The Anti-Money Laundering Act (AMLA) in Singapore refers to a set of laws and regulations designed to combat money laundering and the financing of terrorism within the country. The AMLA establishes the legal framework and requirements for various entities, including financial institutions and designated non-financial businesses, to prevent and detect activities related to money laundering and terrorism financing.
The primary law in Singapore relating to money laundering is the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA). Sections 43, 44, 46, and 47 of the CDSA cover the prevention of money laundering and its criminalization.
Key features of the Anti-Money Laundering Act in Singapore include:
- Customer Due Diligence (CDD): Financial institutions and designated businesses are required to conduct customer due diligence procedures when establishing business relationships or conducting occasional transactions. This involves verifying the identity of customers, understanding the nature of their transactions, and assessing the potential risk of money laundering or terrorism financing.
- Suspicious Transaction Reporting: Entities covered by the AMLA are obligated to report any suspicious transactions or activities that could be indicative of money laundering or terrorism financing to the relevant authorities, such as the Suspicious Transaction Reporting Office (STRO) of the Commercial Affairs Department (CAD).
- Record Keeping: Covered entities must maintain records of transactions and customer information for a specified period. This enables authorities to review and monitor financial activities for compliance and investigative purposes.
- Freezing of Assets: The AMLA provides authorities with the power to freeze assets suspected to be linked to money laundering or terrorism financing, thereby preventing their use until further investigation is conducted.
- International Cooperation: The AMLA enables Singapore to cooperate with international authorities and share information to combat cross-border money laundering and terrorism financing.
- Penalties and Enforcement: The AMLA establishes penalties for non-compliance, including fines and imprisonment for individuals or entities that fail to meet their obligations under the act.
- Reporting of Cross-Border Movement of Currency and Bearer Negotiable Instruments: The AMLA also requires individuals entering or leaving Singapore to declare the movement of currency or bearer negotiable instruments exceeding a specified threshold.