Expert Andreas Frank calls our attention to new laws which appear to insist on disclosure and punish hidden assets, but may not. He writes:
Singapore is Asia’s largest private banking center with offshore assets of about $850 billion, Boston Consulting Group data shows. Singapore is the second largest offshore center trailing only Switzerland which remains the world’s largest offshore financial center with about $2.2 tn of assets.
Switzerland is expected to remain the largest single offshore center globally, with about 25 percent of total offshore wealth by the end of 2017, compared with 26 percent in 2012. Singapore, in second place, is expected to increase its share from 10 percent to around 12 percent, according to the BCG report.
According to research on global financial trends from WealthInsight, Singapore will overtake Switzerland to become the world’s biggest offshore wealth centre by 2020,
The global private banking industry has total assets under management of $19.3 trillion, of which $8.3 trillion – or 42 per cent – is offshore and Switzerland currently holds $2.8 trillion of cash, the organisation says. By 2016, however, Switzerland’s figure is predicted to drop below $2.0 billion, WealthInsight predicts.
Switzerland holds 14.5 per cent of the global wealth industry’s AuM, second only to the US; offshore wealth – $2.1 trillion – makes up the vast majority of this money. Switzerland’s bank secrecy laws have come under relentless international assault from governments trying to halt an exodus of tax revenues. The impact on Switzerland from any shift in its status will be significant: more than 80 per cent of funds held in the country are for foreign clients.
The fight against money laundering, terrorist finance, tax evasion and organized crime has turned into a propaganda war. The OECD reported in December reported that 34 countries had failed to sign the OECD’s recommendation.
Against this background, it does not come as a surprise that the Monetary Authority of Singapore has released an inaugural “National Risk Assessment Report (NRA)” on money laundering and terrorist financing risks in Singapore which calls for tighter controls to combat money laundering and terrorist financing.
Based on the official data, there were 70 money laundering convictions under the Corruption Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act from 2009 to 2011. There were seven such convictions under the Moneylenders Act in 2011.
As for terrorist financing, there were a number of cases that were investigated, but there has not been any prosecution to date, as most cases involved terrorists who were self-financed.
The report noted that for pawnbrokers, money laundering and terrorist financing risks arise when debt repayment is made using illicit funds or stolen goods are pawned. The pawnbroking industry had total loans outstanding at over S$1 billion in 2012, the study showed. The number of pawn shops in the city increased to 191 that year from 114 in 2008.
For corporate service providers – firms that provide company incorporation and directorship services – these “may be abused by criminals to set up complex and opaque structures for illicit purposes”.
Other sectors identified as vulnerable to money laundering and terrorist financing risk are banks, casinos, remittance agents, money changers, internet-based stored value facility holders and online payment firms like Paypal and Alipay. Singapore authorities are closely monitoring virtual currencies such as Bitcoins that may be used for illegal activities and will consider regulation if needed, according to the report.
Remittance agents, who accept funds for transfer to individuals outside Singapore, and money changers operate in “cash-intensive” industries and offer greater risks of money laundering or terrorism financing, according to today’s report.
Total outward remittance from Singapore amounted to S$24.1 billion in 2012, while inward remittances were S$995 million, the government said in the study. Volumes in the money-changing business that year were S$36.8 billion. The implementation of controls in these industries isn’t as robust as in banks and MAS will ensure “enforcement efforts are further stepped up,” according to the report.
According to a joint statement by the Ministry of Home Affairs, the Ministry of Finance, and the Monetary Authority of Singapore, “relevant government agencies will be strengthening the legislative and supervisory framework through the year to address the risks in these sectors more effectively”.
“Singapore’s openness as an international transport hub and financial center exposes it to inherent cross-border” money laundering or terrorism financing risks, according to the study. MAS “has put in place a robust preventive regime. Nonetheless, there are areas for further enhancement.”
Singapore’s central bank is stepping up its anti-money laundering rules in line with global regulations following U.S. authorities’ investigation of several Swiss banks for their dealings on behalf of American clients. MAS made it a crime last July for clients to use financial institutions to evade tax. Singapore Approaches OffShore Asssets
More about on :
Corruption Reports
Offshore Assets and Disclosure
Source:
Frank-cs.org 