12 October 2012

A broad range of serious tax crimes will be designated as money laundering (ML) predicate offences from 1 July 2013. MAS has since issued a consultation paper that proposes an implementation framework of essential elements that financial institutions (FIs) should observe to comply with the new requirements.

Financial institutions must apply the full suite of the Anti-Money Laundering/Countering the Financing of Terrorism measures as contained in the relevant MAS Notices, to prevent the laundering of proceeds from serious tax crimes. This involves the conduct of rigorous customer due diligence and transactions monitoring, as well as, proper reporting of suspicious transactions. FIs must adequately identify and assess tax related risks and take action to appropriately manage and mitigate those risks.

The Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act will be updated to include the designated offences.

The consultation paper is available on the MAS website. Feedback should reach MAS by 9 December 2012.

Source: Monetary Authority of Singapore (MAS)