A Report by CYS Global Remit Legal & Compliance Office
Singapore has published an Environmental Crimes Money Laundering (ML) National Risk Assessment (NRA), identifying key threats and vulnerabilities to which Singapore is exposed. The assessment also outlines mitigation measures that government agencies, financial institutions (FIs), and Designated Non-Financial Businesses and Professionals (DNFBPs) can implement to address these risks.
Key Highlights from the Assessment
Impact of Environmental Crimes: Environmental crimes and the laundering of their proceeds pose significant threats to the environment and have a global impact. Annually, environmental crimes such as illegal wildlife trafficking and illegal logging generate an estimated US$110 billion to US$281 billion in criminal gains globally. Singapore's exposure to environmental crimes ML is heightened by its role as an international financial center, trading hub, and transit point, with a highly externally oriented economy.
Findings from the NRA:
Susceptibility to ML Threats: Singapore is particularly vulnerable to ML threats arising from illegal wildlife trafficking, illegal logging, and waste trafficking, prevalent in Southeast Asia.
Vulnerable Sectors: Banks and cross-border payment service providers in Singapore are especially susceptible to being misused for laundering proceeds from environmental crimes due to their transnational operations.
Legal and Enforcement Framework: Singapore boasts a robust and transparent legal and enforcement framework capable of detecting ML, pursuing investigations and prosecutions, recovering assets, and facilitating international cooperation in relation to environmental crimes.
Risk Level: Given the current exposure and control measures, there is a medium-low risk of criminals using Singapore for environmental crimes ML.
Ongoing Vigilance: Singapore’s law enforcement and supervisory agencies will continue to remain vigilant and take appropriate measures to mitigate the risks identified in the Environmental Crimes ML NRA.
This comprehensive assessment and the proactive steps outlined reinforce Singapore's commitment to combating environmental crimes and their associated money laundering activities.
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