Singapore has released an Environmental Crimes Money Laundering (ML) National Risk Assessment (NRA) today. This assessment identifies the primary threats and vulnerabilities associated with environmental crimes ML in Singapore and suggests mitigation measures for government agencies, financial institutions (FIs), and Designated Non-Financial Businesses and Professionals (DNFBPs) to manage these risks.
Environmental crimes and their associated money laundering pose significant dangers to the environment and have wide-ranging impacts. Globally, crimes such as illegal wildlife trafficking and illegal logging generate an estimated US$110 billion to US$281 billion annually. Singapore’s risk exposure to environmental crimes ML is linked to its status as an international financial center and a key trading and transit hub, with a highly external-facing economy.
The Environmental Crimes ML NRA found that:
a) Singapore is susceptible to ML threats from illegal wildlife trafficking, illegal logging, and waste trafficking, which are prevalent in Southeast Asia.
b) Banks and cross-border payment service providers in Singapore are particularly vulnerable to being exploited for laundering proceeds from environmental crimes, due to their transnational nature.
c) Singapore has a robust and transparent legal and enforcement framework to detect and investigate ML, prosecute offenders, recover assets, and cooperate internationally on matters related to environmental crimes.
d) Despite the exposure, the risk of criminals using Singapore for environmental crimes ML is assessed as medium-low, considering the level of controls in place.
Singapore’s law enforcement and supervisory agencies will continue to be vigilant and take appropriate measures to mitigate the risks highlighted in the Environmental Crimes ML NRA.
FIs and DNFBPs should use the Environmental Crimes ML NRA to assess their risks and enhance their controls as needed. For a copy of the Environmental Crimes ML NRA, please refer to this link.
