Singapore has stated that its banking sector poses the highest money laundering risks to the city-state.
The mentioned statement was made after a scandal involving illegal assets worth more than 3 billion Singapore dollars (2.2 billion US dollars).
On Thursday, June 20, the Singapore government published a 126-page report, which contains an assessment of the risks of money laundering in this country. The authorities have recognized serious problems in the state’s quest to gain the ultra-rich and strengthen its reputation as an international financial and wealth hub. Singapore has become vulnerable to being used as a channel for money laundering, which was obtained as a result of financial fraud and other crimes committed abroad.
The authorities have monitored a wide range of money laundering methods applied in the country. In this case, among other things, methods of action are implied, including the use of bank accounts, payment accounts, shell companies, and other complex structures and arrangements.
The report, published on Thursday, states that creditors can become a channel for committing financial crimes. Also in this context, it is noted that it is banks that pose the most risk of money laundering.
Currently, there are more than 150 financial institutions in the Singapore banking system. Many of these lenders provide their clients with online services, which facilitates the process of making electronic money transfers.
The report also contains information that more than 1.5 billion Singapore dollars were seized from bank accounts after the money laundering scandal. These funds were in accounts belonging to 10 Chinese-born individuals who were convicted, and 17 other suspects who still have not been held responsible.
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