The Singapore government has embarked on a bold step by forming an inter-departmental committee comprising members from key ministries including MAS [Monetary Authority of Singapore], MHA [Ministry of Home Affairs], MinLaw [Ministry of Law], MOM [Ministry of Manpower], and MTI [Ministry of Trade and Industry]. The committee’s primary mandate is to strengthen anti-money laundering measures. This move is expected to have a significant impact on crypto assets, aligning with the global trend of increased scrutiny of digital currencies and transactions.
In a comprehensive statement recently delivered to Parliament, the government highlighted a three-pronged strategy, encompassing prevention, detection, and enforcement specifically focusing on the real estate and corporate sectors. This comes after Singapore investigated one of its biggest cases of suspected money laundering, in which the value of assets seized stood at over $2 billion.
The seized assets include 152 properties, 62 vehicles, thousands of bottles of liquor, cryptocurrencies, gold bars, and jewelry. In addressing anti-money laundering safeguards in the real estate sector, the Minister highlighted the role of gatekeepers, such as property agents, and developers. He explained the Customer Due Diligence [CDD] checks and the importance of reporting suspicious transactions to the Police.
Singapore’s MAS Defends Crypto Access to FAST System
Moving to the corporate sector, the Singapore minister emphasized putting additional measures for foreign-owned companies, like inquiring into the legitimacy of the entity’s purpose. Moreover, the government has taken steps to ensure the identification of beneficial owners, enhancing transparency and aiding law enforcement agencies in their investigations.
In the realm of digital assets, Singapore has granted operational licenses to cryptocurrency enterprises demonstrating robust AML controls. Some of the leading players that have recently secured full MPI licenses include San Francisco-based blockchain firm Ripple, crypto exchange Coinbase, and Swiss digital asset bank Sygnum.
Not long ago, a letter in the Financial Times criticized Singapore for allowing virtual asset firms access to the Fast and Secure Transfers [FAST] interbank payment system. Despite the criticism, MAS defended its decision, stating that any entity with a valid banking infrastructure, including crypto businesses, can use the FAST system. MAS firmly denied any connection between the increase in malware scams in Singapore and the cryptocurrency sector. They contended that these scams are more common in the fiat economy, emphasizing that cryptocurrencies are not inherently more vulnerable to fraud than traditional financial systems.