Singapore has passed a law that will allow the authorities to cast a spotlight on letters of credit (L/Cs) that they suspect might be used to finance terrorist acts.

Singapore is acutely aware of its involvement in the US-led war on terrorism. The alleged Al-Qaeda sleeper cell known as Jemaah Islamiah was uncovered in the island state where it was apparently planning to target US interests.

Assets under scrutiny

The authorities now have powers to target bank credits, travellers' cheques, bank cheques, money orders, shares, securities, bonds and drafts as well as L/Cs on suspicion that they are being used to finance terrorist acts.

The new law obliges those who know of a transaction in terrorist property to inform the police immediately. It also makes it an offence to provide or collect property for terrorist acts, provide property and services or possess property for terrorist purposes and to deal with assets of terrorists.

Financial integrity

Before the new law was passed, Home Affairs Minister Wong Kan Seng provided parliament with two examples of apparently conventional criminal activities in Singapore that were subsequently revealed to be activities in support of terrorism.

The new law ratifies the International Convention for the Suppression of the Financing of Terrorism that Singapore signed in December last year. "The integrity of our financial systems must be prevented from being used by terrorist organisations," Wong said.

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