Singapore Refreshes Efforts Against Terrorism Financing

Singapore published on Monday its updated Terrorism Financing National Risk Assessment and National Strategy for Countering the Financing of Terrorism as part of its continuous efforts to deal with the threat of terrorism.

Terrorist actors may exploit Singapore’s economic openness as an international financial, business, and transport hub for Terrorism Financing (TF) purposes. There is therefore a need for constant vigilance. Furthermore, as the global terrorism landscape evolves, Singapore’s TF risks will evolve too, hence this refreshed assessment and strategy.

Singapore has developed and implemented a systematic and comprehensive whole-of-government approach to identify, monitor, and mitigate TF risks. The security, intelligence (including financial intelligence), law enforcement, supervisory, and regulatory agencies constantly scan for existing and emerging TF risks, informed by TF cases in Singapore, international reports, and feedback from foreign counterparts on observed TF risks with a Singapore nexus. We also actively engage and cooperate with the private sector and academia to enhance our understanding of TF risks.

Key Threats

Singapore’s key TF threats emanate from (i) terrorist groups such as the Islamic State of Iraq and Syria (ISIS), Al-Qaeda and Jemaah Islamiyah, as well as potential spillovers from the ongoing Israel-Hamas conflict and tensions in the Middle East; and (ii) self-radicalized individuals who are sympathetic towards the cause of terrorist groups, in particular ISIS. Far-right extremism is also a growing security concern in many countries. While it has not gained significant traction in Southeast Asia, we cannot rule out that its anti-Islam and anti-immigration rhetoric may resonate with some individuals.

The updated 2024 TF National Risk Assessment (NRA) articulates the latest TF threats and vulnerable sectors in Singapore. It takes into account key developments since the last TF NRA in 2020, such as the evolving global and regional terrorism landscape, growth of the digital economy and financial services in Asia, and emerging TF risk typologies. Similar to 2020, the 2024 TF NRA has observed that the TF threat of raising and moving funds for terrorists and terrorism activities overseas remains pertinent in Singapore’s context. Self-radicalised individuals continue to pose the most salient TF threat to Singapore. The key TF risk areas in 2024 are largely similar to those identified in 2020:

a. Money remittances remain at High risk, with cross-border online payments identified as a potential new channel for TF activities;
b. Banks remain at Medium-High risk, with new cross-border fast payment systems identified as a potential new channel for TF activities;
c. Digital Payment Token service providers have been elevated from Medium-Low to Medium-High risk;
d. Non-profit organizations remain at Medium-Low risk, with foreign online crowdfunding identified as an emerging TF typology of concern;
e. Cross-border cash movements remain at Medium-Low risk; and
f. Precious Stones, Precious Metals, and Precious Products remain at Medium-Low risk.

The 2024 TF NRA supports the refreshed objectives of our National Strategy for CFT, launched in 2022, namely:

a. Prevent: proactively deter prospective terrorists, terrorist organizations, and sympathizers from exploiting Singapore’s openness for TF activities;
b. Detect: promptly detect and trace TF activities through robust monitoring and tracking of red flag indicators, especially in high-risk sectors and emerging TF typologies of concern; and
c. Disrupt: resolutely enforce against terrorists, terrorist organizations, and sympathizers seeking to raise, move and use funds for terrorism activities, both locally and abroad.

To achieve the above objectives, Singapore will implement the refreshed five-pronged National Strategy for CFT:

a. Coordinated and Comprehensive Risk Identification;
b. Strong Legal and Sanctions Frameworks;
c. Robust Regulatory Regimes;
d. Decisive Enforcement Actions; and
e. International Partnerships and Cooperation.

Singapore will continue to partner with industry players to implement strategies and measures to tackle TF threats. We will also closely collaborate with foreign counterparts, international organizations, and standard-setting bodies, such as the Financial Action Task Force (FATF).