On July 1, the Monetary Authority of Singapore (MAS) published an updated version of the National Risk Assessment (NRA) and National Strategy to Combat Terrorist Financing (CTF). According to the new requirements, Digital Payment Token (DPT) service providers operating in Singapore are now classified as having a medium to high level of risk in the national regulator’s grading system.
The new rules place special emphasis on companies providing cross-border online payment services to crypto investors, who are classified by MAS as posing the highest risk. These companies are identified as potential channels for illegal activities related to money laundering and terrorist financing.
Tong Leng Jeng, Director of MAS’s Anti-Money Laundering Department, emphasized, «Maintaining Singapore’s reputation as a reliable financial center is critically important for our continued development.» This statement underscores Singapore’s commitment to maintaining high standards of financial control and fighting financial crimes.
The new risk assessment criteria require bankers and participants in Singapore’s crypto market to strengthen financial control measures and conduct more thorough monitoring of suspicious transactions. This includes detecting and preventing the use of transit accounts and dropshipping services that can be used by criminals to conceal illegal activities.
Furthermore, amendments to the Payment Services Act require Singaporean cryptocurrency companies to register with MAS. The amendments require companies to segregate client assets from their own funds, provide regular accounting reports, and implement reliable technical tools to protect digital assets.
