Monetary Authority of Singapore: The banking industry has the highest risk of money laundering, and digital payment tokens have become an emerging money laundering channel

The Monetary Authority of Singapore (MAS) recently released the "Singapore Money Laundering Risk Assessment Report 2024". The report outlines Singapore's efforts to continuously strengthen its anti-money laundering (AML) framework in light of the changing risk environment. The report provides an extensive analysis of Singapore's major money laundering (ML) risks, incorporating various qualitative and quantitative indicators related to threats, vulnerabilities and controls, highlighting major money laundering threats such as fraud, especially cyber fraud, organized crime, corruption, tax crime and transaction-based money laundering. The report points out that the banking industry has the highest money laundering risk due to its wide range of services and large transaction volumes. Banks are often used for various types of money laundering, including self-laundering, third-party money laundering, and the misuse of corporate and personal accounts to layer and integrate illegal funds. In addition, the report also points out significant risks associated with digital assets and cryptocurrencies. The assessment highlights that digital payment tokens (DPTs) have become an emerging money laundering channel. Criminals exploit these tokens through cyber fraud, ransomware and darknet market transactions. To mitigate these risks, MAS has implemented strict regulatory measures under the Payment Services Act (PS Act). Digital payment token service providers must obtain a license and comply with anti-money laundering and counter-terrorism financing (CFT) requirements. MAS regularly conducts thematic inspections and off-site supervision, and publishes guidance documents to increase industry awareness and control measures. (Bitcoin.com)