6. Other relevant matters
a. Anti-money laundering rules
Singapore benchmarks itself against international best practices
including, in particular, the recommendations set by the Financial
Action Task Force (FATF). Singapore is also one of the founding
members of the Asia-Pacific Group on Money Laundering, one of
FATF’s regional groups.
The main legal sources of Singapore’s regime to prevent money
laundering and the financing of terrorism are contained in: (a) the
Corruption, Drug Trafficking and other Serious Crime
(Confiscation of Benefits) Act 1993, as amended (b) the
Terrorism (Suppression of Financing) Act 2002; (c) the
Monetary Authority of Singapore Act, and various Freezing
of Assets Regulations made thereunder (d) the Monetary
Authority of Singapore (Anti-Terrorism Measures) Regulations
2002; (e) the United Nations Act 2001 and the
United Nations (Anti-Terrorism Measures) Regulations 2001.
These are provisions of general application that apply to all
persons in Singapore.
The Monetary Authority of Singapore (MAS) has, in addition,
pursuant to the Monetary Authority of Singapore Act issued
sector-specific notices and guidelines to banks, merchant banks,
money changers, finance companies, life insurers, financial
advisors, capital markets services licensees, approved trustees and
trust companies. These prescribe their obligations with respect to
customer due diligence, disclosure of suspicious transaction
reports and internal control policies and procedures. Trust
companies are subject to Notice TCA-N03 and to guidelines. These
may be accessed at the MAS website.The Corruption, Drug
Trafficking and Other Serious Crimes (Confiscation of Benefits)
Act criminalises money laundering of benefits derived from 360
listed predicate offences, and provides for the confiscation of
these benefits.
b. Regulation of trust companies
The Trust Companies Act, which came into force on 1
February 2006, regulates trust service providers in Singapore. No
person may carry on any trust business or hold themselves out as
carrying on any trust business in or from Singapore unless that
person is a trust company licensed by the MAS. Requirements and
qualifications for holding a licence are set out in the Act and in
regulations, guidelines and directions made under it. Certain
persons, including bankers, lawyers and accountants, are exempt in
relation to certain matters. Licensed trust companies must have at
least two resident managers who have various statutory
responsibilities. They must ensure compliance with written
policies, which must be drawn up on all operational areas of the
company. A trust company outside Singapore engaging in trust
business in Singapore is also subject to the new regime, apart from
a narrowly defined set of circumstances. Trust companies are
regulated by the MAS over a wide range of issues under the
Trust Companies Act and are subject to specific rules in
respect of the prevention of money laundering and countering the
financing of terrorism under the Monetary Authority of
Singapore Act and notices and guidelines issued
thereunder.
c. Exchange of information
On 6 March 2009, the Ministry of Finance issued a press
statement to the effect that Singapore has decided to endorse the
Organisation for Economic Co-operation and Development (OECD)
Standard for the effective exchange of information through
avoidance of double taxation agreements (DTAs). ‘To implement the
Standard, Singapore will introduce draft legislative amendments in
the middle of 2009, before tabling the amendments in Parliament for
approval.’ Following the amendments, Singapore will, according to
the Ministry of Finance statement, be able to extend further
cooperation on information exchange through its DTAs, and hopes to
negotiate and conclude further DTAs. Singapore will implement the
Standard, the statement indicates, ‘through our DTAs to assist on
bona-fide requests for information rather than information
fishing’.