Money laundering risks in Singapore climb 79% in 2023: Moody’s

Tighter scrutiny sought for CSPs.

The number of money laundering risk cases in the city-state jumped by 79% in 2023 from 2022 amid a deluge of international transactions, according to Moody’s.

In a recent note, Choon Hong Chua, senior director and head of the financial crime practice group for APAC/Middle East at Moody’s, said that the Lion City continues to be susceptible to heightened money laundering risks given its open economy and the volume of transactions.

More and more shell companies are being created through corporate service providers (CSPs) in the city-state. Data from Moody’s showed that about 8% of the 1.7 million Singapore-registered entities have directors with an anomalous number of concurrent directorships or directorships across inactive companies.

“These patterns could suggest nominee directors are being used to mask ownership,” Moody’s said.

As part of enhancing due diligence and risk mitigation measures, Moody’s believes stronger scrutiny is needed for CSPs or legal persons who deal with these entities on behalf of clients.

The latest Money Laundering National Risk Assessment (NRA) report showed the banking sector, including wealth management, posed the highest money laundering risk in the city-state.

Follow the link s for more news on

MAS

Moody's Analytics

A NOTE FROM SINGAPORE BUSINESS REVIEW

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia