We invite you to read through the latest Money Laundering National Risk Assessment (ML NRA) conducted by the Monetary Authority of Singapore (MAS), which highlights the pressing importance of robust KYC and AML practices, especially given the specific mention of our sector as high risk.

Key Highlights from the ML NRA:

  • Primary ML Threats: Includes fraud, organized crime, corruption, tax crimes, and trade-based ML.
  • High-Risk Sectors: Our sector – banking (including wealth management), corporate service providers, digital payment token service providers, cross-border money transfer service providers, licensed trust companies, real estate, and precious stones and metals dealers – are particularly noted.
  • Specific Concern for EAMs: EAMs have been identified as facing relatively higher ML risks.

Implications for EAMs:

  1. Enhanced Controls: The elevated risk profile necessitates continuous enhancement of our AML/CFT controls, including rigorous tax risk surveillance and effective implementation of measures.
  2. Ongoing Education: Keep up-to-date with AML/CFT developments and best practices. The AIWM, in collaboration with MAS, offers a set of AML/CFT FAQs to clarify key sector-specific concepts. Members should regularly check out these resources in the Member Area. [Go to AIWM website (www.aiwm.sg) > Member Area > Compliance Support Center > AIWM AML/CFT FAQs]
  3. Regulatory Engagement: MAS frequently collaborates with AIWM to discuss AML/CFT issues and enhance standards, emphasizing the importance of our ongoing partnership to maintain compliance and mitigate risks.

Action Points:

  • Review and Enhance KYC/AML Practices: Continually assess and update your AML/CFT controls in response to the latest risk assessments and regulatory expectations.
  • Stay Informed: Engage with ongoing market developments and regulatory updates. Participate in AIWM and MAS initiatives and training sessions.
  • Engage Proactively: Take an active part in industry discussions and share best practices within our community.

By diligently enhancing our AML/CFT frameworks and staying committed to rigorous compliance, we safeguard our sector against illicit activities and contribute to the integrity of Singapore’s financial system.

Thank you for your dedication to upholding the highest standards of compliance and risk management.

Best regards,

Bernard Ong
Lead for Regulatory and Advocacy
AIWM Singapore