SINGAPORE - Anti-money laundering efforts in Singapore saw the authorities seize $6 billion linked to criminal and money laundering activities between January 2019 and June 2024.
About $416 million has been returned to victims, while $1 billion has been forfeited to the state. A large bulk of the remaining sum is linked to ongoing investigations or court proceedings.
The details were published in Singapore’s first-ever National Asset Recovery Strategy, which Prime Minister Lawrence Wong announced on June 26 at the opening of the Financial Action Task Force (FATF) Plenary Meeting.
PM Wong said Singapore has made asset recovery a priority in its national anti-money laundering regime.
The approach sets out how Singapore will deprive criminals of their illicit funds and assets, remove the financial incentives for criminals to launder their illicit proceeds in Singapore, and return these assets to victims.
Through the collective efforts of the money laundering watchdog FATF and its partners, PM Wong said Singapore has made progress against money laundering and terrorism financing at the global level.
“But the success of the global effort against financial crime is also dependent on effective implementation within national borders.
“Singapore is fully committed to doing our part. As an international financial and business hub, we recognise that we face greater money laundering and terrorism financing risks.
“But we are determined to do what is needed to respond to these risks and safeguard Singapore’s reputation as a trusted financial centre,” he said at the event held at the Marina Bay Sands Expo and Convention Centre.
PM Wong said virtual assets and digital payment channels have made it easier for criminals to move and hide their illicit proceeds, and to operate across borders while exploiting the information silos that exist between national law enforcement agencies.
“No country can address these threats by itself. That is why the FATF’s work in leading a coordinated global effort has become more important,” he added.
Over two days, the FATF, the global money laundering and terrorism financing watchdog, will lead sessions attended by delegates from the World Bank, International Monetary Fund, United Nations and other international organisations.
PM Wong highlighted FATF’s progress in recent years in tackling three challenges – the interception of illicit funds; improving transparency of legal entities, such as companies and trusts; and in identifying ways to break down information silos.
Citing Interpol figures, he said around US$2 trillion to US$3 trillion (S$2.7 trillion to S$4.06 trillion) worth of illicit proceeds are channelled through the global financial system annually.
“A very small fraction of these criminal assets is intercepted and recovered, which means that criminals can largely get away with, and profit handsomely from, their crimes,” he added.
PM Wong noted that the latest figures from Interpol showed that the recovery rate from illicit funds is a low 3 per cent, up from 1 per cent a decade ago.
“We need to do better. But at least we are moving in the right direction, and we can aim for even higher recovery rates in the years to come,” he added.
PM Wong said Singapore has continually reviewed and strengthened its legal frameworks to align them with FATF’s standards.
“Over the past few years, we have tightened our regulations to increase transparency on beneficial ownership, introduced new regulations, and strengthened existing laws to address risks related to virtual assets, as well as precious stones and metals dealers.
“We have also strengthened our laws to give our law enforcement agencies more tools and powers to pursue, prosecute and sanction offenders for money laundering offences,” he added.