TESS: Country Report Summary – Singapore

Country Report Summary

SINGAPORE

Anti Money Laundering

FATF status

Singapore is not on the FATF List of Countries that have been identified as having strategic AML deficiencies.

Compliance with FATF Recommendations

The last Follow-up to the Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Singapore was undertaken in 2019. According to that Evaluation, Singapore was deemed Compliant for 20 and Largely Compliant for 17 of the FATF 40 Recommendations. It was also deemed Highly Effective for 0 and Substantially Effective for 4 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Sanctions

There are no international sanctions currently in force against this country.

Bribery & Corruption

Rating: 0 (bad) - 100 (good)

Transparency International Corruption Index = 84

World Bank: Control of Corruption Percentile Rank = 98

Singapore is recognized as one of the least corrupt countries globally, ranking fifth in Transparency International’s 2023 Corruption Perception Index. The country enforces stringent anti-corruption laws, including the Prevention of Corruption Act and the Penal Code, which effectively deter bribery and corruption in both public and private sectors. The Corrupt Practices Investigation Bureau (CPIB) is the primary agency responsible for investigating corruption, and recent corporate fraud cases have been addressed promptly by the government, reinforcing the low risk of corruption for foreign investors.

Economy

Singapore has an open and heavily trade-dependent economy, recognized as a critical player in the global supply chain. The country attracts substantial foreign investment across various sectors, particularly in manufacturing and services, and is noted for its favorable investment climate characterized by transparency, strong legal protections, and a robust infrastructure. With a diversified economy and a focus on innovation and sustainability, Singapore is poised to continue attracting foreign investment, especially in emerging sectors like digital innovation and pharmaceuticals.

Singapore boasts a highly attractive investment climate characterized by its open and trade-dependent economy, robust legal framework, and strong protection of intellectual property rights. The country actively promotes foreign direct investment through various incentives, including tax benefits and research grants, while maintaining a transparent regulatory environment that ranks among the least corrupt globally. Additionally, Singapore’s strategic location and well-developed infrastructure further enhance its appeal as a regional hub for multinational companies.