Anti-Money Laundering Flashcards

What is money laundering?

Answer: The process of making illegally obtained money appear legitimate

Money laundering is the process of disguising the origins of illegally obtained money to make it appear as though it came from legitimate sources.

What are the three stages of money laundering?

Answer: Placement, layering, integration

The three stages are: Placement (introducing illegal funds into the financial system), Layering (concealing the trail through complex transactions), and Integration (re-entering the funds into the legitimate economy).

What is the purpose of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA)?

Answer: To provide the legal framework for confiscating proceeds of crime and criminalising money laundering

The CDSA is Singapore's primary anti-money laundering legislation, criminalising money laundering and providing for the confiscation of benefits from criminal conduct.

What is Customer Due Diligence (CDD)?

Answer: The process of verifying a customer's identity and assessing the risk they pose

CDD involves identifying and verifying the customer's identity, understanding the nature of their business, and assessing the money laundering risk they may pose.

What is a Suspicious Transaction Report (STR)?

Answer: A report filed with authorities when a transaction is suspected to involve proceeds of crime

An STR is a report filed with the Suspicious Transaction Reporting Office (STRO) when a financial institution suspects a transaction may involve money laundering or terrorism financing.

Who is responsible for filing STRs in Singapore?

Answer: Financial institutions and designated non-financial businesses and professions

Financial institutions and designated non-financial businesses and professions (DNFBPs) are legally required to file STRs when they have suspicions about transactions.