Singapore updates the TF National Risk Assessment and National Strategy for CFT

Singapore recognises the importance of dealing with Terrorism Financing (TF) risks in protecting the national and global economy. For this purpose, it has developed and implemented a systematic and comprehensive approach to identify, monitor, and mitigate terrorism financing risks, including the Terrorism Financing National Risk Assessment (NRA) and National Strategy for Countering the Financing of Terrorism (CFT).

Singapore recently, on 1st July 2024, released its updated Terrorism Financing NRA and National Strategy for CFT as part of its continuous efforts to deal with the threat of terrorism. 

Such continuous updates in the TF National Risk Assessment and National Strategy for CFT are necessary to cope with any new TF risks posed by the evolving global terrorism landscape.

The key points from Singapore’s Terrorism Financing National Risk Assessment 2024

The TF NRA lays down key vulnerabilities and risks, including sectors at risk of being exploited for TF and their assessment, which categorises these vulnerabilities based on their risk levels, ranging from low to high. For instance:

  • Money Remittances operations have been classified as carrying a high level of TF risk.
  • New cross-border fast payment systems have been identified as a potential new channel for TF activities.
  • Digital Payment Token (DPT) service provider moved from medium-low (2020) to medium-high level of risk due to the anonymous, rapid, and cross-border nature of transfers.
  • Precious stones and precious metals dealers also remain at the medium-low risk level.

Furthermore, Singapore has also adopted mitigation measures for each sector to strengthen detection capabilities, implement stricter reporting regimes, and enhance sector-wide awareness and compliance with anti-money laundering/countering the financing of terrorism (AML/CFT) measures.

Therefore, Singapore’s overall approach to its TF National Risk Assessment focuses on enhancing regulatory frameworks, improving detection capabilities, and fostering industry engagement to mitigate the risks associated with TF in its international financial, business, and transport hub environment.Top of FormBottom of Form

The key points from Singapore’s National Strategy for Countering the Financing of Terrorism (CFT) 2024

The updated National Strategy for CFT is guided by the overarching policy of Singapore’s AML/CFT regime and has three objectives:

  • Prevent: Proactively deter prospective terrorists, terrorist organisations, and sympathisers from exploiting the national economy for TF activities.
  • Detect: Promptly identify and trace TF activities through robust monitoring and tracking of red flag indicators.
  • Disrupt: Take strong and resolute actions against terrorists, terrorist organisations, and sympathisers seeking to raise, move, and use funds for terrorism activities.

With the revised National Strategy for CFT, Singapore aims to remain vigilant and adopt a proactive approach, enabling it to regularly evaluate, assess, and prioritise our key TF threats and vulnerabilities.

This strategy also highlights Singapore’s Five-Pronged National Strategy for CFT and the way forward for looking ahead.

  1. Coordinated and Comprehensive Risk Identification
  2. Strong Legal and Sanctions Frameworks
  3. Robust Regulatory Regime and Risk-Targeted Supervisory Framework
  4. Decisive Law Enforcement Actions
  5. International Partnerships and Cooperation

With updated TF NRA and national Strategy for CFT, Singapore remains committed to strengthening its regulatory and supervisory regimes to combat the evolving challenges posed by TF, locally and internationally.