MAS Strengthens Singapore’s AML/CFT Framework
The Monetary Authority of Singapore has introduced significant updates to its Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Notices and Guidelines, coming into effect from 1 July 2025.
These updates mark a vital step in aligning Singapore’s measures to prevent financial crime with the latest FATF standards.
Key Changes at a Glance
Proliferation Financing (PF) Integration:
- Money laundering now explicitly covers proliferation financing.
- Financial institutions and VCCs must now conduct PF risk assessments alongside their ML/TF risk evaluations.
- Institutions should consult the AML/CFT Industry Partnership Best Practice Paper for PF guidance.
Improved Trust Regime:
- Expanded definition of “trust relevant party” to include protectors, categories of beneficiaries, and objects of power.
- Clearer requirements for identifying all parties involved in legal arrangements.
- Better alignment with the Trustees Act 1967 and the updated FATF Recommendation 25.
Simplified STR Filing:
- STR submissions must be made within five business days of suspicion arising (except in exceptional cases).
- For sanctioned parties: STRs must be lodged within one business day.
- Automatic sending of STR copies to MAS is no longer required unless requested.
Strengthened Due Diligence Requirements:
- Better screening accuracy using relevant search engines.
- Reinforced procedures for establishing the source of wealth and the source of funds.
- Updated guidance on characteristics of higher-risk shell companies.
- Improved information sharing across business units.
Impact of the Industry
These amendments affect all MAS-regulated entities, including banks, payment service providers, capital markets intermediaries, digital token service providers, insurance companies, and Variable Capital Companies.
The changes demonstrate Singapore’s ongoing commitment to preserving its status as a trusted global financial centre, while strengthening safeguards against economic crime, particularly considering recent high-profile money laundering cases.
Action Required
Financial institutions should promptly review and update their:
- Risk assessment frameworks.
- Compliance policies and procedures.
- STR filing procedures.
- Staff training programmes.
- Customer due diligence processes.
As Singapore continues to strengthen its reputation as a clean and well-regulated financial centre, these measures help ensure our financial ecosystem remains resilient against emerging threats.
Strengthening Singapore's Safeguards Against Financial Crime
The Monetary Authority of Singapore (MAS) has rolled out significant updates to its Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework, effective July 1, 2025. These updates are designed to align Singapore’s standards with FATF recommendations and bolster its position as a trusted global financial hub.
Here’s what’s new:
Proliferation Financing (PF) Integration
Financial institutions and VCCs must now assess PF risks alongside money laundering and terrorism financing risks.
Improved Trust Regime
Expanded definitions around trust roles and more precise identification requirements to ensure better compliance.
Simplified STR Filing
Streamlined suspicious transaction report procedures – one day for sanctioned parties, five business days for others.
Stronger Due Diligence
Enhanced screening accuracy, improved checks on the source of funds, and better information sharing.
These changes affect all MAS-regulated entities, including banks, payment service providers, insurers, digital token service providers, and more.
The move underscores Singapore's commitment to a robust financial ecosystem that’s resilient against emerging threats.
Action Required
Update your compliance frameworks and ensure staff are equipped with the training needed for a smooth implementation.
Get In Touch
For more information please contact Michael Velten.
michael@veltenadvisors.com
+6590687547
391B Orchard Rd, Level 22, Ngee Ann City Tower B, Singapore 238874
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