Environmental crimes, such as illegal wildlife trafficking and illegal logging, disrupt and harm our environment and eco-system with far-reaching and long-term impact for future generations. Such crimes are estimated to generate around US$110 billion to US$281 billion in criminal gains globally.
On 29 May 2024, the Monetary Authority of Singapore (“MAS“) published an Environmental Crimes Money Laundering National Risk Assessment (“NRA“), which:
(a) identifies the key threats and vulnerabilities in environmental crimes money laundering (“ECML“) that Singapore is exposed to; and
(b) outlines mitigation measures which government agencies, financial institutions (FIs) and Designated Non-Financial Businesses and Professionals (DNFBPs) can develop to address the risks.
Key findings of the NRA include:
(a) Singapore is a transit country for ECML. This stems from its geographical location along the Asian environmental goods supply routes, and its position as an international financial centre that may be used to facilitate illicit financing and trade flows.
(b) Singapore’s key ECML threats are assessed to be from illegal wildlife trade, illegal logging and waste trafficking. Such threats are commonly associated with trade-based money laundering.
(c) The sectors most exposed to ECML risks are banks and cross-border payment service providers. These sectors are more internationally oriented and are most vulnerable to being misused for ECML.
(d) Due to Singapore’s reasonably good level of controls, there is a medium-low risk of criminals using Singapore for ECML despite its exposure to ECML threats. Such controls include its strong and transparent legal and enforcement framework for the detection and investigation of money laundering crimes.
Click on the following links for more information (available on the MAS website at www.mas.gov.sg):
