Edward Chia on the Anti-Money Laundering Act and other issues

Anti-money laundering laws are designed to protect Singapore’s financial systems, but they must not inadvertently create a greater compliance burden or foster negative public perceptions of the country, MP Edward Chia said. He cited proposed changes that would make it easier for a court to order the sale of seized properties in certain circumstances, without the consent of all parties. He said this could raise concerns about an increased risk of property seizure, which could discourage legitimate investment and activity. He noted that the psychology of foreign investors must be taken into account – they may come from societies with lower trust in the police and similar institutions and therefore be wary of potential abuse of power. Mr Chia also said that compliance officers must be given clear guidance to ensure they do not adopt an overly conservative approach, and that the financial and real estate sectors must be encouraged to align and consistently apply compliance practices. He spoke in Parliament on Tuesday (Aug 6).