Singapore to set up dedicated departments to combat money laundering

Monetary Authority of Singapore (MAS) will set up dedicated departments to combat money laundering and strengthen enforcement respectively, announced MAS in a press release on Monday.

The authority said these changes will take effect on August 1 this year. MAS will form a dedicated Anti-Money Laundering (AML) Department which will streamline the existing responsibilities for regulatory policies relating to money laundering and other illicit financing risks.

In addition, a dedicated supervisory team will be set up to monitor these risks and carry out onsite supervision of how financial institutions manage these risks.

These functions used to be carried out by different departments in MAS, but the new structure will enhance supervisory focus, said the press release.

MAS will centralize and strengthen its enforcement functions under a new Enforcement Department, which will continue to jointly investigate with the Commercial Affairs Department capital markets misconduct offences.

In addition, the new department will be responsible for enforcement actions arising from regulatory breaches of MAS' banking, insurance and capital markets regulations.

MAS stressed that a strong enforcement capability is necessary to conduct rigorous investigations of suspected violations and misdemeanors and to take swift actions to establish culpability and punish as appropriate the institutions or individuals who have breached MAS' regulations.

Managing Director of MAS Ravi Menon noted the risk of criminal elements abusing the financial system increases as scale, sophistication, and connectivity grow. He said MAS will strengthen supervision of financial institutions' controls to combat money laundering and illicit financing.

"We will enhance our enforcement capability to deter poor controls or criminal behavior in the industry. MAS is resolved to ensure that Singapore remains a clean and trusted financial center," said Ravi Menon. Endit