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.