SINGAPORE: Last week, the Ministry of Home Affairs, the Ministry of Law, and the Monetary Authority of Singapore released a new report on the money laundering threats to the country.
In 2023, Singapore saw the biggest money laundering scandal in its history, with around S$3 billion in assets seized.
The joint National Risk Assessment report from the three agencies, its first update since 2014, said that the banking sector, including wealth management, poses the highest money laundering risk to the country.
It also identified other non-financial businesses and professions that carry money laundering risks, including real estate, licensed trust companies, casinos and precious stones and metals sectors.
Interestingly, when it comes to casinos, illegal online gambling carries a higher risk than land-based gambling venues.
“Compared to terrestrial gambling, remote gambling gives greater cause for concern. First, it carries a higher degree of lucrativeness and a higher tendency to be transnational in nature.
Remote gambling operations are lucrative and can potentially become a source or conduit of funds for (money laundering) and other illegal activities,” the report pointed out.
It added that illegal online gambling is transnational and is on a large-scale basis, with bets taken from numerous players across several countries.
Also, remote gambling can be found practically everywhere. It has given people easy access due to the internet and the ubiquity of smartphones and other devices.
The report further pointed out that remote gambling was already criminalized a decade ago, covering individual gamblers, facilitators, agents, and runners.
Remote gambling from overseas operators is also against the law in the country as long as their customers are in Singapore.
Nevertheless, despite the laws and regulations against it, as well as enforcement actions from multiple agencies, syndicates have still been able to carry out illegal online gambling activities because of the ease of setting up or shutting down illegal online gambling sites.
Due to these illicit websites being hosted outside Singapore, law enforcement agencies have had a harder time clamping down on them.
Moreover, the syndicates carrying out these schemes have also used alternative payment methods, such as cryptocurrencies and illegal payment platforms, further making things difficult for the authorities.
As for actual casinos, there have been no instances where they are directly complicit in money laundering activities in Singapore.
The report said there have only been a few cases where criminal proceeds were converted to casino chips for self-laundering purposes. /TISG
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