On 20 March 2023, the Ministry of Finance (“MOF“) announced that it is proposing legislative amendments to the Free Trade Zones Act 1966. The amendments will update and strengthen the free trade zone (“FTZ“) regime and thereby support Singapore’s position as a trusted global trade hub by: (i) enabling the better detection, deterrence and prevention of money laundering, associated predicate offences and terrorism financing; and (ii) protecting Singapore’s financial system against illegal activities and illicit fund flows.
This Update provides a summary of the key changes proposed in the draft Free Trade Zones (Amendment) Bill (“Bill“), which include: (i) the proposed requirements for licensed FTZ operators, licensed FTZ cargo handlers, shipping agents and air cargo agents; and (ii) the proposed regulatory and enforcement regime.
MOF is seeking comments on the draft Bill. The draft Bill is released only for the purpose of the public consultation and does not represent the final legislation. The public consultation is open till 9 April 2023. As the draft Bill will introduce significant changes that will affect industry players, we recommend carefully reviewing the draft Bill and providing comments or concerns, if any, to MOF.
For more information, click here to read the full Legal Update.
