In August 2023, Singapore witnessed its largest-ever money laundering case: ten foreigners arrested and over $3 billion SGD in property and assets seized. The case, among others, spurred the launch of a national strategy to counter the rising threat of money laundering.
What is the National Anti-Money Laundering Strategy?
Singapore’s National Anti-Money Laundering (AML) Strategy, released in October 2024, outlines the government’s risk-based approach to combating money laundering. It is designed to respond to evolving threats and guide actions across the public and private sectors.
At the heart of the strategy are three key pillars:
- Prevent: to prevent proceeds of crime from entering Singapore’s system, and deter the misuse of Singapore’s system by criminals
- Detect: to ensure that illicit flows and activities are identified for appropriate disruption and enforcement actions, and effective risk mitigation
- Enforce: to ensure that firm, proportionate and dissuasive actions are taken against persons conducting money laundering activities to protect the system
Among these, the Prevention pillar is especially critical for businesses, as it requires active risk mitigation and due diligence to keep financial systems clean.
Why the Prevention Pillar Matters to Your Business
Preventing money laundering starts well before any suspicious activity occurs. Companies—particularly financial institutions, corporate service providers (CSPs), and real estate agents—play a key role in stopping illicit funds at the door.
This means having effective controls in place at critical points in your operations, such as:
- Employee onboarding
- Client onboarding (KYC and KYB checks)
- Supplier engagement
- Ongoing transaction monitoring
By incorporating AML checks into these processes, businesses can reduce exposure to risk and remain compliant with Singapore’s regulations. For example, when onboarding new employees, Anti-Money Laundering screening can help identify individuals who may pose a risk based on their financial or criminal background.
Employee Onboarding as a Preventive Tool
Employee onboarding is an often-overlooked area of Anti-Money Laundering compliance. However, the risk posed by internal actors—whether through negligence or malicious intent—can be significant.
Using background screening tools, such as those offered by First Advantage, organisations can ensure that all hires undergo necessary due diligence, including AML checks. This is particularly important for roles with access to financial systems, sensitive data, or decision-making authority.
Keeping Your Business Compliant
To align with the Prevention pillar of the national Anti-Money Laundering strategy, businesses should:
- Review existing policies and procedures regularly
- Train employees to recognise and report suspicious behaviour
- Leverage trusted partners for background screening and risk assessments
With enhanced legal frameworks now in place, the cost of non-compliance has grown—ranging from hefty fines to reputational damage. Early, preventive action is the most effective way to avoid this.
How can First Advantage help?
We understand that adding new procedures and protocols can be disruptive to a company’s operations. We therefore aim to provide our services in a manner that minimises friction.
First Advantage has over 45 years of experience in the screening industry, and we conduct over 103 million Anti-Money Laundering checks per year. We also offer related services such as anti-corruption screening and screening for potential terrorism links.
First Advantage can tailor a fit-for-purpose suite of KYC, KYB, and due diligence checks for organisations looking to strengthen their AML policies considering the new legislation and enhanced strategy in Singapore.
We also work with organisations to integrate our API into existing native platforms to provide a seamless solution that empowers companies to access global, scalable screening and due diligence solutions.
Speak to us today to discuss a suitable package for your business.
