Banks are the main focus of money laundering: alert in Singapore

It has been repeatedly claimed that bitcoin (BTC) and other cryptocurrencies are used as means of money laundering. However, Singapore’s monetary authorities maintain that it is traditional banks that present a greater risk of being used for money laundering.

In a report, the Monetary Authority of Singapore (MAS) highlighted that The banking sector “represents the greatest risk of money laundering.” This is because the role of these traditional institutions for cross-border transactions “makes banks a common channel for criminal exploitation.”

“In addition, banks are exposed to a higher proportion of clients with higher money laundering risks (…), a high volume of cross-border transactions and a range of complex products and structures,” highlights the Monetary Authority of Singapore.

According to that institution, financial criminals in Singapore have been observed using a “wide variety of laundering techniques.” One of them is illicit funds, which “They are most commonly laundered through bank accounts.”

This happens particularly with fast cross-border transfers and, in general, “through the use of third parties,” says the entity.

Likewise, the study observes that corporate and individual bank accounts “are conduits exploited by money launderers,” especially when foreign criminal groups “and professional money launderers” are involved.

The MAS or the Central Bank of Singapore determined that illegal online gambling They are one of the ways for money laundering. A recent case that illustrates this problem involved the laundering of more than S$3 billion through these platforms, part of which was deposited into Singapore bank accounts.

In such a situation, Singaporean authorities committed to “work closely” with national and international entities “to prevent, detect and enforce the law against money laundering.”

They maintain that, as an international center for business, finance and trade, “Singapore must remain vigilant to the rapidly evolving money laundering threat landscape.”

That’s why they point to “continuously review and improve” your approach of the entire system to prevent and detect money laundering, so that “solid defenses” are guaranteed.

“Singapore authorities will continue to develop close partnership and collaboration between the public and private sectors to enable more timely identification and detection of money laundering,” insists the MAS.

Cryptocurrencies in second order

Secondly, the Monetary Authority of Singapore identified financial crime risks associated with cryptocurrencies. In detail, they highlight that money laundering groups “may use alternative payment methods, such as digital assets,” which makes it difficult to detect suspicious transactions or trace money.

The bank highlights that while cyber fraud proceeds are frequently laundered through individual and corporate bank accounts, Other methods have been observed, such as payment tokens and gift cards.

“Police have observed cases where victims were tricked into using fiat money to purchase tokens, which were traced to various private wallets and, sometimes, cryptocurrency exchanges,” the monetary entity says.

However, they highlight that traditional methods, such as banks, remain the main strategy of financial criminals to launder their profits.

The latter, discarding the narrative that bitcoin and crypto assets are the type of money preferred by criminals for this type of illicit activities. Something that other institutions of the traditional financial system have alleged for years, without considering the clear preference of financial criminals for fiat moneysuch as the US dollar and, in this case, the Singapore dollar.