SINGAPORE PROPOSES NEW CASH COURIER REPORTING

UNCLAS SINGAPORE 001607 SIPDIS TREASURY FOR PDERGARABEDIAN FINCEN FOR RMILLER JUSTICE FOR JWELD SIPDIS E.O. 12958: N/A TAGS: EFIN ETTC KTFN ECON KCRM SN SUBJECT: SINGAPORE PROPOSES NEW CASH COURIER REPORTING REQUIREMENTS Ref: Singapore 357 ¶1. The Singapore government presented to parliament two amended pieces of legislation designed to enhance the country's anti-money laundering and countering the financing of terrorism (AML-CFT) regime on August 27. These actions are part of a series of steps Singapore has taken in recent months to bring its AML-CFT regulatory and enforcement infrastructure more into alignment with Financial Action Task Force (FATF) recommendations. FATF is currently conducting its mutual evaluation of Singapore, which includes an onsite assessment September 3-14, with DOJ participation. ¶2. Proposed changes to the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Amendment Bill include new reporting requirements for cash couriers -- Part VIA Q Cross Border Movements of Physical Currency and Bearer Negotiable Instruments. Once approved, in-bound and out-bound travelers in most cases must declare cash and cash instruments they are carrying in excess of S$30,000 or its equivalent (approximately US$20,000 -- twice the threshold required under U.S. law). Violators could be subject to a fine of up to S$50,000 (US$ 33,100), a maximum prison sentence of three years or both. The legislation also clarifies and expands the scope for reporting suspicious transactions. ¶3. The Monetary Authority of Singapore (Amendment No. 2) Bill would raise the maximum penalty for financial institutions that fail to comply with AML-CFT regulations from S$100,000 (US$66,225) to S$1 million (US$662,250). It also would empower the Monetary Authority to prosecute financial institution managers where non-compliance is attributable to their consent, connivance or neglect (reftel). ¶4. Both bills must undergo two more readings in parliament and then be approved by the President (a formality) before they are enacted. The full text of the amendments can by viewed at www.egazette.com.sg (current notices, bills supplement) or www.parliament.gov.sg (bills introduced). SHIELDS