Singapore designates tax crimes as money laundering

11.10.2012

October 9, 2012 the Monetary Authority of Singapore (MAS) has prepared a consultation paper on the designation of tax crimes as money laundering. Moreover, the respective amendments will be made to the Corruption, Drug Trafficking and Other Serious Crimes Act from July 1, 2013.

Similar measures were introduced by some members of the OECD (The Organization for Economic Co-operation and Development), such as Australia, Hong Kong, the Netherlands and the UK.

In addition, the MAS has invited interested parties to provide feedback on the implementation overpatching, as well as suggestions to facilitate effective implementation till December 9, 2012.

On the basis: http://www.mas.gov.sg/en/News-and-Publications/Press-Releases/2012/MAS-to-Designate-Tax-Crimes-as-Money-Laundering-Predicate-Offences.aspx

Expert’s opinion

Singapore speaks openly about intensions of the legislation improvement in the sphere of reducing money laundering, that is related directly with membership in the FATF (Financial Action Task Force (on Money Laundering)). Particularly, the Monetary Authority of Singapore constantly reminds financial institutions of the need of increased vigilance in relation to any suspicious capital inflows from other jurisdictions in order to optimize taxation.

An introduction of such serious measures in Singapore is based on the desire of effective strengthening of the prevention of tax crimes, taking into account that Singapore provides ample investment opportunities and tax preferences to non-residents.

Julia Akhmetova ( Paralegal of Moscow office company Honest & Bright)