Singapore issues Environmental Crimes Money Laundering National Risk Assessment

Singapore published an Environmental Crimes Money Laundering National Risk Assessment (NRA) on May 29, 2024. The report identifies key threats and vulnerabilities related to environmental crimes and outlines mitigation measures for government agencies, financial institutions (FIs), and Designated Non-Financial Businesses and Professionals (DNFBPs).

Singapore’s whole-of-government (WoG) and multi-pronged approach emphasises vigilance, private sector engagement, and enhanced institutional and public risk awareness. This strategy aims to implement effective, risk-targeted law enforcement and supervisory measures to mitigate the money laundering risks associated with environmental crimes.

Key points from the assessment include:

1. Threats and vulnerabilities:

Singapore is at risk of ML threats from illegal wildlife trafficking, illegal logging, and waste trafficking, prevalent in Southeast Asia.

Banks and cross-border payment service providers are particularly vulnerable due to their transnational operations.

2. Legal and enforcement framework:

Singapore has a strong and transparent framework to detect and combat ML, including investigations, prosecutions, asset recovery, and international cooperation.

3. Risk level:

Despite the exposure, the overall risk of criminals using Singapore for environmental crimes ML is assessed as medium-low.

4. Ongoing vigilance:

Law enforcement and supervisory agencies will continue to monitor and mitigate identified risks.

5. Recommendations for FIs and DNFBPs:

These entities should use the NRA findings to assess and enhance their own risk controls.

For the official document, click here.