NON-CONVICTION-BASED CIVIL FORFEITURE OF ASSETS DERIVED FROM “DRUG DEALING” OR “CRIMINAL CONDUCT”

To safeguard Singapore’s good reputation as a trusted international financial centre, there needs to be continued vigilance and robust defence against the flow of illicit funds and activities into our shores. One measure that takes the profit out of crime is forfeiture of assets believed to be acquired from ill-gotten gains. I have noted that in countries such as UK and US, enforcement officers have been given wider powers to effect freezing and forfeiture of such assets even in the absence of securing convictions. This is to deal with situations where there is low probability of offenders being brought to book. In Singapore, whilst there are provisions allowing for non-conviction based forfeiture in limited spheres, it is not as wide-ranging as in the abovementioned countries. I therefore filed a PQ asking if Singapore will consider similarly extending its arsenal of “weapons” against money laundering. My PQ and Minister Shanmugam’s answer may be accessed below. I am glad to note from his answer that his Ministry will review the current regime.

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Mr Murali Pillai asked the Minister for Home Affairs whether the Ministry will introduce non-conviction-based civil forfeiture of assets believed to be derived from “drug dealing” or “criminal conduct” within the definition of Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992.

Mr K Shanmugam: There are existing mechanisms for non-conviction-based confiscation of benefits from criminal conduct in Singapore. The Organised Crime Act provides for the civil confiscation of benefits derived from organised crime activities without a need for a conviction. The Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 (CDSA) also allows for such confiscation, albeit only in exceptional circumstances where the defendant is deceased or has absconded.

Non-conviction-based confiscation mechanisms can complement conviction-based confiscation mechanisms, to deprive criminals of financial gain. This is increasingly important as the operating environment for profit-generating crime becomes more complex. In fact, strengthening asset recovery and enhancing law enforcement’s ability to target criminal assets are priorities of the Financial Action Task Force (FATF) — an inter-governmental body that sets international standards to prevent and combat money laundering, terrorism and proliferation financing, of which Singapore is a member. We will review our non-conviction-based confiscation mechanisms.