The FATF/APG Mutual Evaluation Report was released on May 6. It covers the assessment of Singapore’s AML, counter-terrorist financing, and proliferation financing framework. The assessment was based on the situation at the time of the on-site visit in July 2025.
The report characterizes Singapore as a competent and well-coordinated regime. At the same time, it indicates that the system needs more focused and consistent risk-based outcomes.
Fraud Leads Singapore’s Risk Profile
Fraud tops the national money laundering threat list. FATF highlighted the issue of scams and cyber-enabled fraud, often connected with foreign syndicates. The problem of illegal gambling was also cited by FATF as one of the organized crime risks facing Singapore.
This is the central contradiction in the report. Singapore has an advanced institutional structure, although its position as a global financial hub exposes it to cross-border criminal money.
Casino Supervision Gets Strong Marks
The findings on the gambling industry were different. FATF pointed out that the Gambling Regulatory Authority exercises strict oversight over the two casino operators in Singapore.
Between 2020 and 2024, the GRA conducted 16 examinations on the two casinos, focusing on customer due diligence, continuous monitoring, and suspicious transaction reporting. During the assessment period, it also issued nine warning letters and six financial penalties totalling SGD 2.695 million.
FATF noted that this enforcement action had helped strengthen a compliance culture amongst casino operators. This was significant in the context of the report, where licensed casinos were not singled out as a vulnerability in Singapore’s gambling risk profile.
The broader problem lies outside. It involves illegal gambling, foreign remote gambling crimes, and the proceeds of scams. These elements touch the financial system through banks, mules, and intermediaries.
Prosecutions Remain the Harder Test
The report highlights Singapore’s SG$3 billion money laundering case of 2023 as an example of scale. FATF stated that the case was associated with foreign organized crime and money laundering activities linked to foreign remote gambling offenses.
Enforcement statistics also highlight the discrepancy. Singapore conducted 11,189 money laundering investigations between 2020 and 2024. More than 80% of those investigations were triggered by victim reports on cyber-enabled fraud. In addition, 682 natural persons were prosecuted during the same period.
FATF mentioned that most investigations involve money mule schemes. Files in such schemes may be difficult to prosecute, especially when the main suspects and evidence are located abroad. Although Singapore enacted legal changes to support money laundering prosecutions, their full impact remains unclear.
Regular Follow-Up Keeps Pressure on Results
Singapore received substantial effectiveness ratings for seven of FATF’s 11 Immediate Outcomes and moderate effectiveness ratings for the remaining four. The country has been placed on regular follow-up, which is a better category compared to enhanced monitoring.
Singapore’s regulated casino framework appears to be one of the stronger parts of the review. The tougher part lies in scams, mules, foreign remote gambling proceeds, and complex financial crimes. What to watch for next as a sign of progress is whether Singapore can convert intelligence into high-value cases.
