Singapore’s central bank, the Monetary Authority of Singapore (MAS), has released its latest Money Laundering Risk Assessment Report, which identifies the banking sector as the highest money laundering risk to the country. The report also points out the risks associated with digital assets and cryptocurrencies. In response, MAS has put in place strict regulatory measures under the Payment Services Act (PS Act) to address these risks.
The report, titled “Money Laundering Risk Assessment Report Singapore 2024”, was unveiled on June 20, showcasing Singapore's ongoing efforts to strengthen its anti-money laundering (AML) framework in the face of a constantly changing risk landscape. It provides a comprehensive analysis of Singapore’s primary money laundering (ML) risks, taking into account a wide range of qualitative and quantitative indicators related to threats, vulnerabilities, and control measures. The report highlights major ML threats such as fraud, including cyber-enabled fraud, organized crime, corruption, tax crimes, and trade-based money laundering.
The report singles out the banking sector as posing the highest money laundering risk due to the wide array of services it offers and the volume of transactions it handles. It states, “The banking sector has been assessed to pose the highest ML risk to Singapore.” The report also explains that banks are often exploited for various money laundering activities, including self-laundering, third-party laundering, and the misuse of corporate and individual accounts for layering and integration of illicit funds.
Furthermore, the report identifies significant risks associated with digital assets and cryptocurrencies, highlighting the emerging use of digital payment tokens (DPTs) for money laundering purposes. Criminals take advantage of these tokens through cyber-enabled fraud, ransomware, and darknet market transactions. To address these risks, MAS has introduced stringent regulatory measures under the Payment Services Act (PS Act).
Providers of digital payment tokens are required to obtain licenses and adhere to anti-money laundering and countering the financing of terrorism (CFT) requirements. MAS also conducts regular thematic inspections and offsite surveillance, and has issued guidance papers to increase industry awareness and control measures. Continuous engagement with the industry through townhalls, outreach sessions, and advisories is aimed at upholding strong AML/CFT standards in the DPT sector.
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