SINGAPORE - A report by the Financial Action Task Force (FATF) points to successes in Singapore’s fight against financial crime, but says improvements are needed in measures to tackle money laundering, terrorist financing and proliferation financing.

The global financial crime watchdog noted the Republic’s innovative approaches towards tackling financial crime, and said strong coordination has helped it successfully close loopholes and combat scams.

Ms Elisa de Anda Madrazo, the president of FATF, said: “Facing unique and accelerating illicit finance risks, Singapore has had success in following the money thanks to new and innovative approaches.

“As one of the epicentres of the global fraud epidemic, Singapore has made important strides in addressing the rising threat of fraud. Singapore must now step up efforts to ensure action is targeted towards the biggest threats.”

Fraud, particularly scams and cyber-enabled fraud, is the most prominent money laundering threat facing Singapore, FATF said.

It noted that over the last five years, Singapore’s law enforcement agencies have opened more than 11,000 money laundering investigations.

However, a majority of the investigations involved low-level money mule cases related to cyber-enabled fraud.

The assessment found this limits the pursuit of higher-value and more complex money laundering networks, and the recovery of more substantial criminal assets connected to transnational actors.

Formed in 1989, the 40-member FATF sets international standards to help authorities target illegal funds linked to serious crimes.

Members undergo periodic peer reviews to assess their systems’ effectiveness across 11 key areas, known as immediate outcomes, and 40 technical compliance aspects.

Singapore, which joined the group in 1992, is