Singapore says the banking sector is the biggest money laundering risk

Singapore has identified banks as the entities posing the highest risk of money laundering in the country.

The Monetary Authority of Singapore (MAS), a government agency, said this in a national money laundering risk assessment published on Thursday (June 20).

“The role of banks in facilitating transactions in the financial system and their extensive network through which cross-border transactions can be conducted make banks a common channel for criminals,” the report said.

“In addition, banks are exposed to a higher proportion of customers with a higher risk of money laundering (including jurisdictions with a higher risk of money laundering), a high volume of cross-border transactions and a range of complex products and structures,” the report says.

While the banking sector tops the list, other sectors with a higher risk of money laundering include corporate service providers, real estate, casinos, licensed trust companies, gems and precious metals dealers, digital payment token service providers, payment institutions and third-party asset managers – according to the report.

Regarding the key risks related to money laundering, the report highlights financial fraud (in particular cyber fraud), organized crime, corruption, tax crimes and commercial money laundering.

Apart from this, other significant money laundering threats include environmental crimes, cybercrime and drug-related crimes, according to the report.

“As an international business, financial and trade center, Singapore is exposed to external threats arising from predicate crimes with overseas links,” the report said.

To prevent, detect and combat money laundering, the country works closely with both international and domestic stakeholders with the aim of ensuring that its anti-money laundering (AML) measures keep pace with evolving threats, the report said.

The report says that in addition to improving its regulatory framework, Singapore will continue to develop close partnerships between the public and private sectors.

“The risk assessment process is dynamic and Singapore will continue to monitor and make sense of risks on an ongoing basis to ensure that our risk understanding and risk mitigation measures remain current and effective,” the report said.

Authorities in the United States are also focusing on money laundering, with the U.S. Treasury saying in May that one of its priorities for 2024 is closing legal and regulatory gaps in the nation’s anti-money laundering and counterterrorism financing (AML) system. /CFT).