Singapore released today an Environmental Crimes Money Laundering (ML) National Risk Assessment (NRA), shedding light on the identified threats and vulnerabilities in environmental crimes ML. The assessment also suggests mitigation measures for government agencies, financial institutions (“FIs”), and Designated Non-Financial Businesses and Professionals (“DNFBPs”) to address these risks.
Environmental crimes, including illegal wildlife trafficking and illegal logging, have significant global criminal gains estimated between US$110 billion to US$281 billion annually. Singapore’s exposure to environmental crimes ML is attributed to its role as an international financial center and a trading and transit hub, with a predominantly externally-oriented economy.
Key findings from the Environmental Crimes ML NRA include:
- Singapore faces ML threats originating from illegal wildlife trafficking, illegal logging, and waste trafficking, prevalent in Southeast Asia.
- Among Singapore’s sectors, banks and cross-border payment service providers are deemed most susceptible to misuse for laundering proceeds from environmental crimes due to their transnational nature.
- Singapore possesses a robust legal and enforcement framework for detecting and prosecuting ML related to environmental crimes.
- Despite exposure, Singapore presents a medium-low risk for criminals utilizing it for environmental crimes ML.
Singapore’s law enforcement and supervisory agencies pledge continued vigilance and appropriate measures to mitigate identified risks. Additionally, FIs and DNFBPs are encouraged to refer to the Environmental Crimes ML NRA for assessing risks and enhancing controls as necessary. The Environmental Crimes ML NRA document is available for reference via this link.
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