Singapore broadens scope of mutual legal assistance for cross-border crime under new law

Singapore's law enforcement agencies will be able to enforce confiscation orders made by any competent foreign authority and take evidence from persons under foreign investigation, among other legal changes passed in Parliament on Monday (Nov 11).

These are part of efforts to improve the Republic’s processes and capabilities in assisting foreign jurisdictions, following feedback from the international money laundering watchdog, Financial Action Task Force.

The amendments to the Mutual Assistance in Criminal Matters Act will further enhance Singapore’s ability to support complex international investigations and secure convictions, said Minister of State for Law Murali Pillai at the start of the debate.

For instance, prior to the changes, Singapore was able to assist foreign jurisdictions in taking statements only from individuals who have already been charged, and not those still under investigation.

In contrast, for domestic investigations, Singapore’s authorities can take statements from individuals who have not yet been charged, noted Murali.

Therefore, a new section under the Mutual Assistance in Criminal Matters Act will “ensure that powers available for domestic authorities are also available for use in response to requests for mutual legal assistance”.

Another amendment will allow Singapore to enforce foreign confiscation orders made by any foreign competent authority, not just those made by courts.

This is because in other countries, particularly those with civil law systems, confiscation orders may be issued by authorities other than courts.

The change “will enhance Singapore’s ability to deprive criminals of their illicit proceeds”, said Murali.

While the amendments streamline the process for mutual legal assistance requests, Murali said it is “critical” that Singapore does not blindly accede to every request it receives.

There are safeguards to ensure that assistance is provided only in meritorious cases, he said.

For instance, Singapore will refuse a request if the investigation relates to conduct that would not have been an offence had it occurred in Singapore, or if it would be contrary to public interest to provide such assistance.

Countries without a mutual legal assistance treaty with Singapore will also have to give an undertaking of reciprocity.

Trustee obligations

Changes were also made to Singapore’s trust regime, including expanding the scope of the information that trustees must collect.

The maximum fine for non-compliance under the Trustees Act has also been raised to S$25,000, from S$1,000 previously, to ensure alignment with other Acts for similar offences.

Under the Trustees Act, trustees must obtain and hold information on each person that is a relevant trust party. This includes the settlor, beneficiaries, the trustee, and any person who has power over the disposition of any property that is the subject of a trust.

With the amendments, trustees must also collect the “basic information of the trust”, such as its name, tax reference number and trust deed.

“Relevant trust parties” will now also include natural persons exercising effective control over the trust, and “the class of beneficiaries” – referring to individuals not yet known or identified who may benefit from the trust in the future, such as the descendants of the settlor.

Nominated Member of Parliament Neil Parekh said these changes may result in higher compliance and operational costs for the trusts sector. In response, Murali said this was not likely, as the Trustees Act already imposes obligations on trustees to obtain and hold information on each relevant trust party.

The basic information of the trust will usually be set out in the trust instrument, a document that sets out the terms of the trust and how its assets are to be managed – which trustees would likely have in their possession, he added.

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