Minister Josephine Teo Emphasizes a Risk-Based Approach to Maintain Attractiveness for Investors
In a bid to strengthen Singapore’s anti-money laundering (AML) regime, Second Minister for Home Affairs, Josephine Teo, addressed concerns in Parliament on August 6, 2024, about the potential impact of new legislation on the country’s competitiveness. Teo assured that while the government remains committed to preventing and detecting money laundering, it will continue using a risk-based approach that avoids undue hindrance to legitimate business activities.
The newly passed Bill enhances the powers of law enforcement agencies to prevent and tackle money laundering. Teo emphasized that the aim is not to scrutinize every transaction but to focus on “instances of concern.” The Bill also proposes improvements in the handling of seized properties, including allowing the sale of seized assets when they risk depreciation or become too costly to maintain.
Several Members of Parliament, including Foo Mee Har and Edward Chia, expressed concerns that the new measures could stifle investment. They highlighted that some businesses had faced excessive compliance burdens, such as delayed account openings and disproportionate documentation requests from banks. Teo responded by reassuring that Singapore’s business-friendly environment would remain intact, and these changes would only make the anti-money laundering framework more robust and effective.
Additionally, the Bill introduces amendments that will make it easier for law enforcement to handle seized properties, including those connected to money laundering, and strengthens provisions for dealing with absconded suspects. It also designates foreign environmental crimes as predicate offenses for money laundering, allowing for broader investigations.
Teo concluded by reinforcing that these updates are part of an ongoing effort to strengthen the financial ecosystem while ensuring that legitimate business activities are not unduly impacted.
