The Singaporean government admitted in its latest report that as the country strives to develop into an international financial center, the banking industry is also facing very high risks of money laundering.
(The suspect in Singapore’s largest money laundering case in recent years denies the accusation, foreign media: banks’ ability to resist illegal funds is questionable)
Singapore banks face highest money laundering risks
The Singaporean government said in a 126-page report released on Thursday that Singapore's banking sector already poses the "highest" money laundering risk to the country, Bloomberg reported.
The authorities acknowledged that they have faced huge challenges in attracting ultra-high-net-worth individuals and promoting Singapore as an international financial center. Singapore is more susceptible to being used as a conduit for money laundering, and the related funds originate from financial fraud and other overseas illegal activities.
Banking industry exploited by financial crime
Singapore authorities have observed that criminals use a variety of money laundering techniques in the country, involving bank accounts, payment accounts, shell companies and other more complex structures. In particular, banks are easily used for financial crimes and have constituted the largest money laundering operation. risk.
There are more than 150 banks in Singapore's banking system, many of which offer online financial services to customers, making it easier to transfer funds electronically without having to visit a teller.
The lengthy report from the authorities comes in the wake of a scandal in Singapore involving more than S$3 billion ($2.2 billion) in illicit assets.
The report pointed out that more than S$1.5 billion was seized from bank accounts in a money laundering scandal involving 10 Chinese nationals, some of whom have been convicted, but 17 suspects are still at large. Other assets seized include cash, cryptocurrency, homes and other real estate, jewelry, watches and luxury bags.
Real estate, jewelry, and casinos have also become channels for money laundering
The report also mentioned other areas that are prone to money laundering, including the real estate, precious gems and casino sectors. Among them, private residential properties accounted for about 70% of more than 200 properties seized in recent cases and are regarded as one of the main channels for money laundering.
The report also cited actual cases and pointed out that a Singaporean gas station employee was suspected of using S$1.9 million in criminal proceeds to buy casino chips. After losing part of it, he cashed in the remaining chips and used the funds to pay for his car, mortgage and insurance. Finally, in 2019 Prosecuted for money laundering.
Bloomberg pointed out that in response to money laundering risks, Singapore has required family offices and hedge funds to provide more information and strengthened scrutiny of shell companies.
This article Financial Center Has Become a Money Laundering Paradise, Singapore Report: Domestic Banking Industry Has Become the Hardest Area for Money Laundering first appeared on Chain News ABMedia.