- There has been a rise in the number of recorded incidents of money laundering using DPTs.
- The FIU and other Singaporean regulatory agencies contributed to the MLNRA report.
Providers of digital payment tokens (DPTs) pose serious threats to the integrity of the anti-money-laundering (AML) system, according to Singapore’s most recent Money Laundering National Risk Assessment (MLNRA).
Not included in the 2014 report, this one’s 126 pages are packed with additional dangers. Providers of DPT services and traders of precious metals and stones fall within this category.
Careful Eye on AML
It has been determined that the banking industry, which includes wealth management, presents the greatest dangers of money laundering. Because of their involvement in processing huge numbers of transactions and providing services to clients with high risk profiles, banks are more likely to be targeted by criminals.
Among the many high-risk subsectors in the financial industry, DPT service providers—also called virtual asset service providers—stand out. There has been a rise in the number of recorded incidents of money laundering using DPTs and other forms of abuse, as highlighted by the MLNRA.
Authorities in Singapore keep a careful eye on the hazards connected with DPT. Even though the country only accounts for a tiny fraction of worldwide operations. Payment companies that facilitate international money transfers and third-party asset managers are two other examples of high-risk financial services.
The Financial Intelligence Unit and other Singaporean law enforcement and regulatory agencies, together with business sector organizations and international bodies, contributed to the MLNRA report.
Due to its economic openness and position as a global financial center, Singapore is vulnerable to money laundering. In order to launder or move illegal funds, criminals take advantage of the country’s banking and corporate infrastructure.
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