Minister Emphasizes Need for Due Diligence in Fundraising Amid Money Laundering Concerns
Charities in Singapore are expected to implement stronger safeguards to prevent their funds from being misused for illicit purposes, said Minister of State for Trade and Industry Alvin Tan in Parliament.
He emphasized that charities must exercise vigilance when accepting donations, particularly from unknown sources, and should be cautious if donors request that funds be redirected to third parties for purposes inconsistent with the organization’s mission. These warnings come amid Singapore’s ongoing S$2.8 billion money laundering investigation.
Tan clarified that charities are legally obligated to file suspicious transaction reports if they suspect that a donation is linked to criminal activity. Additionally, charities should conduct due diligence checks on donors, especially when receiving substantial sums from unfamiliar sources.
Addressing parliamentary questions, Second Minister for Home Affairs Josephine Teo revealed that some individuals involved in the massive money laundering probe had previously made donations to Singaporean charities. While some charities have proactively ringfenced these funds, others have reported them to authorities and intend to surrender the money to the police.
The Commissioner of Charities will issue an advisory urging charities to review donor records for any links to the arrested individuals or their entities. Charities will also receive guidance on handling questionable funds, ensuring compliance with anti-money laundering regulations.
Singapore continues to tighten financial oversight, with upcoming proposals aimed at strengthening regulations on corporate service providers and limiting nominee directorships to prevent financial crimes.
