The report assessed that Singapore’s key threat areas, where cases involving virtual assets were observed, include cyber-enabled fraud, cybercrime through ransomware and thefts from wallets, and Money Laundering (ML) using Digital Payment Tokens (DPT). Other threats noted from international typologies and observations include illegal online gambling, drug offences, corruption, terrorism financing and proliferation financing.
Digital Payment Tokens Service Provider (DPTSP) sector is the most significantly exposed to ML/TF/PF risks associated with DPTs. Other sectors exposed to ML/TF/PF risks associated with DPTs include banks, licensed trust companies (LTCs), external asset managers (EAMs), as well as precious stones and precious metal dealers (PSMDs).
In conducting the enterprise-wide risk assessment, FIs should incorporate relevant findings from the risk assessments, and take into account the relevant threats and higher-risk sectors identified to assess the effectiveness of controls and ongoing monitoring of customers’ accounts and transactions.
For the full details, please refer to the MAS website https://www.mas.gov.sg/publications/monographs-or-information-paper/2024/virtual-assets-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.