The Monetary Authority of Singapore (MAS) has published a new report on money laundering risks, categorizing crypto tokens and service providers as high-risk within the financial sector.
According to the report, there has been a notable rise in reported incidents involving digital payment tokens (DPTs), highlighting various vulnerabilities through which DPTs can be exploited.
In September 2023, Singapore witnessed a significant money laundering case involving cryptocurrencies, with reports indicating that approximately $3.8 million in crypto assets were withdrawn from a Binance account belonging to one of the accused while under remand.
Angela Ang, Senior Policy Advisor at TRM and former Deputy Director at MAS, emphasized the historic scale of the case, noting that the inclusion of cryptocurrencies in laundering activities underscores their growing role in major financial crime investigations.
Earlier in April, MAS enhanced its regulatory oversight of cryptocurrencies to promote the constructive adoption of blockchain technology while addressing money laundering risks. These regulatory updates, which have been under development for several years, aim to provide clarity on critical aspects of the crypto ecosystem.
Singapore is Closely Monitoring Crypto Sector Money Laundering Risks
While digital payment token (DPT) activities in Singapore constitute a small percentage of global transactions, authorities are vigilant in monitoring associated risks within the sector.
In addition to DPTs, payment institutions offering cross-border money transfer services are identified as posing higher risks of money laundering according to jurisdictional assessments.
Singapore continues to prioritize the review and implementation of measures aimed at mitigating these identified risks.
In April, MAS introduced regulatory changes to strengthen anti-money laundering (AML) rules specifically targeting participants in the cryptocurrency industry. These adjustments aim to enforce safeguards for users and enhance financial stability-related requirements.
