Non-financial sectors with higher money laundering risk flagged

A review of Singapore's anti-money laundering regime has identified a number of non-financial sectors that are at higher risk of the crime, including property and casinos.

- Andrew Wong

The Money Laundering National Risk Assessment, which was released on June 20, also identified corporate service providers, licensed trust companies, and the precious stone and metal sector as being at higher risk of exploitation by fraud and organised crime.

Within the financial and banking sectors, the report noted that banking, including wealth management, poses the highest money laundering risks to Singapore, but added that there has been an increase in money laundering cases involving digital payment token service providers.

Digital payment tokens include cryptocurrencies.

The report by the Ministry of Home Affairs, Ministry of Finance and the Monetary Authority of Singapore said Singapore's position as an international financial centre and as a trading and transit hub with a high externally oriented economy exposes it to criminals looking to launder or move illicit funds and assets.

"Singapore also faces risks as a location for criminals to convert their illicit funds to other assets, such as real estate or precious stones and precious metals.