Financial Crime World

Singapore Unveils Updated Money Laundering National Risk Assessment Amidst Evolving Global Threats

Introduction

In an effort to stay ahead of the evolving global threat of money laundering (ML), Singapore has published its updated Money Laundering National Risk Assessment (NRA). This assessment brings together insights from local supervisory and law enforcement agencies, as well as feedback from private sector entities and foreign authorities.

Key Findings

  • Global Position: Singapore’s strategic position as an international financial center and trading hub makes it vulnerable to criminals exploiting its economic openness, financial system, and business infrastructure to launder or move illicit funds.
  • Risks: The updated NRA identifies key ML threats, including:
    • Fraud orchestrated by criminal syndicates located overseas
    • Foreign predicate crimes like organized crime, corruption, tax crimes, and trade-based money laundering
    • Illicit funds flowing through bank accounts
    • Misuse of legal persons such as shell companies
    • Placement of illegal funds in high-value assets

Sector-Specific Risks

  • Banking Sector: The banking sector, particularly wealth management, poses the highest ML risks to Singapore due to its role in facilitating large volumes of transactions.
  • Designated Non-Financial Businesses and Professions (DNFBP): Sectors like corporate service providers, real estate, licensed trust companies, casinos, and precious stones and metals also pose higher ML risks.

Emerging Risks

  • Digital Payment Token Services Providers: Virtual assets service providers have seen an increase in reported cases and pose a significant risk due to the ease with which they can be exploited.
  • Payment Institutions: Payment institutions providing cross-border money transfer services and external asset managers also face higher ML risks.

Commitment to Combating Money Laundering

Singapore remains committed to reviewing and implementing measures to address identified risks. The updated NRA will guide its efforts in ensuring that its anti-money laundering regime keeps pace with evolving threats. The assessment serves as a guide for all stakeholders, including financial institutions and DNFBPs, to strengthen their implementation of risk-based measures in the fight against money laundering.