SINGAPORE is tightening controls over the financing of weapons of mass destruction, to comply with international requirements, under a Bill tabled in Parliament on Tuesday (Jan 9).

To enable this, the Prevention of Proliferation Financing and Other Matters Bill includes amendments to existing laws related to the flow of money.

These are the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act, the Legal Profession Act, the Moneylenders Act, and the Pawnbrokers Act.

Singapore is doing this to comply with new requirements introduced in October 2020 by the Financial Action Task Force (FATF), a global money laundering and terrorist financing watchdog of which Singapore is currently president.

Under the requirements, FATF member states and reporting entities must assess the risk of “proliferation financing” in relation to their business, and take measures to mitigate these risks.

FATF defines proliferation financing as providing funds or financial services for the manufacturing, acquisition, possession, development, export, transhipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical or biological weapons and their means of delivery and related materials; in contravention of national laws or international obligations.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

To achieve this, the Bill will, for example, expand the purpose of the Precious Stones and Precious Metals Act to include combating the financing of proliferation of weapons of mass destruction.

Legal practitioners, moneylenders and pawnbrokers will also be involved in the prevention of proliferation financing.

For example, the Registrar of Moneylenders may refuse to issue or renew a licence if the applicant has been convicted for an offence related to the prevention of money laundering, terrorism financing or proliferation financing for weapons of mass destruction.

Pawnbrokers will be required to implement measures to prevent proliferation financing, including additional customer due diligence in specified situations.

The Bill will be debated at its second reading when Parliament next sits.