The National Risk Assessment (NRA) provides an overview of Singapore’s key ML risks. The NRA includes the money laundering exposures and vulnerability in various sectors, with case studies and typologies.
The key highlights are:
- Key ML threats stem from fraud, particularly foreign and domestic cyber-enabled fraud. Other key ML threats relate to foreign predicate crimes such as organised crime, corruption, tax crimes, and trade-based money laundering.
- Most common ML typologies include: (i) illicit funds flowing into or through Singapore via bank accounts; (ii) misuse of legal persons such as shell companies to channel illicit funds; and (iii) placement of illicit funds in high value assets such as real estate and precious stones and metals.
- The banking (including wealth management) sector is assessed to pose the highest ML risks.
- Among the designated non-financial businesses and professions (DNFBP) sectors, corporate service providers pose higher ML risks. Other higher risk sectors include real estate, licensed trust companies, casinos and precious stones and metals sectors.
- Within the financial sectors, a higher risk sector of note would be the digital payment token (DPT) services providers (or virtual assets service providers). Other sectors within the financial industry posing higher ML risks are payment institutions providing cross-border money transfer services (including remittance agents), and external asset managers.
- External asset managers and licensed trust companies are susceptible as they facilitate fund management through the use or management of complex ownership structures.
Financial institutions (FIs) and DNFBPs should refer to the findings in this NRA to assist them in their risk assessments and implementation of risk mitigation.
FIs and DNFBPs, especially entities in sectors which are assessed to pose higher ML risks, should also take reference from the ML NRA in assessing their risks and enhance their controls accordingly.
For the full details, please refer to the MAS website https://www.mas.gov.sg/publications/monographs-or-information-paper/2024/money-laundering-national-risk-assessment
Disclaimer: The information, views or opinions expressed are provided for general information and should not be relied upon as legal or professional advice.