28 April 2021
On 26 March 2021, the Monetary Authority of Singapore (“MAS”) issued an infographic titled “Strengthening AML/CFT Controls of Digital Payment Token Service Providers”.
This infographic provides an overview of MAS’ Anti-Money Laundering and Counter-Terrorism Financing (“AML/CFT”) requirements and supervisory expectations for the Digital Payment Token (“DPT”) sector, and is intended to raise industry awareness among DPT service providers of sectoral money laundering and terrorism financing (“ML/TF”) risks, and provide additional information to support their implementation of effective controls.
The document serves to supplement existing AML/CFT requirements, and should be read in conjunction with MAS Notice PS-N02 on “Prevention of Money Laundering and Countering the Financing of Terrorism - Digital Payment Token Service” and accompanying Guidelines.
The infographic cautions that ML/TF risks posed by transactions of virtual assets can be potentially significant given their pseudononymity, speed, and cross-border nature. DPT service providers should conduct regular reviews of internal controls to keep pace with regulatory developments. The infographic sets out some considerations in relation to DPT service providers’ AML/CFT policies and procedures, enterprise-wide risk assessment, and AML/CFT compliance arrangement.