DPRK FINANCIAL ACTIVITY IN SINGAPORE

S E C R E T SINGAPORE 003149

SIPDIS

SIPDIS

STATE FOR ISN/CPI AND EAP
PASS TREASURY FOR U/S LEVEY

E.O. 12958: DECL: 10/02/2016
TAGS: ETTC EFIN PARM PREL PGOV MNUC KTFN SN
SUBJECT: DPRK FINANCIAL ACTIVITY IN SINGAPORE

REF: STATE 136465

Classified By: Economic and Political Chief Ike Reed.
Reasons 1.4 (b) (d)


1. (U) Singapore's Ministry of Foreign Affairs on October 2
delivered the following response to reftel demarche.


2. (SBU) Begin text:

Singapore supports internationally recognized initiatives to
combat WMD proliferation. This is seen, for example, in
Singapore,s participation in and co-operation with member
countries, including the US, within the context of the
Proliferation Security Initiative. On the broader front in
the fight against terrorism, Singapore has in place the legal
framework to not only deal with terrorism financing but also
mutual co-operation with other countries. Over and above our
international commitments, the Suspicious Transaction
Reporting Office of the Commercial Affairs Department has in
place a Memorandum of Understanding with their US
counterpart, FINCEN, to facilitate information sharing. We
will continue to cooperate with the relevant US agencies
within our legal framework.

Further, as an international financial center, we guard our
reputation seriously. We take seriously our obligations with
respect to our international commitments, including UN
Security Council Resolutions. Towards this end:-

a) Banks in Singapore are vigilant against any form of
illicit financing, and are required to take action should
they have reason to suspect that specific accounts (including
North Korean accounts) are being used for such purposes.

b) Financial institutions operating in Singapore are required
to institute measures to guard against money laundering and
terrorism financing, which are benchmarked against the
international standards set by FATF.

c) MAS conducts both offsite reviews and onsite inspections
of financial institutions to confirm these measures are in
place.

d) It is also a criminal offence in Singapore to raise funds
to commit a terrorist act, to provide funds or financial
services to a terrorist, etc and our authorities have the
legal powers to freeze and seize the assets of terrorists.

End text.


3. (S/NF) We will continue to press Singapore to respond to
questions posed reftel but left unanswered in the above text.
These include requests to verify that neither Song To-il nor
Tanchon Commercial Bank has access to the Singapore financial
system; that Singapore banks have taken action to freeze
assets in accounts linked to DPRK WMD or missile programs or
proliferation activities; and to confirm that United Overseas
Bank (UOB) and other financial institutions have terminated
business relations with DPRK entities and individuals.
FERGIN