Legislative changes to provide for new money laundering offences and prevent Singpass from being used for criminal purposes

28 February 2024

With effect from 8 February 2024, the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 (“CDSA”) and the Computer Misuse Act 1993 (“CMA”) have been amended to provide for new money laundering offences and to prevent Singpass from being used for criminal purposes.

The amendments to the CDSA and CMA are part of the Singapore Government’s multi-pronged strategy to fight scams, and will empower the authorities to deal more effectively with money mules and prevent the abuse of Singpass for scam operations.

On 7 February 2024, the Ministry of Home Affairs (“MHA”) issued a press release outlining the new offences:

  • Rash and negligent money laundering;
  • Assisting another to retain benefits from criminal conduct in certain circumstances;
  • Disclosing a user’s own Singpass credentials to facilitate an offence; and
  • Obtaining or supplying another person’s Singpass credentials to facilitate an offence.

Rash and negligent money laundering

The CDSA is amended to introduce the offences of rash and negligent money laundering. A person can be liable for rash money laundering if he proceeded to carry out a transaction while he had some suspicions about the transaction but did not make further enquiries to address those suspicions. A person can be liable for negligent money laundering if he continued with a transaction despite the presence of red flags or suspicious indicators, which would be noticeable by an ordinary, reasonable person.

In the MHA press release, it is explained that these offences could apply to persons acting as directors of companies and operating corporate accounts.

Assisting another to retain benefits from criminal conduct

The CDSA is also amended to introduce a new offence of assisting another person to retain benefits from criminal conduct. A person can be held liable for this offence if his conduct falls within any of the following four circumstances:

  • The value of the property he dealt with is disproportionate to his known sources of income; or
  • He allowed another person, or persons, to access, operate or control his payment account and failed to take reasonable steps to find out the purpose of this arrangement; or
  • He received or transferred money using his payment account and failed to take reasonable steps to find out the source or destination of the money; or
  • He received money from or transferred money to another person, or persons, and failed to take reasonable steps to find out that person’s identity and physical location.

An individual will not be liable for this offence if he can prove that he did not know and had no reason to believe that the property dealt with through his account was criminal proceeds.

In its press release, MHA states that owners and operators of payment accounts, including personal and corporate bank accounts, must use their accounts responsibly as they will be held accountable for any transaction that takes place through their accounts. In considering requests by others to use their payment accounts to receive and transfer monies, owners must always conduct checks on the other party, to verify the other party’s identity and to understand the origin or destination of the monies.

Disclosing a user’s own Singpass credentials to facilitate offence

The CMA has been amended to introduce a new offence to address the conduct of Singpass users who deliberately give their credentials to other persons, which are then used to facilitate criminal activities. To combat such behaviour, it will now be an offence for a Singpass user to disclose his Singpass credentials, if he did so knowing, or having reasonable grounds to believe, that the purpose of the disclosure is for any person to commit, or facilitate the commission by any person, of an offence.

Obtaining or dealing in Singpass credentials to facilitate criminal activities

To deal with those who purchase Singpass credentials and syndicates which trade the Singpass credentials, the CMA has been amended to introduce a new offence which criminalises acts of obtaining, retaining, or dealing in another person’s Singpass credentials.

It is not an offence if an individual obtained or retained another person’s Singpass credentials for a legitimate purpose. It is also not an offence if an individual supplied, offered to supply, transmitted or made available the Singpass credentials of another person for a legitimate purpose, and the individual did not know or have reason to believe that those credentials will be or is likely to be used to commit an offence.

Reference materials

The following materials are available on the Ministry of Home Affairs website www.mha.gov.sg and Singapore Statutes Online sso.agc.gov.sg:

For further information about the amendments to the CDSA and CMA, please visit www.police.gov.sg/advisories/crime/CDSA-and-CMA-Bill-Amendments.