SINGAPORE - The Financial Action Task Force (FATF) found Singapore to have a competent and coordinated regime to tackle financial crime challenges in a report released on May 6.

The 40-member global financial watchdog sets international standards to help authorities target illegal funds linked to serious crimes.

Members undergo periodic peer reviews to assess their systems’ effectiveness across 40 technical compliance aspects and 11 key areas, known as immediate outcomes which are rated as High, Substantial, Moderate or Low.

Following a July 2025 on-site visit by an international assessment team, Singapore was rated Substantial in seven areas, and Moderate in four in the watchdog’s latest assessment of the period from 2020 to 2025.

This is an improvement compared to the last report in 2016, when Singapore received four Substantial ratings, six Moderate and one Low.

The rating with regards to proliferation financing, which refers to funding weapons of mass destruction and evading international sanctions, was the only one that was downgraded from Substantial to Moderate.

This was after the watchdog looked at certain sectors that are not traditionally subject to anti-money laundering, counter-terrorist financing and counter-proliferation financing obligations, such as representation offices of foreign flag states.

Under maritime law, ships must register under a state flag, which dictates compliance with international regulations.

Private companies often register vessels on behalf of these states for a share of the profits, and several such offices operate in Singapore.