Singapore has released its Environmental Crimes ML National Risk Assessment (NRA), detailing the country’s exposure to environmental crimes and outlining measures to combat these threats.
According to MAS, this assessment is a significant step towards enhancing the nation’s resilience against money laundering activities tied to environmental crimes.
The NRA identifies several key threats and vulnerabilities that Singapore faces due to its status as an international financial centre and a trading hub. Notably, the assessment highlights that environmental crimes such as illegal wildlife trafficking, illegal logging, and waste trafficking are substantial sources of criminal proceeds, generating an estimated $110bn to $281bn annually on a global scale.
The assessment reveals that Singapore’s susceptibility to money laundering threats primarily arises from its strategic geographic position and its highly globalised economy. Banks and cross-border payment service providers, in particular, are noted as the most vulnerable sectors due to their transnational operations, which can be exploited by criminals to launder proceeds from environmental crimes.
Despite these vulnerabilities, the NRA commends Singapore’s robust and transparent legal and enforcement framework.
This framework is designed to detect and address money laundering activities, with strong capabilities in ML investigations, prosecution, asset recovery, and international cooperation related to environmental crimes. As a result of these controls, the NRA concludes that there is a medium-low risk of Singapore being exploited for money laundering activities stemming from environmental crimes.
To further mitigate these risks, Singapore’s law enforcement and supervisory agencies are committed to maintaining vigilance and implementing appropriate measures. This ongoing effort aims to enhance the country’s defence against the laundering of proceeds from environmental crimes, thereby protecting the environment and upholding the integrity of its financial system.
The release of this NRA underscores Singapore’s proactive approach in addressing the complex challenges posed by environmental crimes and their associated money laundering risks. As the nation continues to refine its strategies and frameworks, it sets a precedent for other financial hubs to follow in combatting these global issues.
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