Login
Contact Sales
Login
CONTACT SALES

Understanding AML Compliance in Singapore

Key Regulations, Authorities, and Compliance Strategies in Singapore’s Financial Sector. Discover the essential elements of Singapore’s AML framework, including major regulations and the roles of regulatory bodies

How AML Regulations are Handled in Singapore

Singapore’s AML framework is established through several key legal documents, including a federal act and ordinances. The key components are:

Anti-Money Laundering Act (AMLA):  This federal act applies to financial intermediaries and outlines the responsibilities for combating money laundering and terrorist financing, emphasizing due diligence in financial transactions​​.

Anti-Money Laundering Ordinance: This ordinance details the requirements for professional financial intermediation practice, including due diligence obligations and reporting duties​​.

FINMA Anti-Money Laundering Ordinance (AMLO-FINMA): Issued by the Swiss Financial Market Supervisory Authority (FINMA), this ordinance specifies how financial intermediaries should fulfill their obligations to prevent money laundering and terrorist financing​​​​.

For more information on these laws and their implementation, you can visit the FINMA website.

Industries Impacted by AML Regulations

In Singapore, AML regulations apply to a diverse range of sectors. Key financial entities such as banks, investment firms, and insurance companies are covered. Non-financial businesses and professions, including real estate agents, accountants, and legal service providers, also fall under these regulations, ensuring comprehensive oversight and management of money laundering and terrorist financing risks across different industries.

Compliance Requirements for Businesses

Swiss businesses, within and outside the financial sector, are required to implement a risk-based AML program. This includes customer identification, extensive due diligence, and ongoing monitoring of transactions. Firms must also keep precise records, report any suspicious activities, and maintain strong internal controls. Regular AML training for employees is essential for effective risk management related to money laundering and terrorist financing.

Who do AML regulations apply to?

In Singapore, AML regulations apply to a broad range of businesses including:

Credit Unions

Financial Services

Fintech

Real Estate

Mortgages

Community Banks

Tokenization

General Industries

Accounting Firms

Legal

Crypto

Insurance

What Business Need for AML Compliance

For AML compliance in Singapore, businesses need to:
Risk Assessment: Swiss businesses must regularly assess risks of money laundering and terrorist financing pertinent to their operations.
AML Policies and Procedures: Develop and implement AML policies and internal controls aligned with the business’s risk profile and Swiss regulatory standards.

Customer Due Diligence (CDD): Establish processes for accurate customer identification and verification, and understanding of their business activities.

Enhanced Due Diligence (EDD): Apply extra scrutiny to high-risk customers, including PEPs and individuals from high-risk countries.
Monitoring and Reporting: Continuously monitor transactions for suspicious activities and report these to Swiss authorities.
Record Keeping: Maintain detailed records as required by Swiss law.
Training: Provide regular AML training to employees

Implementing an Effective AML Program in Singapore

Organizations in Singapore can implement an effective AML program by:
Conducting a Risk Assessment: Evaluating money laundering and terrorist financing risks related to their activities and sectors.
Developing Policies and Procedures: Establishing comprehensive policies and procedures for identified risks, including customer due diligence and transaction monitoring.
Designating a Compliance Officer: Appointing an experienced officer to oversee the AML program and ensure compliance with Swiss regulatory standards.
Providing Regular AML Training: Offering ongoing training to employees on AML regulations and detection and reporting methods
Performing Consistent Reviews and Updates: Continuously updating the AML program to align with changes in legislation and best practices.
These steps are essential for Swiss organizations to fulfill their AML responsibilities and safeguard against financial crimes.

Reporting Requirements in Singapore

In Singapore, firms must adhere to specific AML reporting requirements:
Suspicious Activity Reports (SARs): Businesses must file SARs with Singapore’s Money Laundering Reporting Office (MROS) when they suspect money laundering or terrorist financing activities.
Currency Transaction Reports (CTRs): Swiss regulations require the reporting of large transactions, particularly those involving cash or other assets, which may appear suspicious.
Record Keeping: Swiss AML laws require firms to maintain comprehensive records of customer transactions and due diligence efforts for a legally defined period.

For more information on Singapore’s AML reporting requirements, refer to the Swiss Financial Market Supervisory Authority (FINMA) and Money Laundering Reporting Office Singapore (MROS) websites.

AML Regulators in Singapore

In Singapore, the main regulatory bodies for AML activities are:

Swiss Financial Market Supervisory Authority (FINMA): FINMA is responsible for ensuring AML compliance within the financial sector. It adopts a risk-based approach and possesses extensive supervisory and investigatory powers.

Money Laundering Reporting Office Switzerland (MROS): As part of the Federal Office of Police, MROS plays a pivotal role in analyzing and processing Suspicious Transaction Reports (STRs) and coordinates with both national and international authorities in combating money laundering and terrorist financing.

These entities collectively uphold AML standards and address financial crimes in Singapore.

Need up-to-date news about regulations and
enforcement actions?

Subscribe to regwatch

iComplyKYC™ Modules

AML Risk Screening

Comprehensive screening for Adverse Media, PEPs, and Sanctions

Learn More

Corporate Onboarding

Streamlined, efficient onboarding for legal entities

Learn More

Document Verification

Robust verification of key documents

Learn More

Biometrics & Liveness

Advanced biometric and liveness verification for enhanced security

Learn More

Identity Verification

Comprehensive and reliable identity verification process

Learn More

How iComply helps Canadian
businesses stay compliant

Compliance

Stay compliant with KYC and AML regulations in 249 jurisdictions, reducing the risk of fines and reputational damage while prioritizing transparency, privacy, and trust for your stakeholders.

Efficiency

Streamline KYC processes and enhance operations while maintaining compliance—be part of building a trusted, secure digital ecosystem empowering people, businesses, and communities.

Customer

Deliver a superior customer experience through frictionless onboarding, clear communication, and enhanced security based on iComply’s core values of trust, accountability, and privacy.

Discover the Power of iComplyKYC™’s software

Ready to take advantage of our complete KYC and AML solution for banking? Contact us today to schedule a demo and learn more about how iComplyKYC™  can help your business stay compliant and secure.

Book a Demo