SINGAPORE- Singapore’s banking sector, including wealth management, poses the highest money laundering risk in the city-state, the government said in a money laundering risk assessment report published on Thursday.
Banks had higher exposure to money laundering threats and could be more easily exploited due to the sheer volume of transactions they handle and their exposure to customers from high-risk jurisdictions, the home affairs ministry, the central bank and the finance ministry said in a statement.
This is the latest national risk assessment report since the previous one was published in 2014. The findings in the updated report will guide ongoing efforts to ensure that Singapore’s anti money laundering regime “keeps pace with the identified risks”.
The report comes after Singapore busted a $2.24 billion money laundering ring run by foreigners, with the last of 10 offenders sentenced on June 10.
The criminals held money in bank accounts in Singapore and converted some into real estate, cars, handbags and jewelry.
Since the money laundering case emerged last year, the government has set up an inter-ministerial panel to review the anti-money laundering regime and sharpened their policing of the inflows of wealth and wealthy individuals.
In the new risk assessment report, Singapore said its key money laundering threats stemmed from fraud – particularly cyber-enabled fraud – organized crime, corruption, tax crimes and trade-based money laundering.
The report also identified new risk sectors not included in the last report. These are digital payment token services providers and precious stones and precious metal dealers.
