The government of Singapore stated in money laundering risk assessment report released on Thursday that the city-state’s banking industry, particularly wealth management, presents the greatest risk of money laundering.
According to a statement from the home affairs ministry, the central bank, and the finance ministry, banks were particularly vulnerable to money laundering concerns because of the amount of transactions they process and the exposure to customers from high-risk jurisdictions.
The most recent national risk assessment report has been available since it was released in 2014. Ongoing efforts to guarantee that Singapore’s anti-money laundering regime “keeps pace with the identified risks” will be guided by the conclusions in the updated report.
Laptops 1000The information was obtained when a $2.24 billion foreign money laundering operation was discovered in Singapore, where the final ten criminals were convicted on June 10.
The criminals kept cash in Singaporean bank accounts, which they later exchanged for jewelry, automobiles, houses, and purses.
The government has intensified its monitoring of wealth inflows and affluent individuals since the money laundering case surfaced last year. To examine the anti-money laundering framework, an interministerial council has been established.
According to the latest risk assessment study, organized crime, corruption, tax offences, trade-based money laundering, and fraud—particularly cyber-enabled fraud—are Singapore’s main threats to money laundering.
New risk sectors that were left out of the previous study were also highlighted in this one.
These include merchants of precious metals and stones as well as providers of digital payment token services.
“Singapore’s position as an international financial centre and as a trading and transit hub with a highly externally oriented economy exposes it to the risks of criminals exploiting our economic openness, financial system and business infrastructure to launder or move illicit funds and assets,” said the joint statement.
