Saturday, Aug 15, 2020
International Finance

New Singapore e-service to help firms fight money laundering

Banks such as BNP Paribas, DBS Bank, MUFG Bank, OCBC Bank, and United Overseas Bank show interest in the new service

Secondary Keyword: Singapore e-service, Singapore new digital service, Singapore digital trade platform

Singapore’s digital national trade platform has added a new service to its list to help financial institutions better deal with money laundering and terrorism financing. The e-service will help firms and financial institutions deal with trade compliance challenges in a better way.

Singapore created the Trade Finance Compliance (TFC) service in a bid to fight against money laundering and terrorism financing. Singapore Customs worked together with the Monetary Authority of Singapore (MAS) and other financial institutions to develop the new service.

Banks such as BNP Paribas, DBS Bank, the Industrial and Commercial Bank of China, MUFG Bank, OCBC Bank, and United Overseas Bank have already shown interest in the new service.

It uses data issued by Singapore Customs to allow financial institutions to conduct better price checks for non-commodity goods. Traders can also decide to share their data directly with financial institutions of their choice.

Gillian Tan, executive director in Monetary Authority of Singapore’s financial markets development department told the media that, “By digitalising the trade finance compliance check process and directly referencing pricing and permit-related customs data on Singapore imports and exports, the trade finance compliance will increase the efficiency and accuracy of trade finance compliance checks for financial institutions in Singapore.”

He added, “As a result, these financial institutions will be able to better assess fraud and mitigate risks associated with trade-based money laundering.”

To fight money laundering, Singapore’s central bank has also closed accounts of several onshore shell companies after detecting fraudulent activities.

Singapore’s position as one of the leading financial centers especially in Southeast Asia makes the country vulnerable to money laundering and terrorism financing.

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