Singapore is among the countries that effectively combat money laundering, financing terrorism, and all other financial crimes. Singapore aims to create a clean and reliable financial system as it is an important international business center. Singapore is an active member of the Financial Action Task Force (FATF). Singapore's AML policies have been developed to comply with global AML standards. Also, Singapore is one of the founding members of the Asia / Pacific Group on Money Laundering.
The Monetary Authority of Singapore (MAS) was established in 1971 to oversee Singapore's financial and banking sectors. Monetary Authority of Singapore (MAS) serves as the central bank and financial regulator. MAS's responsibilities include preventing money laundering and terrorism financing. The monetary authority of Singapore protects the Singapore economy from financial crimes by organizing and controlling financial institutions accordingly.
Organizations should have knowledge of money laundering and crimes of terrorist financing. Organizations' managers must understand the risks posed by financial crimes and take action to organize an effective AML program. Organizations must employ AML officers to maintain AML policies and procedures effectively.
Know Your Customer (KYC) and Customer Due Diligence procedures are the basis of an organization's AML policies. Organizations must have the necessary information on their customers before mediating the transactions of new customers. This information allows determining who the customer is. The accuracy of customer information is very important. If customer information is wrong, organizations may face big problems. After the customer information is verified, Customer Due Diligence procedures are applied to determine the customer's risk level. One of the Customer Due Diligence procedures is whether the customer is a PEP. Enhanced Due Diligence is applied if the customer risk level is determined to be high.
Organizations have to regularly check customers 'accounts and customers' financial transactions. At this stage, it is checked whether the customer risk level and customer financial transactions are compatible. Organizations have to check high-risk customers more often.
Suspicious transactions are transactions that are unusual and do not comply with the risk profiles of customers. Suspicious transactions carry a financial crime risk, so AML officers play an important role in detecting and reporting suspicious transactions. Suspicious Activity Reports are reported to the Commercial Affairs Department of Singapore.
Sanction Scanner is an AML compliance software. Sanction Scanner provides Sanction & PEP screening services. Organizations in Singapore can meet AML requirements with the Sanction Scanner. You can contact us for information about our AML compliance solutions.