Singapore issues guidance with trade finance & correspondent banking focus

By Keith Nuthall

The Monetary Authority of Singapore (MAS), the country’s central bank, has released practical and detailed guidance telling the city state’s large financial sector how to protect itself against money laundering, with trade finance and correspondent banking the key focus. [1] In guidance taking account of existing Singapore legislation, the MAS advised banks and other financial service providers on trade finance risk assessments; due diligence; sanctions controls; trade-based money laundering; filing suspicious transaction reports; and training. Regarding correspondent banking, the MAS again advised on due diligence and also monitoring of linked financial institutions. Banks need to maintain AML controls for Singapore to preserve its reputation as a clean and trusted commercial, trading and transportation hub, said the guidance.