Strengthening AML/CFT Controls and Practices

This information paper outlines the supervisory expectations and typologies related to anti-money laundering and countering the financing of terrorism (AML/CFT) controls concerning the misuse of legal persons and complex structures. The Monetary Authority of Singapore (MAS) emphasizes the importance of financial institutions (FIs) enhancing their capabilities to detect and mitigate risks associated with illicit activities. The paper presents various case studies that illustrate both effective practices and areas of weakness identified during inspections of FIs. It highlights the necessity for FIs to conduct thorough customer due diligence (CDD) and ongoing monitoring to ensure compliance with AML/CFT regulations. The paper also discusses the need for FIs to remain vigilant to evolving risks and typologies, adapting their controls accordingly. Additionally, it encourages FIs to benchmark their practices against the expectations set forth by MAS and to implement timely remediation measures where gaps are identified.