Singapore Real Estate Sector to Face Tougher Penalties and Tighter Compliance to Combat Money Laundering
Singapore is stepping up its fight against money laundering in the property market with a new bill that imposes stricter compliance requirements and harsher penalties on estate agents, property salespersons, and developers.
The Anti-Money Laundering and Other Matters (Estate Agents and Developers) Bill was read for the second time in Parliament on Tuesday, April 8. The legislation aims to align Singapore’s property sector with international standards, particularly those set by the Financial Action Task Force (FATF).
What the New Bill Will Change
The updated framework shifts the penalty structure from a per-case basis to a per-contravention basis for anti-money laundering (AML) and related breaches. This means that each individual offence will now attract its own fine, increasing the total penalty for repeat offenders.
Current penalties include:
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Minor breaches: Up to S$5,000 per case
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Serious breaches heard before a Disciplinary Committee:
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Estate agents: Up to S$200,000
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Salespersons: Up to S$100,000
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Under the new law, if a salesperson commits two AML breaches and two breaches of professional misconduct, the total fine could rise to S$300,000—S$200,000 for AML-related offences and S$100,000 for misconduct. Under the current system, the fine would be capped at S$100,000 for all four breaches combined.
For developers, fines for less serious breaches will also increase—from the current S$5,000 to up to S$50,000.
Why the Stricter Measures?
The move comes in response to Singapore’s largest-ever money laundering case, involving over S$3 billion in assets, including more than 200 properties valued at over S$370 million.
Second Minister for National Development Indranee Rajah cited the case in Parliament, highlighting that commissions from illicit deals could easily exceed current maximum penalties. For example, a 2 percent commission on a S$10 million property could earn a salesperson S$200,000—double the current maximum fine for a serious breach.
She said that with financial gains far exceeding the existing penalties, there is a clear need to raise the fines to provide stronger deterrence.
Impact on Real Estate Agents and Developers
There are over 36,000 property agents in Singapore as of January 2025. The enhanced law will apply to all licensed estate agents and developers and specifies that any individual convicted of money laundering, terrorism financing, or proliferation financing—whether in Singapore or overseas—will no longer be considered fit and proper to operate in the sector.
The Council for Estate Agencies (CEA) will continue to oversee investigations and enforcement. The authority had earlier confirmed it was investigating agents possibly involved in the recent money laundering transactions.
Industry Reactions
The Real Estate Developers’ Association of Singapore (Redas) expressed support for the new legislation, calling it a necessary step toward enhancing compliance awareness and reinforcing ethical practices in the industry.
In its response, Redas noted that while the measures provide clarity, the government could consider support schemes to help smaller companies cope with the cost of compliance. It also pledged to work closely with the authorities to assist members in adopting the new regulatory standards.
Looking Ahead
Minister Indranee reiterated that Singapore will remain vigilant and stands ready to tighten regulations further if necessary. She stressed that fighting money laundering and related crimes in the property sector requires a united effort from the government, businesses, and individuals.
The new compliance regime reinforces Singapore’s status as a trusted and well-regulated global property market.
