A Report by CYS Global Remit Legal & Compliance Office
Singapore's latest national risk assessment has identified precious stones, metals, and digital payments as new areas of heightened risk for money laundering activities.
The updated Money Laundering National Risk Assessment (ML NRA) is part of Singapore’s ongoing efforts to maintain an effective enforcement regime amidst evolving economic and geopolitical conditions. This update was announced in a joint press release by the Ministry of Home Affairs (MHA), Ministry of Finance, and the Monetary Authority of Singapore (MAS).
The last assessment, published in 2014, has been revised to incorporate new risks observed over the past decade by Singapore’s enforcement agencies, its financial intelligence unit—the Suspicious Transaction Reporting Office (STRO)—as well as private sector entities and international counterparts.
The report underscores that economic and geopolitical shifts have amplified the risks faced by Singapore as an international financial, trading, and transit hub. Criminals may exploit Singapore's open financial system and business infrastructure to launder or transfer illicit funds and assets. Additionally, they may use Singapore to convert their illegal gains into other assets, such as real estate or precious stones and metals.
The increasing prevalence of technology that facilitates rapid, large cross-border transactions further exacerbates these risks.
Mr. David Chew, Director of the Singapore Police Force’s Commercial Affairs Department and head of Singapore’s delegation to the Financial Action Task Force (FATF), highlighted the critical role of Singapore’s national strategy against money laundering. He emphasized the focus on prevention, detection, and enforcement to safeguard the integrity of the financial system. Chew noted that Singapore continues to face significant money laundering threats from corruption, tax evasion, and trade-based activities, with growing concerns about cyber-enabled fraud and foreign organized crime compared to previous assessments.
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