Crypto Tokens and Services Considered “High Risk” for Money Laundering, says Singapore MAS
The Monetary Authority of Singapore (MAS) has issued a new report on money laundering risks, categorizing crypto tokens and service providers as “high risk” within the financial sector.
The report stated, “There has been a rise in reported cases involving digital payment tokens (DPTs), and there are various ways in which DPTs can be exploited.”
Singapore witnessed a notable case of money laundering in September 2023, which is arguably one of the most severe cases. According to reports, approximately $3.8 million worth of cryptocurrencies were withdrawn from a Binance account belonging to one of the accused individuals while he was in custody.
Angela Ang, TRM’s Senior Policy Advisor and former MAS Deputy Director, emphasized the historical significance of the case. She stated, “The involvement of cryptocurrencies in money laundering activities demonstrates how they are increasingly being utilized in major financial crime cases.”
In April, MAS enhanced its regulatory oversight of cryptocurrencies to promote the productive utilization of blockchain technology while addressing money laundering risks. Some of these regulatory amendments have been in the works for several years and aim to bring clarity to various aspects of the crypto ecosystem.
While digital payment token activities in Singapore account for a small percentage of global activities, the country’s authorities are closely monitoring the associated risks. In addition to DPTs, payment institutions providing cross-border money transfer services are considered to have a higher risk of money laundering.
The jurisdiction of Singapore is committed to reviewing and implementing appropriate measures to tackle the identified risks.
In April, MAS implemented changes to strengthen anti-money laundering rules for crypto players, with the aim of ensuring user protection and maintaining financial stability.
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