Singapore has released a National Risk Assessment (NRA) on environmental crime money laundering, highlighting the key threats and vulnerabilities associated with it.
this report To address these risks, it outlines mitigation measures for government agencies, financial institutions and designated non-financial business operators and professionals (DNFBPs).
Environmental crimes such as illegal wildlife trade and illegal logging generate an estimated US$110 billion to US$281 billion in criminal proceeds annually.
Singapore is an international financial centre and a major trade and transport hub, making it particularly vulnerable to such crimes.
The NRA said Singapore was vulnerable to the threat of money laundering from illegal wildlife trade, illegal logging and waste trade, which are rampant in Southeast Asia.
Banks and cross-border payment service providers are at particular risk of being used to launder the proceeds of these crimes because of their cross-border operations.
Despite these threats, Singapore has a strong and transparent legal and enforcement framework in place to detect, investigate, prosecute, recover assets from money laundering activities, and cooperate internationally on environmental crime issues.
The NRA concludes that, given existing regulations, there is a medium to low risk that criminals will use Singapore to launder money for environmental crimes.
Singapore’s law enforcement and regulatory agencies will remain vigilant and implement appropriate measures to mitigate these risks.
Financial institutions and DNFBPs are encouraged to use the survey findings to assess and strengthen their own risk management.
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