Singapore’s banking sector, together with wealth administration, poses the best cash laundering threat within the city-state, the federal government mentioned in a cash laundering threat evaluation report revealed on Thursday.
Banks had greater publicity to cash laundering threats and could possibly be extra simply exploited as a result of sheer quantity of transactions they deal with and their publicity to prospects from high-risk jurisdictions, the house affairs ministry, the central financial institution and the finance ministry mentioned in an announcement.
That is the newest nationwide threat evaluation report because the earlier one was revealed in 2014. The findings within the up to date report will information ongoing efforts to make sure that Singapore’s anti cash laundering regime “retains tempo with the recognized dangers.”
The report comes after Singapore busted a $2.24 billion cash laundering ring run by foreigners, with the final of 10 offenders sentenced on June 10.
The criminals held cash in financial institution accounts in Singapore and transformed some into actual property, automobiles, purses and jewellery.
For the reason that cash laundering case emerged final yr, the federal government has arrange an inter-ministerial panel to overview the anti-money laundering regime and sharpened their policing of the inflows of wealth and rich people.
Within the new threat evaluation report, Singapore mentioned its key cash laundering threats stemmed from fraud – notably cyber-enabled fraud – organized crime, corruption, tax crimes and trade-based cash laundering.
The report additionally recognized new threat sectors not included within the final report. These are digital cost token providers suppliers and valuable stones and valuable metallic sellers.
“Singapore’s place as a world monetary middle and as a buying and selling and transit hub with a extremely externally oriented financial system exposes it to the dangers of criminals exploiting our financial openness, monetary system and enterprise infrastructure to launder or transfer illicit funds and belongings,” the joint assertion mentioned.
Singapore has benefited from sturdy inflows of wealth into Asia because of its political stability, low taxes, and insurance policies favorable in direction of household workplaces and trusts.
The Asian monetary hub had belongings beneath administration of S$4.9 trillion ($3.6 trillion) in 2022. As at finish 2022, 76% of Singapore’s belongings beneath administration originated from exterior Singapore.
The variety of household workplaces or one-stop companies that handle the portfolios of the rich within the city-state rose to round 1,400 final yr from 1,100 a yr in the past, based on authorities statistics.
($1 = 1.3513 Singapore {dollars})
(Reporting by Yantoultra Ngui and Xinghui Kok; modifying by Stephen Coates)
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