Singapore and Indonesia – compare and contrast

To many observers in the anti-money laundering field, there could scarcely be a greater contrast than that which exists between two neighbours in South East Asia: Singapore has a ‘squeaky clean’ reputation and vigorous law enforcement policy while Indonesia, a sprawling archipelago, has a long history of corruption and, more recently, has been labelled the regional centre for international terrorism. Mark Rowe examines the jurisdictions’ weaknesses and their legal and regulatory infrastructures.

From the money launderer’s perspective, there are two ways of looking at Singapore. It is an important, modern and competitive Asian financial centre, with many local and foreign financial institutions and a sophisticated and reputable banking structure, on top of which, it has a strong penal code and a limited domestic market for illegal drugs. All this suggests that it is an unattractive base for illegal activities.