T. Raja Kumar, the first Singaporean head of the global Financial Action Task Force, emphasises the importance of international collaboration in tackling money laundering and terrorism financing.

BY RAHIMAH RASHITH

Raja, 61, is currently senior adviser for international matters at Singapore’s Ministry of Home Affairs (MHA), and has been a member of the Steering Group, which provides advice to the FATF’s president, since July 2018. He began a two-year term as the FATF president in July 2022, succeeding Germany’s Dr Marcus Pleyer.

Before his involvement in the FATF, Raja served in various roles in the areas of policy, regulation and law enforcement. He was also deputy commissioner for policy at the Singapore Police Force and chief executive of the Casino Regulatory Authority. An alumnus of the National University of Singapore, Cambridge University and Harvard University, he was awarded Singapore’s prestigious Public Administration Gold medal in 2021, the Public Administration Silver medal in 2007, and the Public Administration Bronze medal in 1996 for his strong leadership and contributions.

1. As the first Singaporean to be appointed president of the FATF, what are the unique perspectives you bring to the role?

It is an honour to be selected to serve in this role. The FATF has done much to support the fight against money laundering, terrorism and proliferation financing, but much remains to be done. We face many evolving challenges. I hope to contribute my leadership experience and blend of policymaking, regulatory and law enforcement know-how to this role. I believe Singapore and Singaporeans have much to offer in global leadership roles, given our global orientation, a constant quest for new ideas, and pragmatism. Diverse expertise in leadership is essential.

“We face many evolving challenges. I hope to contribute my leadership experience and blend of policy-making, regulatory and law enforcement knowhow to this role. I believe Singapore and Singaporeans have much to offer in global leadership roles, given our global orientation, a constant quest for new ideas, and pragmatism.”

2. How important is it for Singapore as a small nation to build strong friendships and trust with other countries?

I see this as vital given how globally connected we are in trade and other areas such as safety and security. This cuts both ways, as criminals and terrorists can exploit such connectivity for their own nefarious purposes. Crime knows no borders, making it crucial for countries to be well connected with their global counterparts and collaborate on areas of common interest.

Singapore’s strong thought leadership has helped to introduce new ideas and structures. It founded the Forum of Small States that now comprises 108 countries, and provides a platform to small countries across regions. On MHA’s part, we worked with INTERPOL to establish the INTERPOL Global Centre for Innovation here. Despite being small, Singapore punches above its weight in diverse fields. For instance, because of its excellent infrastructure and attributes such as high public safety, global events such as the Forbes CEO conference took place here not long ago. In areas such as urban planning, policing, safety and security innovation, countries look to Singapore to learn. Similarly, through engagement, we also learn from other countries in many areas.

3. Could you share what lessons Singapore and member countries can learn from each other in combating financial crime?

International crime syndicates operate across borders without any respect for boundaries. It is thus essential for countries and their agencies to see the big picture and not work in silos. We would do well to learn from the best global practices and assess how best they could be modified and adopted in our local context.

For example, we saw how the New Zealand Police invested in asset recovery capabilities, and set a national target, which then drove action in this area. This resulted in sharply improved asset recovery rates. Other countries, such as Australia and the US, have also taken similar steps. Another good example is the Japanese koban system and how Singapore has adapted it to fit our own context.

4. In what ways have your cross-border work given you a different perspective on life and work matters?

The harsh reality is that no single country can deal effectively with cross-border challenges. Criminals and terrorists have taken advantage of technology, such as new communication platforms, to perpetuate crimes and spread their influence. During the Covid-19 pandemic, criminals exploited the greater volume of online transactions to commit scams and ransomware. No single country can adequately combat cross-border crimes on its own. Global collaboration is needed. So now, more than at any other time, we need to work as closely and seamlessly as possible in tight networks that facilitate quick sharing and quick action. But this is more easily said than done. Countries have to rise above parochial thinking and see the common interest and potential value that collaboration can yield. We have our work cut out for us as we push to secure greater global collaboration to achieve better results.

“Now, more than at any other time, countries need to work closely and seamlessly in tight networks that facilitate quick sharing and quick action.”

5. How has the pandemic affected money laundering and terrorism financing operations?

The sharp increase in online activity has seen criminals fraudulently access and divert government aid, impersonate government officials, carry out fake fundraising campaigns and counterfeit medical supplies. The FATF has been monitoring these developments since the pandemic started. We have also released several reports and examples of criminals profiting from the pandemic. Under the Singapore presidency, the FATF will continue to focus on efforts to combat ransomware and the money laundering risks posed by cyber-enabled fraud.

6. How can financial hubs and countries like Singapore mitigate the risk posed by money laundering?

Every country faces risks, particularly large financial centres, which inevitably attract a greater share of illicit funds. For instance, the United Nations Office on Drugs and Crime estimates that as much as US$2 trillion or more is laundered each year globally. As illicit funds can easily cross borders at the click of a button, involving both financial and the non-financial sectors in different countries and continents is essential.

The biggest challenge today is ensuring that all countries understand the risks they face and take the appropriate steps to mitigate them. One of the goals of the FATF is to raise awareness among countries about their risks and provide information about the latest trends and methods. The FATF also regularly publishes best practices for countries.

7. How can countries navigate evolving challenges in the financial crimes landscape such as cryptocurrencies?

Crypto assets can enable organised crime and terrorist groups to carry out anonymous transactions. That is why the FATF has expanded its standards to cover the crypto sector under the scope of anti-money laundering and counter-financing of terrorism rules. Countries must show they are regulating their risks relating to crypto companies and can identify, trace, freeze and confiscate crypto assets. Anti-money laundering measures apply in full to crypto or virtual asset service providers in the same way that traditional financial institutions like banks are regulated.

8. Why is it important to deepen the understanding of money laundering among ordinary citizens?

Money laundering is often misunderstood. People know the term and have an idea of what it entails. However, they don’t realise its deep and negative ramification on societies. Money laundering enables the operations of criminal gangs involved in drug trafficking, human-trafficking, illegal wildlife trade, cyber-enabled fraud and other crimes. It allows criminals to live a life of luxury with funds that could have been used for societal benefits such as education, healthcare or infrastructure. Greater public education is thus vital to helping people become more aware of financial crime, as well as how they can play their part to stop such activities.

9. How have your friendships with global counterparts enabled you to carry out certain transnational work more effectively?

The strong ties I have forged with key leaders from strategic international partners, such as INTERPOL, have enabled us to collaborate closely and with a common shared purpose. In 2022, for instance, I launched an FATF-INTERPOL initiative to strengthen international efforts to recover criminal assets and prevent further crime. Global experts, including law enforcement agencies, asset recovery officers, financial intelligence units, prosecutors and the private sector, came together for the inaugural FATFINTERPOL Roundtable Engagement in Singapore.

Of course, such relationships are forged over many years – and I find that many do not fully appreciate the need for, and value of, strong networks, be they local, regional or international. These should not be viewed as transactional but as value creating and value generating.

10. As the head of a global organisation, could you share your personal observations on the way Singaporeans are perceived globally?

Speaking from personal experience, I have met officers who are unwilling to even try different cuisine and do not make the effort to learn the cultural nuances of the country they are visiting. Some are shy about intervening at international forums. I recall a conversation with a Western senior civil servant in which he remarked [in relation to some nations hardly intervening during international meetings] that in his country, an unwillingness to speak up was perceived as dullness of intellect.

My firm belief is that more Singaporeans should take greater risks in pursuing overseas opportunities, gaining exposure, and learning how to operate effectively in different environments and cultures. One learns much and this equips the leader to succeed in higher global roles. I would delight in seeing more Singaporeans on the regional and global stage flying our flag high!