Singapore’s central bank has released a report on money laundering risks, identifying the banking sector as the country’s highest risk. The report also highlights the dangers associated with digital assets and cryptocurrencies. To address these issues, the Monetary Authority of Singapore (MAS) has implemented strict regulations under the Payment Services Act (PS Act).
On June 20, the MAS presented the “Money Laundering Risk Assessment Report Singapore 2024,” which emphasizes Singapore’s ongoing efforts to strengthen its anti-money laundering (AML) framework in response to an evolving risk environment. The report provides a comprehensive analysis of Singapore’s primary money laundering (ML) risks, utilizing a range of qualitative and quantitative indicators related to threats, vulnerabilities, and control measures. It identifies key ML threats such as fraud, organized crime, corruption, tax crimes, and trade-based money laundering.
The report highlights the banking sector as posing the highest money laundering risk due to its wide range of services and transaction scale. It explains that banks are commonly used for various money laundering typologies, including self-laundering, third-party laundering, and the misuse of corporate and individual accounts for the integration of illicit funds.
In addition to the risks associated with the banking sector, the report also points out significant risks related to digital assets and cryptocurrencies. It notes that digital payment tokens (DPTs) have become emerging conduits for money laundering, as criminals exploit these tokens through cyber-enabled fraud, ransomware, and darknet market transactions. To address these risks, MAS has implemented strict regulatory measures under the PS Act, requiring digital payment token service providers to obtain licenses and comply with anti-money laundering and countering the financing of terrorism (CFT) requirements.
MAS conducts regular inspections and offsite surveillance, issues guidance papers, and engages with the industry to ensure robust AML/CFT standards in the DPT sector.
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