Featured Reports

Singapore’s National Anti-Money Laundering (AML) Strategy sets out the strategic approach to address money laundering (ML) risks and will guide our risk-targeted actions to combat ML amidst rapidly changing risks, trends and criminal typologies.

The full report is available for download here.

About the Report

Combatting ML is of national importance to Singapore. Maintaining an effective AML framework protects Singapore’s system from illegal activities and illicit asset fund flows and reinforces Singapore’s reputation as a trusted international financial centre and business hub. The National AML Strategy takes into account Singapore’s updated Money Laundering National Risk Assessment which synthesised observations on ML risks over the years, as well as other risk assessments and reviews developed to enhance Singapore’s risks understanding and risk mitigation measures. It guides Singapore’s continuous efforts to strengthen our AML framework, and support risk-based and proportionate measures against ML activities in Singapore.

To update and deepen Singapore’s PF risk understanding, Singapore carried out a PF national risk assessment (NRA), building on our existing PF risk understanding and tapping on relevant Singapore authorities and private sector experts for a comprehensive assessment.  The PF NRA identifies the key PF threats Singapore is exposed to, as well as higher-PF risk sectors.  It also sets out the key PF risk mitigation measures that have been undertaken by both Singapore authorities and the private sector.

The full report is available for download here.

About the Report

Singapore’s status as an international financial centre and key trading and transhipment hub makes us susceptible to the risks of proliferation of weapons of mass destruction and PF.  Singapore is exposed to the key PF threats of misuse of legal persons, ship-to-ship transfers, movement of dual-use goods, export of luxury goods and misuse of virtual assets.  We have also assessed that these sectors are exposed to higher PF risks:

• For the financial sectors – banks, digital payment token service providers, remittance agents and maritime insurers;
• For the non-financial sectors – corporate service providers, precious stones and precious metals dealers, and lawyers.

To better position ourselves to manage Singapore’s key PF threats and higher-PF risk sectors, Singapore has developed a counter-PF strategy.  All financial and non-financial sectors (including those sectors not identified as being exposed to higher PF risks) are reminded to remain alert to PF risks, and to factor in the findings from this PF NRA as they review and enhance their counter-PF controls, including those in relation to the relevant targeted financial sanctions.  Singapore will continue to monitor the evolving PF risk environment and update our PF NRA periodically.   

Singapore’s Money Laundering (ML) and Terrorism Financing (TF) Risk Assessment for Legal Persons (LP RA) provides a targeted review of the ML and TF threats and vulnerabilities that the various types of legal persons in Singapore are exposed to. It also outlines relevant mitigation measures that have been put in place to mitigate these risks and complements Singapore’s national ML and TF risk assessments.  

The full report is available for download here.

About the Report

While legal persons are formed to undertake a wide range of commercial and entrepreneurial activities, they can be vulnerable to misuse for illicit purposes, such as by obfuscating illicit money trails or aiding in fictitious transactions. Singapore has taken a whole-of-system approach to mitigate against the misuse of legal persons and put in place various measures that are risk-proportionate to the risk profile of each type of legal persons. These include amendments of our laws to improve corporate transparency, introducing measures to enhance the availability and accuracy of beneficial ownership information maintained in Singapore, strengthening enforcement actions and enhancing international cooperation.

The relevant law enforcement agencies, financial intelligence unit, and policy and supervisory agencies will continue to stay vigilant to the risks identified and raise the private sector’s risks awareness. Financial institutions and designated non-financial businesses and professionals (such as banks, corporate service providers, and accountants etc.) should also take reference from the LP RA in assessing their ML and TF risks and enhance their controls where appropriate.

Singapore’s Money Laundering (ML) and Terrorism Financing (TF) Risk Assessment for Legal Arrangements provides a targeted review of the ML and TF threats and vulnerabilities that the various types of legal arrangements in Singapore are exposed to. It also outlines relevant mitigation measures that have been put in place to mitigate these risks and complements Singapore’s national ML and TF risk assessments.  

The full report is available for download here.

About the Report

Similar to the experience in other jurisdictions, legal arrangements are not as frequently exploited by bad actors as legal persons (e.g. companies) in Singapore. In cases where legal arrangements are misused for ML, they are often part of a broader complex structure involving companies, which may span multiple jurisdictions. Legal arrangements are also generally used for a wide variety of legitimate purposes.  However, there remains a risk that they may be misused by bad actors to conceal the beneficial ownership of illicit assets.

As such, the relevant law enforcement agencies, financial intelligence unit, and policy and supervisory agencies will continue to stay vigilant of the risks identified and raise the private sector’s risks awareness. Financial institutions and designated non-financial businesses and professionals (such as banks, trust companies and lawyers etc.) should also take reference from the LARA in assessing their ML and TF risks and enhance their controls where appropriate.

Singapore’s Virtual Assets Risk Assessment (VA RA) provides a targeted review of the money laundering (ML), terrorism financing (TF) and proliferation financing (PF) risks associated with virtual assets, and complements Singapore’s national ML, TF and PF risk assessments. The VA RA identifies the key threats and vulnerabilities Singapore is exposed to. It also outlines relevant mitigation measures that government agencies and the private sector have put in place to mitigate the ML, TF and PF risks arising from virtual assets.

The full report is available for download here.

About the Report

Singapore, as a FinTech hub, is vulnerable to the threats brought about by virtual assets. The VA RA assessed that Singapore’s key threat areas, where cases involving virtual assets were observed, include cyber-enabled fraud, cybercrime through ransomware and thefts from wallets, and ML. Other threats noted from international typologies and observations include illegal online gambling, drug offences, corruption, terrorism financing and proliferation financing.

The relevant law enforcement agencies, financial intelligence unit, policy and supervisory agencies will continue to stay vigilant of the ML, TF and PF risks identified through ongoing surveillance and raising the private sector’s risk awareness, as well as ensuring robust AML/CFT/CPF controls to address these risks.  Financial institutions and designated non-financial businesses and professionals should also take reference from the VA RA in assessing their virtual assets-related risks and enhance their controls as appropriate.

The Singapore Police Force, the Central Narcotics Bureau, and the Corrupt Practices Investigation Bureau are the three law enforcement agencies responsible for investigating money laundering in Singapore. To tackle the key threats identified in the 2024 Money Laundering National Risk Assessment and support Singapore’s anti-money laundering strategy, the agencies have identified key focus areas to prioritise money laundering and guide investigations. This enables law enforcement to keep pace with the evolving risks and typologies of money laundering and take firm enforcement action against criminals seeking to launder their proceeds of crime through Singapore’s financial system.

The full report is available for download here.

The Inter-Ministerial Committee (IMC) released its report to share the findings and recommendations following a review of Singapore’s Anti-Money Laundering (AML) framework. The overarching strategy is a whole-of-society approach, in which relevant stakeholders, who are part of our frontline of defence, need to work collaboratively with the Government.

The IMC’s recommendations enhance Singapore’s framework to combat money laundering whilst remaining welcoming of the large majority of businesses, which are law-abiding and legitimate.

The IMC’s full report is available for download at go.gov.sg/imc-aml-report

Singapore has published its updated Terrorism Financing (TF) National Risk Assessment (NRA) and  National Strategy for Countering the Financing of Terrorism (CFT) as part of its continuous efforts to deal with the threat of terrorism.

Singapore has developed and implemented a systematic and comprehensive whole-of-government approach to identify, monitor, and mitigate TF risks. We will continue to partner industry players to implement strategies and measures to tackle TF threats. We will also closely collaborate with foreign counterparts, international organisations, and standard-setting bodies, such as the Financial Action Task Force (FATF).

You may wish to download the TF NRA infographic and the National Strategy for CFT infographic.

Singapore has published our National Asset Recovery Strategy (NARS), setting out our comprehensive approach towards the recovery of illicit funds and assets from criminals, and the forfeiture of these assets or their return to victims. The NARS is part of Singapore’s continued efforts to enhance its Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regime.

Singapore recognises that criminal activities and methods are constantly evolving. We are committed to continually enhancing our AML/CFT regime to prevent criminals from exploiting Singapore’s ecosystem.

You may wish to download the NARS infographic.

Singapore’s Money Laundering (ML) National Risk Assessment (NRA) forms part of Singapore’s continuing efforts to maintain the effectiveness of its anti-money laundering (AML) regime amidst our evolving risk landscape. It synthesizes the ML risks observed by the Singapore law enforcement agencies, and Singapore’s Financial Intelligence Unit – the Suspicious Transaction Reporting Office (STRO), and supervisory authorities, as well as feedback from private sector entities and counterpart foreign authorities.

About the report

The ML NRA providers an overview of Singapore’s key ML risks, taking into account an extensive range of qualitative and quantitative threats, vulnerabilities and control factors. Singapore’s key ML threats arise from a range of predicate offences, as criminals seek to exploit Singapore’s political and economic stability, strong rule of law, infrastructure, and wide range of services that our financial and other sectors provide.

The ML NRA identifies Singapore’s key threats as fraud (particularly cyber-enabled fraud), organised crime, corruption, tax crimes and trade-based money laundering.

The banking (including wealth management) sector is assessed to pose the highest ML risks, while among the designated non-financial businesses and professions (DNFBP) sectors, corporate service providers pose higher ML risks. Other higher risk sectors include digital payment token service providers, cross-border money transfer service providers (including remittance agents), licensed trust companies, real estate sector and precious stones and metals dealers.

The findings from the ML NRA, together with other risk assessments conducted by the authorities, serve as a guide for all stakeholders, including Financial Institutions (FIs) and DNFBPs, to detect and keep pace with the priority and emerging risks, take appropriate preventive measures as well as to allow more timely detection, disruption and enforcement on illicit activities.

FIs and DNFBPs, especially entities in sectors which are assessed to pose higher ML risks, should also take reference from the ML NRA in assessing their risks and enhance their controls accordingly.

Singapore’s Environmental Crime Money Laundering (ML) National Risk Assessment (NRA) provides a targeted overview of Singapore’s environmental crime ML risk environment and identifies the key threats and vulnerabilities Singapore is exposed to. It also outlines relevant mitigation measures that government agencies and private sector can develop and implement to address ML risks arising from environmental crimes.

Read the Environmental Crime ML NRA document.

The Environmental Crime ML NRA assessed that Singapore’s key exposure to environmental crimes ML stems from our position as an international financial center, and a trading and transit hub, with a highly externally-oriented economy. Singapore is susceptible to threats that emanate from illegal wildlife trafficking, illegal logging, and waste trafficking, which are prevalent in Southeast Asia.

The relevant law enforcement agencies, financial intelligence units, policy and supervisory agencies will continue to stay vigilant of the risks identified and raise the private sector’s risks awareness. Financial institutions and designated non-financial businesses and professionals (such as corporate service providers and precious stones and metals dealers) should also take reference from the Environmental Crime ML NRA in assessing their environmental crime ML risks and enhance their controls as appropriate.

Some observers have pointed out that the Singapore Government has a high level of debt vis-à-vis Singapore’s GDP. Some wonder why this is so, given that the Government runs a balanced budget.

This note explains why the Government borrows, notwithstanding its healthy financial position.

Overview of Singapore Government Borrowings

Readers may also wish to refer here for more information on the Reserves Management Government Securities (RMGS), which the Government recently introduced.

The Ministry of Finance published an Occasional Paper titled “Medium-Term Fiscal Projections”. This Occasional Paper examines the fiscal implications of our medium-term challenges, and projects the Government’s expenditure and revenue up to Financial Year 2030 (FY2030).

Government spending is expected to increase to around 19%–20% of GDP in the FY2026–2030 period, and possibly exceed 20% of GDP by FY2030. A key driver for this increase is government healthcare expenditure. Besides healthcare, we also factored in the fiscal impact of spending moves that the Government has already committed to, such as uplifting lower-wage workers and improving early childhood education.  

The expenditure projections do not take into account future policy moves, such as additional spending to strengthen our social compact and economic competitiveness. If there are such further spending increases, we will need additional revenues to balance the budget in the medium term.

The full paper can be found here.

Press Release:  https://www.mof.gov.sg/news-publications/press-releases/maintaining-sound-public-finances-and-balanced-budgets-over-the-medium-term

Estimating the Effects of Cost-of-Living Support Measures in 2022

The Ministry of Finance published a technical report titled “Estimating the Effects of Cost-of-Living Support Measures in 2022”, which examines the extent to which government support measures provide support to Singaporean households and defray increases in their living expenses.

The report makes use of two different methodologies to provide some numerical estimates of the impact of government support measures.

The full paper can be found here.

Terrorism Financing National Risk Assessment 2020

In 2020, Singapore conducted a Terrorism Financing (TF) National Risk Assessment (NRA). The TF NRA was the culmination of experience and observations from all relevant competent authorities over the past few years, and included inputs from the private sector and academia. It sought to deepen the understanding by law enforcement agencies, supervisors/regulators and the private sector of Singapore’s key TF threats and vulnerabilities, so that appropriate prevention and mitigation measures may be taken.

View Documents:

• TF NRA 2020
• Annex to TF NRA 2020
• Infographic
  

The TF NRA has found that:

• Singapore continues to be exposed to TF threats posed by terrorist groups both regionally and internationally, in particular the propensity for individuals^[1] in Singapore to be radicalised and influenced to carry out TF activities.

• Certain sectors, notably money remittance (or payment service providers carrying out cross-border money transfer service) and banks, are more inherently vulnerable to TF threats, given the relative ease in which their services may be  accessed,coupled with Singapore’s status as a financial and transport hub and proximity to countries exposed to terrorism activities.

Competent authorities in Singapore are cognisant of our TF threats and take a whole-of-government approach to combatting them. Our law enforcement agencies have robust capabilities to counter TF, as evidenced by the TF convictions in recent years. Supervisors and relevant authorities have been engaging relevant private sector entities on their TF risks, and this has improved their risk awareness and understanding, and allowed them to strengthen their measures to mitigate TF risks. Private sector entities should continue incorporating the TF NRA findings in their risk-based approach to countering TF. 

Taking into account the findings of the TF NRA 2020, Singapore has formulated a comprehensive National Strategy for Countering the Financing of Terrorism.

^[1]Local residents and foreign workers.

***

National Strategy for Countering the Financing of Terrorism (CFT)

Taking into account the findings of the Terrorism Financing (TF) NRA 2020, Singapore formulated our National Strategy for Countering the Financing of Terrorism (CFT). The National CFT Strategy forms the blueprint that outlines Singapore’s national approach to address our TF risks and serves as the roadmap to guide the development of future action plans to effectively prevent, detect, investigate, and enforce against TF. It also enhances the coordination of actions across law enforcement agencies, policy makers, regulators and supervisors, and as appropriate, the private sector, in Singapore.

View Document:

• National Strategy for Countering the Financing of Terrorism

Singapore has adopted a five-point strategy which comprises:

1. Coordinated and Comprehensive Risk Identification;
2. Strong Legal and Sanctions Frameworks;
3. Robust Regulatory Regime and Risk Targeted Supervisory Framework;
4. Decisive Law Enforcement Actions; and
5. International Partnerships and Cooperation. 

As necessary, the relevant law enforcement, policy and supervisory agencies have adopted action plans as guided by the National CFT Strategy. 

The Ministry of Finance published an Occasional Paper titled “Assessment of the Impact of Key COVID-19 Budget Measures”. The paper assesses how Singapore’s COVID-19 measures mitigated the short-term impact of the COVID-19 crisis, and helped prevent potential longer-term economic scarring.

The paper builds on the interim report published in February 2021, and provides an assessment of the impact of Singapore's COVID-19 response on broader economic and social outcomes.

• The full paper can be found here.
• Press Release
• Infographic

The Ministry of Finance (MOF) published a paper titled “An Interim Assessment of the Impact of Key COVID-19 Budget Measures”, which takes stock of the relief measures from the five Budgets in 2020 for workers, families and businesses during the COVID-19 pandemic.

This paper provides a preliminary analysis on the impact of the Government’s COVID-19 measures across the five Budgets. It summarises how the COVID-19 measures in the five Budgets reached the intended target groups, to help preserve jobs and cushion the pandemic’s impact on businesses and households.

• The full paper can be found here.
• Press Release
• Infographic

This Terrorism Financing National Risk Assessment (TF NRA) is the culmination of experience and observations from all relevant competent authorities over the past few years, and includes inputs from the private sector and academia. It seeks to further deepen the understanding by law enforcement agencies, supervisors/regulators and the private sector of Singapore’s key TF threats and vulnerabilities, so that appropriate prevention and mitigation measures may be taken.

The TF NRA has found that:

• Singapore continues to be exposed to TF threats posed by terrorist groups both regionally and internationally, in particular the propensity for individuals ^[1] in Singapore to be radicalised and influenced to carry out TF activities.
  
• Certain sectors, notably money remittance (or payment service providers carrying out cross-border money transfer service) and banks, are more inherently vulnerable to TF threats, given the relative ease in which their services may be  accessed, coupled with Singapore’s status as a financial and transport hub and proximity to countries exposed to terrorism activities.

Competent authorities in Singapore are cognisant of our TF threats and take a whole-of-government approach to combatting them. Our law enforcement agencies have robust capabilities to counter TF, as evidenced by the TF convictions in recent years. Supervisors and relevant authorities have been engaging relevant private sector entities on their TF risks, and this has improved their risk awareness and understanding, and allowed them to strengthen their measures to mitigate TF risks. Private sector entities should continue incorporating the TF NRA findings in their risk-based approach to countering TF. 

The full report can be found here (with Annex).

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^[1]Local residents and foreign workers.

Latest Data Shows Progress Made By Each Generation of Singaporeans: Improvements in Education, Employment, Wages, Residential Property Ownership

1. Compared to older age groups, Singaporeans in their 40s today are more educated, better able to find jobs, earn more, save more, and live longer and healthier years.
   
2. These are some of the key findings in a new MOF report ( < src="[images|OpenAccessDataProvider]7eaeade1-8788-6bc6-9db6-ff00009989ba" alt="icon_pdf" title="icon_pdf" data-displaymode="Original">747 KB) on socio-economic outcomes of Singaporeans born in 1940 – 1979.

Improved Education

3. Educational attainment levels have improved across the cohorts of Singaporeans studied in the report, in line with enhanced access and improvements in the quality of the education system. Only 22% of Singaporeans born in 1940 – 1949 went beyond secondary school, compared to 79% of those born in 1970 – 1979.
   
4. Younger Singaporeans who are not included in the current study are expected to attain even higher educational qualifications. Today, students benefit from well-resourced schools and a large degree of flexibility in the education system, where they can choose from multiple pathways based on their strengths and talents.

Higher Employment Rates, Wages and Savings

5. With higher qualifications, younger Singaporeans are better able to find jobs, earn higher wages, and save more for retirement. Comparing each cohort when they were in their 40s, the Labour Force Participation Rate for those born in 1970 – 1979 is 89%, compared to 79% for those born in 1950 – 1959. The median real gross monthly income from work (including employer CPF contributions) for those in their 40s is $5,900 for the younger group, more than double that of the $2,800 earned by the older group^[1]. Looking at CPF balances in the Ordinary Accounts and Special Accounts of Singaporeans in their 40s, the median for the younger group is three times that of the older group, after adjusting for inflation.For balances at the 20th percentile, the younger group has more than seven times the balances of the older group, again after adjusting for inflation.
   
6. Today, the Government intervenes actively to support Singaporeans who want to work, such as by supporting skills development and employment facilitation. For example, the Adapt and Grow initiative helps jobseekers affected by economic slowdowns to get back into employment as soon as possible. Employers also benefit from various grants and programmes to upskill their workers.
   

Higher Residential Property Ownership Rates

7. Higher wages and savings have contributed to high residential property ownership rates for Singaporeans. Residential property ownership rates have improved from 76% for those born in 1940 - 1949 to around 85% for the younger cohorts. Most HDB dwellers have leases that are long enough to cover them until at least age 95. This also means that they have an asset that can be monetised if necessary, to supplement their retirement needs (for example, by right-sizing or through the Lease Buyback Scheme).  
   

Longer Life Expectancies

8. Singaporeans are living longer, healthier years. The life expectancy at age 45 has risen from 35 years in 1999 to 41 years in 2017, accompanied by a similar rise in Health Adjusted Life Expectancy at age 45 from 29 years in 1999 to 33 years in 2017.
   
9. With enhanced healthcare schemes like MediShield Life, CareShield Life, Community Health Assistance Scheme, Screen For Life, younger Singaporeans will be better prepared for their healthcare needs, including the early detection and management of conditions.

Decrease in Family Support

10. Although subsequent generations of Singaporeans have a better quality of life and more personal resources for retirement, lower marriage rates and smaller family sizes may mean less available support from the immediate family. The Government will continue to work closely with community partners to support those who may need additional assistance, even as we encourage the strengthening of inter-generational family bonds. The Government will also do more to help Singaporeans to upskill, earn and save more.
    

Background

11. The report is prepared by the Ministry of Finance, with inputs from various ministries. These indicators reflect how socio-economic outcomes have changed across generations, as Singapore progressed from Third World to First. For comparability, they are grouped into four 10-year age bands to show the improvements in Singaporeans’ quality of life over time – Singaporeans born in the 1940s (1940 – 1949); Singaporeans born in the 1950s (1950 – 1959); Singaporeans born in the 1960s (1960 – 1969); and Singaporeans born in the 1970s (1970 – 1979). The report is available at https://www.mof.gov.sg (747 KB).
    

^[1] Real incomes in 2018 dollars.

The measurement of intergenerational income mobility, or the degree to which income status persists across generations within a family, has been a subject of great interest among social scientists and policymakers. High intergenerational mobility is desirable from the social perspective as it suggests that there is greater equality of opportunity – society offers similar chances of achieving economic success regardless of one's background. Conversely, low mobility implies that children from low income families are more likely to remain poor, and thus presents a case for more active government intervention to "level the playing field".

In this paper, we present measures of intergenerational income mobility in Singapore, derived using a simple methodology originating from Solon (1992). Specifically, we estimate the correlation between measures of fathers' incomes and that of their sons' incomes.

Read more about the intergenerational income mobility study:

• Executive Summary (297 KB)
• IG Income Mobility In Singapore (833 KB)
  

Singapore's AML/CFT Policy Statement

Singapore adopts a whole-of-government approach to combating money laundering and terrorism financing (ML/TF). This is led by the Anti-Money Laundering and Countering the Financing of Terrorism Steering Committee (“AML/CFT Committee”), comprising the Permanent Secretary of the Ministry of Home Affairs, Permanent Secretary of the Ministry of Finance and Managing Director of the Monetary Authority of Singapore.

Singapore’s AML/CFT policy objectives are to: i) detect, deter and prevent money laundering, associated predicate offences and terrorism financing; and ii) protect the integrity of its financial system from illegal activities and illicit fund flows. The AML/CFT efforts are centred on having a sound and comprehensive legal, institutional, policy and supervisory framework; low crime rate; intolerance for corruption; an efficient judiciary; close international cooperation with other jurisdictions; an established culture of compliance; effective monitoring of the measures implemented; and decisive law enforcement actions against ML/TF threats.

To achieve the policy objectives, Singapore follows these principles:

• Allocate law enforcement, financial intelligence and supervisory resources on a risk-sensitive basis

• Maintain close policy and operational coordination and cooperation across the Government

• Take a preventive approach that combines tough licencing and comprehensive reporting requirements, strict AML/CFT regulations, and risk-based supervision of the relevant financial and non-financial sectors

• Enhance private sector stakeholders’ understanding of ML/TF risks and promote a culture of compliance

• Take decisive and deterrent law enforcement action against ML/TF activity, including that relating to foreign crimes

• Disrupt drug dealing and other serious offences early to prevent proceeds from being laundered

• Provide assistance to other jurisdictions through formal and informal channels spontaneously and on request

• Rigorously implement and contribute to the development of international standards, including the international standards on combating money laundering and the financing of terrorism and proliferation set by the Financial Action Task Force and United Nations Security Council Resolutions (particularly for targeted financial sanctions related to terrorism and proliferation of weapons of mass destruction)

AML/CFT Steering Committee

Singapore's National Risk Assessment (NIRA) Report

Click here for the press release dated 14 Jan 2016.

Income growth, inequality and mobility are key issues of concern for many countries across the world.

• Real income growth provides an indication of how consumption and standards of living are improving;

• Income inequality examines the spread of incomes across a society;

• Intergenerational income mobility measures the extent to which individuals' incomes and their standing in the income ladder differs from their parents'.

This paper reviews trends in income growth, inequality and mobility in Singapore using data from the Department Statistics (DOS), and puts them in international perspective.

Read our key findings here (1,149 KB).

Read the Economic Society of Singapore SG50 Distinguished Lecture by DPM Tharman on Singapore's social policies here.