According to a consultation paper, the authorities in Singapore are considering classifying all tax crimes as money laundering (ML) predicate offences.

The Monetary Authority of Singapore (MAS) has issued the consultation paper seeking views of several members of the society. MAS says that most of the serious tax crimes will be treated as predicate offences from 1 July
2013. The authority said that the move is aimed at protesting the country's integrity and reputation as an international financial centre.

The move will make it mandatory for financial institutions to implement all of the Anti-Money Laundering/Countering the Financing of Terrorism measures included in various notices of the MAS. This will prevent laundering of proceeds from serious tax crimes in the country. The FIs will now be required to carry out rigorous customer due diligence, transactions monitoring and reporting of suspicious transactions.

The authority has also proposed the establishment of a framework of essential elements to ensure that that the financial institutions comply with the new regulations. Financial firms will have to implement policies, controls and procedures in order to effectively prevent laundering from fraudulent transactions.

MAS will incorporate the changes in the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act.