Singapore MAS Tharman Shanmugaratnam: Money Laundering Schemes Have Become Increasingly Complex & Difficult to Detect Globally, MAS & Police Working with Banks to Prevent Bank Accounts from Being Used for Scams & Criminal Activities
25th February 2023 | Singapore
Singapore central bank Monetary Authority of Singapore (MAS) Tharman Shanmugaratnam (Senior Minister & Minister in charge of MAS) reply to questions on money laundering & mule accounts (3rd party bank accounts used by scammers). MAS Tharman Shanmugaratnam: “As with all major financial centres, Singapore intermediates sizeable global fund flows and is exposed to similar risks of cross-border money laundering and terrorist financing (“ML/TF”). In recent years, ML/TF schemes have also become increasingly complex and difficult to detect globally, as criminal syndicates exploit technology to hide their tracks. Tackling these risks therefore requires close surveillance in partnership with the industry and international partners … … Given the rise in the number and severity of scams in recent years, MAS and the Singapore Police Force (SPF) have worked with banks to incorporate an advisory to applicants at account opening. The advisory warns applicants that bank accounts should only be for their own use and that they may be facilitating criminal activities if they allow others to operate their accounts.” See below for MAS statement
“ Singapore MAS Tharman Shanmugaratnam: Money Laundering Schemes Have Become Increasingly Complex & Difficult to Detect Globally, MAS & Police Working with Banks to Prevent Bank Accounts from Being Used for Scams & Criminal Activities “
MAS Tharman Shanmugaratnam on Money Laundering & Mule Accounts
Reply to Parliamentary Questions
23rd Feb 2023 – To ask the Prime Minister how is MAS working with international partners and financial institutions to tackle cross-border money laundering.
Answer by Mr Tharman Shanmugaratnam, Senior Minister and Minister in charge of MAS:
1. As with all major financial centres, Singapore intermediates sizeable global fund flows and is exposed to similar risks of cross-border money laundering and terrorist financing (“ML/TF”). In recent years, ML/TF schemes have also become increasingly complex and difficult to detect globally, as criminal syndicates exploit technology to hide their tracks. Tackling these risks therefore requires close surveillance in partnership with the industry and international partners.
2. MAS taps on information from a wide range of sources to detect suspicious financial activities, including reports filed by financial institutions (“FIs”) and intelligence from our overseas counterparts. Data analytics techniques such as network link analysis are deployed to sift out unusual patterns of activity, thereby allowing us to more swiftly identify and mitigate emerging risks.
3. An example of active collaboration on anti-money laundering and countering the financing of terrorism (“AML/CFT”) is the AML/CFT Industry Partnership (“ACIP”)ACIP is a private-public partnership, which was established in April 2017. It is co-chaired by MAS and the Commercial Affairs Department (CAD) and is supported by a steering group comprising nine banks and the Association of Banks in Singapore (ABS). The ACIP steering group is supported by Working Groups which will look into specific risk areas and topics relevant to ML/TF.. ACIP is co-chaired by MAS and the Singapore Police Force’s Commercial Affairs Department and brings together key FIs to share analyses of emerging ML/TF risks as well as information on specific cases. These proactive efforts have led to the identification and investigation of suspicious accounts and activities. ACIP has issued advisory notes and best practices papers to help improve AML/CFT practices across the industry to strengthen collective defences.
4. MAS also collaborates closely with our international counterparts to combat cross-border crime. Singapore has in place a legal framework and information sharing mechanisms that are in line with international standards set out by the Financial Action Task Force (FATF). MAS proactively exchanges relevant information with its international counterparts to surface suspicious cross-border flows and activities so that it can take the appropriate mitigating measures.
23rd Feb 2023 – To ask the Prime Minister how does MAS ensure that banks do their due diligence and investigate and interview new clients who wish to open accounts so as to prevent mule accounts for scams.
Answer by Mr Tharman Shanmugaratnam, Senior Minister and Minister in charge of MAS:
1. MAS requires all banks operating in Singapore to put in place robust controls to detect and deter the flow of illicit funds, including the use of mule accounts for scam activities. These controls include rigorous processes to identify customers, understand the intended purpose of account opening, evaluate the risks posed, and monitor the accounts on an ongoing basis for suspicious activity.
2. Given the rise in the number and severity of scams in recent years, MAS and the Singapore Police Force (SPF) have worked with banks to incorporate an advisory to applicants at account opening. The advisory warns applicants that bank accounts should only be for their own use and that they may be facilitating criminal activities if they allow others to operate their accounts.
3. MAS has encouraged banks to use data analytics to improve their ability to detect mule activities, and has promoted the sharing of emerging mule typologies across the industry. These efforts have led to greater industry awareness and action, and contributed to credible intelligence being shared with law enforcement agencies for their investigations. For example, a collaboration in July 2022 between the SPF’s Commercial Affairs Department and a bank led to the detection and investigation of 26 persons who allowed their bank accounts or Singpass credentials to be misused for illicit purposes.
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