SINGAPORE: The Monetary Authority of Singapore (MAS) will set up dedicated department to combat money-laundering and strengthen its enforcement capabilities, the central bank said on Monday.
Singapore last month ordered the closure of Swiss bank BSI's operations in the city-state, while Switzerland began criminal proceedings against the private bank, in the biggest international crackdown on financial entities dealing with a scandal-hit Malaysian government fund.
MAS said it will form a dedicated anti-money laundering (AML) department that will conduct functions that used to be carried out by different departments in the central bank.
"Like all major international financial and business centres, Singapore's financial sector faces the risk of being used as a conduit for money laundering and terrorist financing activities," the central bank said in a statement.
"While MAS has in place a robust regime to protect the integrity of Singapore's financial system, the increasing complexities of transnational flows necessitates heightened supervisory focus on combatting money laundering and other illicit financing activities," the MAS said.
The central bank said it will also set up a new enforcement department, which will be responsible for enforcement actions arising from regulatory breaches of the central bank's banking, insurance and capital markets regulations.
The new departments will be set up effective August 1, the MAS said.
"We will strengthen our supervision of financial institutions' controls to combat money laundering and illicit financing," Ravi Menon, managing director of MAS said in the central bank's statement.
"MAS is resolved to ensure that Singapore remains a clean and trusted financial centre," Menon added.
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