30 Mar 2019
Mr President,
1. I thank you for convening this Open Debate. At the outset, my delegation conveys its deepest condolences to the bereaved families of the victims of recent terrorist attacks. This debate is therefore timely to redouble our commitment to fight the scourge of terrorism.
Mr President,
2. As an open economy and an international transport hub and financial centre, the inherent risk that Singapore faces as a potential transit point for illicit funds is high. We have therefore always strived to do our part in the global effort against terrorism financing. In our view, there are three key elements to a strong regime to counter the financing of terrorism.
Good Governance
3. First, there must be good governance. Given the cross-sectoral nature of terrorism financing, Singapore adopts a whole-of-government approach to put in place a strong legal, institutional, policy and supervisory framework. We established a high level Steering Committee on anti-money laundering and terrorism financing in 1999, comprising senior officials from the Ministry of Home Affairs, Ministry of Finance, and Monetary Authority of Singapore. The Steering Committee has oversight of and drives the development of national policies for terrorism financing, and ensures that our systems, mechanisms, and controls adhere to the latest international standards and best practices.
4. Singapore has strong laws and regulations to protect our financial system from exploitation. Our domestic legislation enables our enforcement authorities to take swift action against terrorists, terrorist entities and their supporters, including financiers of terrorism. In particular, the Terrorism (Suppression of Financing) Act (TSOFA) was enacted in 2002 to give effect to the UN International Convention for the Suppression of the Financing of Terrorism, and United Nations Security Council Resolution 1373 (2001). The TSOFA criminalises the provision of property and services for terrorist purposes, and confers powers to seize and confiscate terrorist property.
5. It is just as important for Singapore to keep pace with the increasingly sophisticated activities of terrorist financiers. We regularly review our legislative levers to ensure that our regime for countering the financing of terrorism (CFT) remains effective. In November 2018, we passed the Serious Crimes and Counter Terrorism (Miscellaneous Amendments) Act in Parliament. The key changes were to: (a) expand the prohibition of financing terrorism-related activities to include terrorism training; (b) increase the penalties for failing to disclose to the authorities information relating to terrorism financing; and (c) enable our Financial Intelligence Unit to share information with members of the Egmont Group.
6. To deal with money laundering and terrorism financing risks from the precious stones and metals dealers sector, we passed the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act in Parliament just last month. Singapore has also passed the Payments Systems Act to tackle similar risks from the use of virtual assets. In addition, we will put in place a suite of anti-money laundering and countering financing of terrorism (AML/CFT) rules that are consistent with the Financial Action Task Force (FATF) standards.
Industry Partnership
7. Second, there must be active partnerships with the industry. National efforts cannot be driven by the Government alone. Governments must engage the industry and private sector to be better aware of the practical challenges on the ground. This builds a deeper sense of trust and shared ownership, which in turn fosters a stronger culture of compliance.
8. Singapore established the Anti-Money Laundering and Countering the Financing of Terrorism Industry Partnership (ACIP) in April 2017. The ACIP brings together government and private sector stakeholders to identify, assess and mitigate key and emerging money laundering and terrorism financing risks in Singapore.[1] The ACIP has, among other initiatives, produced a paper on adopting data analytics methods for anti-money laundering and countering the financing of terrorism. To strengthen the industry’s understanding and ability to detect terrorism financing, our authorities have shared with the industry a range of TF-specific red-flag indicators and typologies. Such outcomes would not have been possible with the Government acting alone.
International Cooperation
9. Third, we cannot be limited to just a national response. Given the global nature of the terrorist threat, the international community is only as strong as its weakest link. We must work with one another through bilateral, regional and international mechanisms to boost our collective security.
10. Singapore has participated actively in such mechanisms. We have been a member of the FATF since 1992. We are also a founding member of the Asia Pacific Group (APG) on Money Laundering, a FATF-style regional grouping, which was established in 1997. The Suspicious Transactions Reporting Office (STRO), which is Singapore’s Financial Intelligence Unit (FIU), has also been a member of the Egmont Group since 2002. It participates actively in the Financial Intelligence Consultative Group under the regional Counter Terrorism Financing Summit organised by the FIUs of Australia and Indonesia. Our authorities maintain close working relationships with various enforcement and intelligence agencies internationally.
11. The FATF has been a key node contributing to the fight against terrorism and terrorism financing. Its work in identifying TF typologies, for example by ISIS and Al-Qaeda, has been invaluable and should continue to be strongly supported.
Mr President,
12. Let me conclude by reiterating Singapore’s unwavering commitment to combating the financing of terrorism. Maintaining domestic vigilance and broadening international cooperation are key to our collective success. I thank you, Mr President.
. . . . .
[1] The ACIP is co-chaired by the Commercial Affairs Department and Monetary Authority of Singapore. The ACIP’s Steering Group comprises the Association of Banks Singapore (ABS) and eight banks, namely DBS, UOB, OCBC, Citibank, HSBC, Standard Chartered, UBS, and BNP Paribas.