3 Minutes

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BACKGROUND

The Singapore Money Laundering National Risk Assessment (‘MLNRA24’) was released on 20 June 2024. The MLNRA24 produced by the Ministry of Home Affairs, Ministry of Finance and the Monetary Authority of Singapore synthesizes observations by agencies with collaboration of foreign counterparts, and information from a broad cross section of industry sources, including foreign counterpart on money laundering (ML) risks to Singapore. (The previous NRA edition was published in 2014.)

KEY FINDINGS

• Singapore’s key ML threats are fraud, particularly cyber-fraud, organized crime, corruption, tax crimes, and trade-based money laundering
• Among the Designated Non-Financial Businesses and Professionals (DNFBP) sectors, corporate service providers (CSPs) pose higher ML risks given the role they play in providing upstream services such as incorporation of companies. 
• The banking (including wealth management) sector poses the highest ML risks. 
• Various other financial sectors have been highlighted as vulnerable to ML risks including:
  •  External Asset Managers;
  • Cross-border Payment providers;
  • Digital Payment Token; and 
  • Licensed Trust Companies.

Type of risk	Type of entity
High ML risks	Banks
Medium High ML risks	DPTSPs; Payment Institutions with Cross; Border Money Transfer Services; Licensed Trust Companies (LTCs); and External Asset Managers (EAMs).
Medium Low ML Risks	Fund Management Companies (excluding External Asset Managers); Money Changers; Payment institutions without Cross-Border Money Transfers; Broker Dealers and Corporate; Finance Advisory Firms; and Moneylenders.
Lower ML Risks	Non-Bank Credit Card Companies; Approved Trustees; Finance Companies; Direct Life & Composite Insurers; Securities Depository; and Financial Advisers.

• Most commonly observed ML typologies:
  • Rapid pass-through of funds through bank accounts;
  • Misuse of legal persons such as shell companies; and 
  • Placement in high value assets.

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WHAT’S NEXT?

Managements of financial institutions and various other identified sectors are advised to: 

• Comprehensively update their risk assessments with the MLNRA24 findings which pertain to their industry.
• Augment AML controls accordingly

And more…

HOW CAN WE HELP?

We have broad and in-depth experience on AML operations. Find out more here.

Contact us to discuss how we can advise you to strengthen your AML/CFT policies, procedures, and controls across your organization.