Partial Commencement of AML Act from 14 Nov 2024 to Enhance Prosecution of ML Offences, Align AML/CFT Framework for Casino Operators with FATF Standards

On 13 November 2024, the Ministry of Home Affairs (“MHA“) announced that the Anti-Money Laundering and Other Matters Act 2024 (“AML Act“), passed in Parliament on 6 August 2024, will partially commence with effect from 14 November 2024, with the remaining provisions to come into force at a later date. The key amendments are highlighted below.

Enhance the ability of Law Enforcement Agencies (“LEAs”) to pursue and prosecute money laundering (“ML”) offences

  1. Enhance levers to prosecute ML cases arising from criminal conduct abroad: The AML Act amends the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 (“CDSA“) to provide that, for the purposes of proving certain offences in the CDSA, it is not necessary for the Prosecution to prove as a physical element of the offence that certain property is in fact the benefits of drug dealing or the benefits from criminal conduct (as the case may be).
  2. Designate foreign environmental crimes as ML predicate offences: The AML Act amends the CDSA to introduce a new definition of “foreign serious offence” to include any offence specified in a new Third Schedule to the CDSA, setting out various “serious foreign environmental offence[s]” (e.g. illegal mining, waste trafficking, logging, land clearing, or wildlife trade).
  3. Enable cross-agency data sharing to enhance detection of ML, TF and PF
    • The AML Act amends various legislation (i.e. the Income Tax Act 1947, the Goods and Services Tax Act 1993, the Regulation of Imports and Exports Act 1995, and the Free Trade Zones Act 1966) to enhance the authorities’ abilities to detect ML, terrorism financing (“TF“), and proliferation financing (“PF“). The amendments will allow specified persons in various Government agencies, namely the Inland Revenue Authority of Singapore and Singapore Customs, to share tax data and trade data respectively with Singapore’s Financial Intelligence Unit, the Suspicious Transaction Reporting Office (“STRO“) of the Commercial Affairs Department of the Singapore Police Force, for the purposes of detecting the possible commission of certain specified offences in the CDSA.
    • The AML Act amends the CDSA to allow the STRO to: (i) receive and analyse any information disclosed pursuant to specified sections of such legislation (above); and (ii) communicate to Anti-Money Laundering and Countering the Financing of Terrorism (“AML/CFT“) regulators (such as the Council for Estate Agencies and the Accounting and Corporate Regulatory Authority) any thing disclosed by their respective regulated persons (e.g. suspicious transaction reports), in order to enable the regulator to carry out any of its functions and duties. 

Clarify and improve processes to deal with seized or restrained properties linked to suspected criminal activities

The AML Act amends the Criminal Procedure Code 2010 to provide that:

  1. Where LEAs apply to court for the continued seizure of seized properties, the court must not dispose of the property if it is satisfied that there is any pending investigation: (i) to locate or ascertain the identity of persons entitled to possession of the property; or (ii) into any absconded person reasonably suspected of having committed a relevant offence in connection with the seized property (“Absconded Person“), and the continued seizure will not cause injustice to any person entitled to possession of the property.
  2. In relation to Absconded Persons: (i) they cannot claim to be entitled to the property; and (ii) the court must not make an order relating to the delivery of the property to them unless they attend personally before the LEAs for an investigation into the relevant offence.
  3. In determining whether a person is entitled to property or to possession of property, the court may consider whether the person acquired the property through legitimate sources.
  4. If a person alleges that the property was a gift from an Absconded Person, this fact is relevant but insufficient without other evidence to prove entitlement.
  5. The court may consider other evidence relating to the circumstances in which the gift was made or whether the property was purchased through legitimate sources before it was gifted.

Align AML/CFT framework for casino operators with Financial Action Task Force (“FATF”) standards

The AML Act amends the Casino Control Act 2006 to:

  1. Require casino operators: (i) in specified circumstances, to perform customer due diligence (“CDD“) measures as may be prescribed in regulations to detect or prevent PF risks (in addition to ML and TF risks); and (ii) to conduct such CDD measures specifically when they have a reasonable suspicion that a patron is engaged in PF (in addition to ML or TF).
  2. Lower the quantum for when such CDD measures are required. Single cash transactions or deposits involving S$4,000 or more will now be covered (lowered from the current thresholds of S$10,000 or more for single cash transactions, and S$5,000 or more for deposits).
  3. Empower the Gambling Regulatory Authority to issue regulations on the requirements to detect or prevent PF (in addition to ML and TF).

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