Monetary Authority of Singapore: Digital payment tokens have become an emerging money laundering channel

According to Bitcoin.com, the Monetary Authority of Singapore (MAS) has recently released the "Singapore 2024 Anti-Money Laundering Risk Assessment Report". The report outlines Singapore's measures to continuously strengthen its anti-money laundering (AML) framework in response to constantly changing risk environments.The report provides a comprehensive analysis of Singapore's main money laundering (ML) risks, incorporating various qualitative and quantitative indicators related to threats, vulnerabilities, and control measures. It emphasizes major money laundering threats, such as fraud, especially online fraud, organized crime, corruption, tax crimes, and transaction-based money laundering.The report points out that banks have the highest money laundering risk due to their wide range of banking services and large transaction volumes. Banks are usually used for various types of money laundering, including self-laundering, third-party laundering, and the layering and integration of illegal funds through corporate and personal accounts.In addition, the report also highlights significant risks associated with digital assets and cryptocurrencies. The assessment emphasizes that digital payment tokens (DPTs) have become an emerging channel for money laundering. Criminals use these tokens to take advantage of online fraud, ransomware, and dark web market transactions. To reduce these risks, MAS has implemented strict regulatory measures under the Payment Services Act (PS Act). Digital payment token service providers must obtain a license and comply with anti-money laundering and counter-terrorism financing (CFT) requirements. MAS conducts regular thematic inspections and off-site supervision, and issues guidance papers to enhance industry awareness and control measures.