Overview of AML/CFT

Overview of Singapore's Anti-Money Laundering/Counter-Financing of Terrorism (AML/CFT) Framework

Money laundering (ML) can be defined as the process whereby criminals introduce the proceeds of their criminal activities into the world's financial system in an attempt to disguise the true source of the funds. These funds may be proceeds from drug trafficking or other serious crimes. The laundering of tainted funds in this manner allows the criminals to use their "dirty money" without fear of detection or prosecution.

Closely linked to money laundering is terrorism financing (TF). In terrorism financing, funds may originate from legitimate or criminal sources. However, the techniques used to conceal the sources and uses of the terrorists' funds are similar to ML.

Singapore is keenly aware of the significant harm that ML and TF can bring. As a major financial centre in this region, Singapore has put in place measures to ensure that we are not a safe haven for money launderers and terrorism financiers.

Robust AML/CFT legislation
Close Partnership with the business community
Strict enforcement action and ongoing supervision
Active International Cooperation

These measures form Singapore's AML/CFT framework where everyone plays an important role in combating ML and TF and help build and maintain Singapore's strong reputation as a well-regulated major financial centre.

The Financial Investigation Division of CAD is the specialist AML/CFT division in CAD. It enforces the AML/CFT regime through the detection of ML/TF activities, investigation and prosecution of ML/TF offences and in the seizure and confiscation of illegal proceeds. These functions are undertaken by the 3 branches in FID:

AML/CFT Handbook