Tightening Measures to Prevent Money Laundering Risks in the Sector
In light of Singapore’s largest money-laundering investigation, the Monetary Authority of Singapore (MAS) has announced a review of its tax incentive process for single family offices (SFOs). This follows concerns that certain individuals linked to the case may have benefited from SFO tax incentives. Minister Alvin Tan clarified that no adverse information about these individuals or entities had been raised at the time of their application.
As part of the review, MAS is looking to tighten its internal incentive administration process, strengthening the oversight of SFOs. In July, MAS proposed a new framework to harmonize the class exemption criteria for all SFOs, ensuring they are subject to anti-money laundering regulations.
Additionally, MAS plans to launch the Cosmic platform in late 2024, enabling financial institutions to share money-laundering and terrorism financing information, improving surveillance and defense against financial crimes. While the platform will not extend beyond the financial sector, it aims to enhance the effectiveness of Singapore’s financial crime prevention strategies.
