Singapore National Risk Assessment (NRA) 2024

Singapore National Risk Assessment (NRA) 2024

Singapore is a member of the World Trade Organisation (WTO) and holds the reputation of being an open and pro-business economy focused on growth without compromising on ethics. Singapore also has 10 free trade zones (FTZ) focused on facilitating business growth. Additionally, Singapore has extensive Free Trade Agreements (FTAs) in place with 27 countries. One such example of an FTA is the GCC (Gulf Cooperation Council ) and Singapore Free Trade Agreement (GSFTA), which have nominal or non-existent tariffs on multiple types of goods and services.

Singapore understands that with economic growth and global opportunities, its economy and businesses operating within are at the risk of being misused as conduits by criminals to further their illegal operations by injecting their illicit funds into legitimate financial system. Singapore is a heavily regulated country with multiple laws in place to curb the incidents.

The Permanent Secretaries of Ministry of Home Affairs (MHA), Ministry of Finance, and Managing Director of Monetary Authority of Singapore (MAS) have co-chaired the AML/CFT Steering Committee (AML/CFT SC). The AML/CFT SC through its Money Laundering NRA published in June 2024 has taken a pre-emptive approach towards combating money laundering(ML), financing of terrorism (FT) and proliferation financing (PF) risks.

The Money Laundering National Risk Assessment (NRA 2024) aims to provide the law enforcement agencies, regulators and supervisory bodies, and businesses in Singapore with a comprehensive report of major ML/FT and PF risks posed to the country itself and the sectors such as the Designated Non-Financial Businesses and Professions (DNFBPs), the Financial Sector and the Free Trade Zones.

The Money Laundering Risk Assessment Report, Singapore helps regulated entities such as the:

  • Corporate Services Providers (CSPs)
  • Real Estate Agents/Developers
  • Casinos
  • Precious Stones and Precious Metals Dealers
  • Lawyers
  • Accountants
  • Pawnbrokers
  • Digital Payment Token Services Providers
  • Payment institutions with cross-border money transfer services

in identifying whether they are categorised as businesses falling under the category of:

  • Medium High ML risk,
  • Medium Low ML risk, or
  • Lower ML risk

the basis on which they can conduct a revised Enterprise-Wide Risk Assessment (EWRA) to ensure continued compliance of their AML/CFT and CPF Internal Policies, Procedures, & Controls (IPPC) with the latest findings of the Singapore NRA 2024.