Singapore will tighten regulations to prevent casinos from being misused to finance terrorism

KEY THREATS

In its assessment, Singapore identified the main threats to terrorist financing: from terrorist groups such as ISIS, Al-Qaeda and Jemaah Islamiyah, as well as potential spillover effects from Israel’s ongoing war with Hamas and tensions in the Middle East. Self-radicalized people who sympathize with the cause of terrorist groups, in particular ISIS, are also a threat.

“Far-right extremism also poses a growing security threat in many countries,” the authorities noted.

“While it has not gained significant popularity in Southeast Asia, we cannot rule out that its anti-Islam and anti-immigration rhetoric may resonate with some people.”

Authorities said the updated National Terrorism Financing Risk Assessment takes into account key developments since its last incarnation in 2020. These include the evolving global and regional terrorism landscape, the growth of the digital economy and financial services in Asia, and emerging typologies of terrorism financing risk.

As in the previous edition, the 2024 Risk Assessment noted that the collection and transfer of funds to terrorists and terrorist activities abroad remains relevant in the Singapore context.

Authorities said self-radicalised individuals continued to pose the greatest terrorism financing threat to Singapore.

The key terrorist financing risk areas in 2024 are largely similar to those identified four years ago:

• Remittances are classified as high-risk, and cross-border internet payments have been identified as a potential new channel for terrorism-financing activities.
• Banks are at medium-high risk, and new cross-border fast payment systems have been identified as a potential new channel for financing terrorist activities.
• Digital payment token service providers have been moved from medium-low to medium-high risk.
• Non-profit organizations remain medium to low risk, and foreign online crowdfunding has been identified as a new terrorism financing typology of concern.
• Cross-border cash flows continue to pose medium to low risk.
• Gemstones, precious metals and precious products also remain in the medium-low risk group.

The latest report supports the goals of the National Counter Terrorism Financing Strategy, launched in 2022, which includes activities to prevent, detect, investigate and enforce aspects of terrorism financing.

Singapore will continue to work with industry players to implement strategies and measures to combat terrorism financing threats, authorities said.

They will also seek to work closely with foreign counterparts, international organizations and standardization bodies such as FATF.