In a statement, the Ministry of Interior, the Central Bank and the Ministry of Finance said banks are more vulnerable to money laundering threats and can be more easily exploited due to the volume of transactions they handle and their greater exposure to customers in high-risk jurisdictions.
This is the latest national risk assessment report since the previous one was released in 2014. The findings of the updated report will guide Singapore’s ongoing efforts to ensure that its anti-money laundering regime is “responsive to identified risks”.
The perpetrators deposited the funds in bank accounts in Singapore and converted some of it into property, cars, handbags and jewellery.
Since the money laundering scandal emerged last year, the government has set up an inter-ministerial committee to review the anti-money laundering system and has stepped up efforts to crack down on the influx of wealthy individuals and the wealthy.
In its new risk assessment report, Singapore said the main money laundering threats come from fraud (especially cyber-enabled fraud), organized crime, corruption, tax evasion and trade-based money laundering.
The report also identifies new areas of risk that were not included in the previous report: digital payment token service providers and precious stones and metals dealers.
“Singapore’s position as an international financial centre and trade and transport hub with a strongly outward-oriented economy exposes it to risks that criminals may exploit the openness of its economy, financial system and business infrastructure to launder or move illicit funds and assets,” the joint statement said.
Singapore has benefited from a surge in wealth flows into Asia thanks to its political stability, low taxes and friendly policies for family offices and trusts.
The Asian financial hub’s assets under management stood at S$4.9 trillion (US$3.6 trillion) in 2022. As of the end of 2022, 76% of Singapore’s assets under management were from outside Singapore.
The number of family offices and one-stop firms managing portfolios for wealthy individuals in the country rose to about 1,400 last year from 1,100 a year earlier, according to government statistics.
