Source of article: The Business Times
In summary:
The startling money-laundering arrests in Singapore on 15 August 2023 should not evoke a cathartic knee-jerk response to churn out more legislations and prescriptive regulations. It is important to view things in perspective. No country has an impenetrable “iron dome” of laws and regulations that can effectively shield its market from money-laundering activities. The appropriate response should be to review and assess the adequacy and robustness of the existing legal and regulatory framework in the light of recent transgressions, and not to keep tightening the regulatory noose as the default reaction.
ACRA’s proposed amendments to the Corporate Service Providers (“CSP”) Bill, is in my view, the correct targeted response.
CSPs, property agents and various professionals who are tardy or flippant with their statutory obligations to conduct proper AML and KYC checks, and where necessary, to file STRs, should be taken to task.
These compliance requirements have been stipulated in Singapore’s existing laws and regulations for some time. Miscreants who have been lackadaisical in adhering to the regulatory guardrails are the fundamental cause that have resulted in the disquieting egregious money-laundering activities that led to the dragnet on 15 August 2023.
The recent episode highlights the importance that there should be no let-up for CSPs, director nominees and all and sundry who are at the forefront of transactional activities with foreigners to be constantly alert to the potential devious ways and means where funds originating from foreign sources, and commercial transactions that do not appear to have any rational basis, can be “white-washed”. In this respect, companies should ensure that as part of its corporate governance and internal controls, proper systems and processes must be put in place to safeguard the company and its employees from being unwittingly involved or complicit in money-laundering activities and schemes.
The importance of constantly educating all front-line staff and employees who are involved in business transactions on the best practices and controls for AML and countering of terrorist financing activities, cannot be over-emphasised.
I applaud Megan Cheah for her par excellence story in the attached Singapore Business Times article published on 1st November 23.
My post on LinkedIn is here