A recent raid resulted as one of Singapore’s biggest money laundering sting operations after the latest investigation led to the arrest of 10 foreign people for forgery and money laundering and the seizure of $1 billion in cash and assets.
For today’s article, let’s talk about the controversial money laundering in Singapore and how KYC would make a big difference and help financial institutions to ensure that they know who their customers are, and they can monitor their transactions to detect any unusual activities.
1 Billion Dollar Money Laundering Case
Su Haijin made an on-screen appearance in court on Wednesday (August 23), wearing casts on his limbs. He is an ex-director of the restaurant chain No Signboard Holdings, who suffered fractures to his wrist, femur, and heels.
In the names of Su and his wife, 18 homes and automobiles worth more than S$160 million, according to the prosecution, have been seized. The prosecution stated that more time was required to look into where the money for these came from. At least six financial institutions have yet to submit documents, while 14 confiscated devices are undergoing forensic extraction and evaluation.
The prosecution stated that more time was required to look into where the money for these came from. At least six financial institutions have yet to submit documents, while 14 confiscated devices are undergoing forensic extraction and evaluation. Six of the 10 individuals involved linked to a S$1 billion money laundering case were remanded for another eight days to assist investigations.
Source: https://www.channelnewsasia.com/international
Consequences of Money Laundering
According to Section 54 of the CDSA, those found guilty of money laundering may be sentenced to up to 10 years in jail, a fine of up to S$500,000, or both.
The Payment Services Act (PSA), a framework that outlines regulatory obligations for payment service providers, is also in place in Singapore. The authorized authority, known as MAS, is in charge of monitoring payment compliance and investigating claims of money laundering in Singapore’s financial institutions.
Know-Your-Customer Due Diligence is a MUST HAVE
KYC due diligence is essential for various reasons:
Compliance: Strict regulatory requirements that compel the deployment of efficient KYC procedures to stop money laundering and other financial crimes apply to many businesses.
Risk Management: Businesses are better able to evaluate the risks involved in deals or collaborations when they have a deeper grasp of their clients.
Reputation: Proper KYC procedures help to build a company’s reputation as a reliable and responsible institution.
Legal Consequences: Inadequate KYC procedures might result in legal consequences and reputational harm.
Financial Institutions: To ensure compliance with anti-money laundering (AML) and counter-terrorist financing (CTF) legislation, financial institutions, including banks, are subject to a great deal of regulation.
Digital Services: Strong online identity verification has become essential to preventing fraud and guaranteeing the security of online platforms with the growth of digital services and online transactions.
Final Word
KYC due diligence is a crucial part of risk management and regulatory compliance across a range of businesses, despite the fact that regulations are always changing and financial crimes are becoming more complex.
This year, Intellinz has partnered up with Sanction Scanner which offers its customers the ability to create rule sets tailored to their specific requirements. This flexibility allows companies to customize the AML controls according to their unique risk profiles and compliance needs. By integrating the software into their existing systems, companies can easily incorporate AML checks into their workflow.
The software provided by Sanction Scanner includes pre-built rule sets, which are based on industry best practices and regulatory guidelines. These rule sets serve as a foundation for AML monitoring, enabling companies to quickly establish effective control measures. Additionally, businesses have the option to create their own rules based on their specific risk factors and compliance requirements.
The KYC services of Intellinz powered by Sanction Scanner help companies verify their customers and safeguard themselves from fraudsters, money launderers, and other dubious entities. Get in touch with us to safeguard your business.
