, i.e. a person who cannot be found, apprehended or extradited within 6 months from the dated on which investigations were commenced against that person. These amendments aim to reduce the costs of maintaining seized assets and preserve their value and prevent the premature release of seized properties during ongoing investigation.
- Casino Control Act 2006 (the “CCA”)
The amendments to the CCA aim to align Singapore’s regulatory framework with the standards set by the FATF. The Act tightens requirements for casino operators to carry out their customer due diligence (“CDD”) checks in order to detect and prevent money laundering, terrorism financing and proliferation financing. Additionally, the threshold for conducting CDD checks will be lowered to cover cash transactions or deposits of $4,000 or more.
- Key Amendments to Trade And Taxes Legislation
The Act amends the Free Trade Zones Act 1966, Goods and Services Tax Act 1993, Income Tax Act 1947, and the Regulation of Imports and Exports Act 1995, in order to allow government agencies to share tax data and trade data with Singapore’s Financial Intelligence Unit, the Suspicious Transaction Reporting Office (“STRO”) of the Commercial Affairs Department of the Singapore Police Force. This data-sharing will enhance STRO’s ability to analyse money laundering, terrorism financing and proliferation financing risks and provide more comprehensive intelligence to LEAs and regulators.
Impact on Future Deals
While the Act does not pose any direct impediments to future transactions (acquisitions, divestments, investments, etc.), the passing of the Act indicates a strong push by the Singapore government towards improving the transparency of financial reporting and enhanced regulatory oversight. Parties involved in transactions in Singapore are reminded to be careful on the identities of their commercial partners and the origin of funds that are transiting through their entities. Banks, legal counsels and company secretaries are themselves subject to strong legal obligations of scrutiny.