Written reply to Parliamentary Question on breach of anti-money laundering and anti-terrorism financing rules, and Wirecard scandal

In a recent parliamentary sitting, the Prime Minister of Singapore was asked about the number of investigations conducted in the past five years in connection with violations of anti-money laundering and anti-terrorism financing regulations, the specific number of these investigations that are connected to the Wirecard scandal, and the preventive measures implemented by MAS to reduce instances of anti-money laundering after the Wirecard scandal.
In its response, Mr. Tharman Shanmugaratnam, Senior Minister and Minister in charge of the Monetary Authority of Singapore (MAS), notes the following on behalf of the Prime Minister:
– MAS has stringent requirements imposed on financial institutions (FIs) and actively supervises FIs to ensure compliance with international standards for Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations.
– From June 1, 2018 to June 23, 2023, a total of 20 investigations were launched against FIs for suspected breaches of AML & CFT requirements.
– Enforcement actions were taken against 17 FIs, including the revocation of one FI’s license. Composition penalties were imposed on 14 FIs, which include four cases related to the Wirecard scandal. Reprimands were issued to two FIs.
– MAS had already conducted inspections focusing on FIs‘ controls against the misuse of legal persons before the Wirecard scandal emerged. These inspections highlighted the need for stronger controls, and FIs were already in the process of enhancing their measures.
– Collaboration between FIs, MAS itself, and law enforcement is crucial in combating financial crime. MAS and the Commercial Affairs Department work closely with key FIs to share analysis of emerging risks and information on specific cases. This collaboration has facilitated the identification of suspicious accounts and activities, leading to investigations. The implementation of the COSMIC platform in the second half of 2024 will further enhance information sharing among participant FIs, enabling the earlier detection and reporting of suspicious activities to authorities.