Category Archives: General

Combating money laundering and countering terrorism financing

Posted on 6 Sep 2015 | Comments Off on Combating money laundering and countering terrorism financing

As part of efforts to enhance industry awareness of anti-money laundering (AML) and countering the financing of terrorism (CFT), CEA and CAD conducted a second joint industry outreach/briefing session on 27 July 2015 at the HDB Auditorium. The event was attended by some 350 participants.

In his opening remarks, CEA Deputy Executive Director Lee Kwong Weng said that “AML and CFT are very important issues and the Singapore government takes them seriously”. He emphasised the important role the real estate agency industry has to play in AML and CFT, and that “we must not let the industry be unwittingly made use of to finance terrorism”.

In the first of two briefings, CAD Commercial Affairs Officer Fam Suen Li highlighted the vulnerabilities of the real estate sector to money laundering and terrorism financing through the sharing of case studies. CEA Principal Manager (Policy & Planning) Cedric Peeris then brought the audience through the requirements in the Practice Circular on prevention of money laundering and countering the financing of terrorism, and key learning points from inspections of estate agents for compliance with AML/CFT measures.

The participants were reminded that lodging a Suspicious Transaction Report (STR) is a legal obligation. STRs play an important role in combating money laundering and terrorism financing. Under the Corruption, Drug Trafficking and other Serious Crimes (Confiscation of Benefits) Act [CDSA], it is mandatory for a person, in the course of his/her business or employment, to lodge a STR if he/she knows or has reason to suspect that any property may be connected to a criminal activity. Failure to disclose such knowledge, suspicion, or other related information constitutes an offence punishable by a fine not exceeding $20,000.

Other than briefing sessions, CEA issued a revised Practice Circular on AML and CFT in February 2015, which superseded the previous circular issued in November 2013.

The updated circular sought to increase industry understanding on issues relating to AML/CFT. It provided information on the measures to prevent against such activities that might be conducted through property transactions. Also highlighted were the key provisions, offences and obligations for compliance by estate agents and salespersons. CEA also provided a self-assessment checklist to guide estate agents on AML/CFT procedures, training and compliance management.

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Property industry must raise standards

Posted on 6 Sep 2015 | Comments Off on Property industry must raise standards

Singapore’s real estate industry should ascend to greater heights, particularly in terms of quality — the quality of construction supervision, finishing touches, and attention to detail, said Ku Swee Yong, CEO of Century 21 Singapore.

He noted that while Singapore has witnessed improvements in the quality of a few of the largest residential developments during the past 10 years, overall standards have not really improved by much. “Today, we see more and more residential properties completed with shoddy workmanship, even within prestigious developments in the luxury districts,” he said.

“Some defects are not obvious at the handover and may remain hidden for more than a year. For example, sloppy waterproofing will lead to seepage or sewerage issues, and poor installation of dry partition walls will reveal cracks after more than a year.”

Poor workmanship has been spotted not only in private residential developments, but increasingly, also in public housing, with residents complaining of cracked walls, narrow corridors, leaks, uneven flooring and overflowing toilets, among others.

Although Minister of State for National Development Desmond Lee explained that the majority of the defects raised by residents were surface imperfections which do not affect the structural integrity of the building, Ku believes that Singapore’s real estate industry “should have advanced well beyond the basic assumption that buildings here have solid structural integrity”.

“Uneven flooring and badly laid tiles do not affect the safety of buildings, but they do not provide comfort for home users, and may lead to future expenses and other burdens. If developers and construction companies take pride in the quality of their work and build solid homes that last for generations, surface defects may not even exist.”

With this, Ku proposed that the real estate industry set modest aims. “Instead of thinking about what we might achieve in the next 50 years, let us aim to improve the quality of our new buildings over the next decade. As for completed buildings, we should up the ante; spend more energy and money to maintain our condominiums,” he said.

“From the external environment — such as security, waste management, facilities, parking and landscaping — to interior spaces within each apartment and house, we need to embed design elements that allow homes to be constructed and finished with high quality. We should carefully consider material specifications for new homes with low-maintenance requirements.”

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