Singapore has identified digital payment token (DPT) service providers, also known as virtual asset service providers, as a high-risk category within the financial sector in its updated Money Laundering (ML) National Risk Assessment (NRA).
The latest report, spanning 126 pages, highlights significant risks in the Anti-Money Laundering (AML) landscape, especially within the financial sector. It brings attention to new risk sectors that were not included in the previous report from 2014, such as virtual asset service providers and dealers of precious stones and metals.
High-Risk Categories in the Financial Sector
The banking sector, including wealth management services, is identified as posing the highest ML risks. Banks are particularly vulnerable to criminal exploitation due to their role in handling large transaction volumes and serving high-risk customers.
Within the financial sector, DPT service providers stand out as a high-risk category. The NRA report notes an increase in cases involving DPTs and various methods of exploitation. Despite Singapore’s relatively small share of global DPT activities, authorities are vigilant in monitoring the associated risks. Other high-risk sectors include payment institutions offering cross-border money transfer services and external asset managers.
Key Money Laundering Threats
The risk assessment report states that Singapore’s primary money laundering threats come from fraud, especially cyber-enabled fraud, organized crime, corruption, tax crimes, and trade-based money laundering.
Summary Review: Singapore’s updated ML National Risk Assessment underscores the heightened vulnerabilities posed by digital payment token service providers within the financial sector. By closely monitoring these risks and identifying new high-risk sectors, Singapore aims to strengthen its AML measures and safeguard its financial system against potential exploitation.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
