Should this happen, the MAS will take tough enforcement actions for breaches of our regulatory requirements. Where laws are broken, we will also not hesitate to refer these to the law enforcement agencies for investigation and prosecution. 23. Last year, we announced the centralization of our enforcement function into a single department. The team in our Enforcement Department will deepen our capabilities in investigative work that were previously undertaken by prudential supervisors. A centralised enforcement function in MAS will also allow us to take a holistic approach to “follow the funds” should these cut across different types of entities in our financial sector. 24. Let me now highlight the fourth key element of our AML/CFT framework: International Cooperation and Partnerships. 25. I have mentioned Singapore’s commitment to the international efforts to combat ML/TF risks. We fully support the important work of various international organisations including the FATF. In addition, it is important to have close supervisory co-operation between financial regulators and we hope to expand on our supervisory cooperation network. Another area which we will strengthen is our partnership with the financial industry. 26. While law enforcement and regulatory authorities have wide powers, the financial industry has an “on the ground” vantage point with front-line knowledge of business and clients. It is hence advantageous to adopt a collaborative “eco-system” approach to holistically deal with 3/5  BIS central bankers' speeches  ML/TF risks. Such a partnership should be as inclusive as practicable – involving law enforcement agencies, regulator and the industry.

have also co-ordinated international efforts to tackle the problem in a comprehensive manner. This is essential given the trans-national nature of the threats. 8. The FATF – which is the international standard setting body – has also sought to develop more guidance relating to various sectors and entities. Many of you will be familiar with the FATF Recommendations on money laundering, terrorism financing and proliferation financing. In 2012, 1/5  BIS central bankers' speeches  the FATF enhanced its Recommendations to put emphasis on effectiveness. That is, merely having rules in place is not enough. FATF also developed a more systematic framework for peer reviews. 9. Let me turn to developments in Singapore. 10. We have a comprehensive legal and regulatory framework, in line with global standards. We will continue to enhance our Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regime. 11. Last year, the MAS decided to consolidate some of our supervisory resources into a single AML department so that we can further deepen our technical expertise and focus in this area. This will allow us to better streamline supervisory efforts across various sectors of finance such as banking, insurance and capital markets. At the national level, the AML Department coordinates AML/CFT strategies across all economic sectors, together with other government agencies. 12. The financial sector is a critical component of our national AML/CFT defences. MAS’ framework involves four key elements: (a) Progressive Regulations (b) Intensive Supervision (c) Rigorous Enforcement (d) International Co-operation and Industry Partnerships 13. Firstly, on Regulations.