Singapore Bill Would Make It Easier to Prosecute AML Cases

Lawmakers in Singapore have tabled a new bill that would reinforce the country’s anti-money laundering measures. Coming in the wake of a highly controversial online gambling case, the bill would make it easier to sentence wrongdoers.

Under the new rules, authorities will no longer be required to catalog evidence overseas. For context, authorities must currently show a complete trail of the money, making it much more difficult to prosecute wrongdoers.

Under the bill, prosecutors would instead need to prove that the defendant was aware that they were dealing with illegal proceeds.

The Ministry of Home Affairs praised the measure, saying that it would allow authorities to more easily prosecute money mules who launder cash through intermediate bank accounts.

The Recent Money Laundering Case Was a Wake-Up Call

As mentioned, the new measure comes in the wake of a money laundering scandal from August 2022. The 10 individuals involved in the case used illegal online gambling and scamming operations to launder criminally acquired proceeds and live in luxury.

The case in question led to the arrests of ten people and the seizing of $2.21 billion (converted to USD, current rates) in cash, properties and luxury cars. The last of the ten people involved in the operation was sentenced last month.

Despite its negative impact, the illegal operation served as a wake-up call to the Singaporean authorities, prompting a more serious crackdown on money laundering and improvements to the AML/CTF framework.  

In addition, the government created and Inter-Ministerial Committee to oversee the AML measures. The committee is set to share a set of AML-related recommendations later this year.

All new measures, including the new bill, seek to protect Singapore from financial crime. As criminals find new ways to circumvent the law, authorities must remain ever-vigilant in their efforts to identify fraud.

Speaking of AML efforts, a recent Singapore government report jointly issued by the Ministry of Home Affairs, the Ministry of Law, and the Monetary Authority of Singapore, said that the local casino industry carries a “moderate risk” of being exploited for money laundering purposes.

The report pointed out that there is no evidence to directly point to casinos’ involvement in financial fraud, the cash-rich nature of such establishments makes them likely targets for fraudsters.