Commentary: What can Singapore do to prevent another billion-dollar money laundering case?

HOW ACCOUNTANTS PLAY AN IMPORTANT ROLE

Under the Corruption, Drug Trafficking and Other Serious Crimes Act, it is mandatory for any professional to file a suspicious transaction report if she or he has reasonable grounds to suspect criminal conduct such as money laundering, terrorist financing and using proceeds of crime.

Public accountants who prepare or carry out high-risk transactions, for example, buying and selling real estate and managing client assets, have to comply with the Accountants (Prevention of Money Laundering and Financing of Terrorism) Rules 2023 prescribed by the Accounting and Corporate Regulatory Authority.

For high-risk services, accountants are required to screen the client against money laundering and terrorist financing information sources, such as sanctions lists provided by the Monetary Authority of Singapore.

Accountants must also conduct due diligence checks on prospective or existing clients. Such checks enable accountants to know who they are dealing with and gauge money laundering risks. This helps them in the effective identification and reporting of suspicious activities.

Accountants are also required to perform more comprehensive checks and regular monitoring on clients from higher risk countries known to have inadequate measures for the detection and prevention of money laundering or terrorist financing.

Despite rigorous checks in place, financial criminals can evade detection by exploiting human nature. For instance, seven persons were charged in court on Aug 17 for relinquishing bank accounts or Singpass credentials which were then used by scam syndicates for money laundering activities.

In one case, an 18-year-old woman agreed to an online investment scheme on Telegram which offered her at least S$10,000 in return for using her two bank accounts. One of her bank accounts was found to have been used for laundering criminal proceeds.

Combating money laundering thus requires the concerted effort of members of the public as well, as they may be inadvertently caught in a web of illicit transactions.