Singapore unveils new rules to choke terrorist financing
Singapore unveils new rules to choke terrorist financing
Agence France-Presse, Singapore
Singapore's de facto central bank on Tuesday unveiled new regulations aimed at choking the flow of funds for terrorist groups.
Under the regulations by the Monetary Authority of Singapore (MAS), financial institutions are barred from providing or collecting funds believed to be used to carry out terrorist activities.
Banks and other financial institutions are also prohibited from dealing directly or indirectly in any property owned or controlled by terrorists or any entity linked to terror groups.
They shall not "make available any funds or other financial assets or economic resources" or services to such groups, it said.
Financial institutions which have possession, custody or control of property belonging to terrorist groups or have information about any transaction or proposed deal on assets linked to terrorists must "immediately inform" the MAS.
Singapore is a leading financial center in Asia with rigorous rules, but officials say the new regulation would further strengthen the ability of the MAS to monitor suspicious transactions.
The MAS described the new regulations as "anti-terrorism measures" aimed at giving teeth to a series of UN Security Council resolutions aimed at fighting terrorism such as crippling their finances.
The regulations cover "all branches and offices" of financial institutions incorporated in Singapore, whether they are located here or elsewhere.
They also cover those incorporated outside Singapore located in the city-state, the MAS said.
In July, Singapore's parliament passed a law aimed at paralyzing financing for terrorist groups.
The law allows authorities to target assets like bank credits, travelers cheques, bank cheques, money orders, shares, securities, bonds, drafts and letters of credit on suspicion that they are being used to finance terrorist acts.
It also makes it an offense to provide or collect property for terrorist acts, provide property and services or possess property for terrorist purposes and to deal with assets of terrorists.
Home Affairs Minister Wong Kan Seng said the law gives effect to the International Convention for the Suppression of the Financing of Terrorism which Singapore signed last year.
He said the integrity of Singapore's financial system must be preserved by preventing terrorist organizations from using it to launder funds.