In a move to fortify Singapore’s anti-financial crime landscape, the Monetary Authority of Singapore (MAS) is introducing sweeping changes to its Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework.
Announced through a consultation paper in April 2025, the updates are set to take effect from 30 June 2025, targeting financial institutions (FIs) and variable capital companies (VCCs) across a wide range of sectors including banking, insurance, payments, capital markets, and digital assets.
Napier AI, a fast, scalable and easily configurable RegTech platform for AML and compliance, recently explored the four key changes to the Monetary Authority of Singapore’s regulatory expectations to AML/CFT.
One of the most significant updates is the mandatory inclusion of proliferation financing (PF) in money laundering risk assessments. While many firms already consider PF risks under their sanctions compliance programmes, MAS now requires institutions to “assess, understand and mitigate” PF risks as a distinct element of AML/CFT reviews. The move brings MAS in line with evolving global expectations, particularly those set out by the Financial Action Task Force (FATF), and urges financial institutions to adopt more granular, risk-based approaches when screening for PF exposure.
Trust companies will also face more rigorous scrutiny under the amended Notice TCA-N03. The definition of “trust relevant parties” will expand to include protectors, potential beneficiaries, and individuals with control over trust assets. Firms must now obtain detailed identification and purpose information for all such individuals. The changes are aimed at strengthening MAS’s expectations on ultimate beneficial ownership (UBO) transparency, ensuring that complex structures are not exploited for illicit purposes.
Suspicious transaction reporting (STR) timelines have also been revised to remove ambiguity. MAS now expects STRs to be filed within five business days of suspicion being formed, and within one business day for cases involving sanctioned parties. While institutions are no longer required to submit STR copies directly to MAS unless requested, Napier AI has called for greater clarity on what constitutes “exceptional” delays, and guidance on escalation procedures when reports may be late.
Further enhancements focus on customer due diligence. MAS is stressing the importance of open-source and native language background checks, and more rigorous verification of source of wealth and funds. For higher-risk clients, additional scrutiny and corroboration are now mandatory.
To meet these rising expectations, financial institutions are increasingly turning to advanced technology. Traditional screening tools may fall short, especially as MAS now requires institutions to consider names in different scripts, nicknames, and aliases. Napier AI’s client screening tool includes fuzzy name matching across more than 25 languages, including Chinese and Arabic, enabling firms to detect risks that might otherwise be missed due to transliteration or cultural naming differences.
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