Terrorism Financing National Risk Assessment 2020
The Terrorism Financing National Risk Assessment (“TF NRA”) seeks to further deepen the understanding by law enforcement agencies, supervisors/regulators and the private sector of Singapore’s key TF threats and vulnerabilities, so that appropriate prevention and mitigation measures may be taken. This TF NRA is the culmination of experience and observations from all relevant competent authorities over the past few years, and includes inputs from the private sector and academia.
The TF NRA has found that:
Singapore continues to be exposed to TF threats posed by terrorist groups both regionally and internationally, in particular the propensity for individuals in Singapore to be radicalised and influenced to carry out TF activities.
Certain sectors are more inherently vulnerable to TF threats, given the relative ease in which their services may be accessed, coupled with Singapore’s status as a financial and transport hub and proximity to countries exposed to terrorism activities.
While there have been no cases detected locally to-date, we are aware of some TF activities facilitated by precious stones and precious metals (“PSPM”) internationally. PSPM are vulnerable to TF activities as they have high intrinsic value in a relatively compact form and tend to maintain or increase their value over time. This means that PSPM could be a good store of value and accepted as an alternative to monies, whether in Singapore or in conflict-ridden and terror-prone states.
There are varied levels of TF risk awareness and controls across the precious stones and precious metal dealers (“PSMD”) sector due to the nascency of the regulatory regime. Authorities will continue to monitor and raise the sector’s awareness of TF risks, and prioritise the monitoring and supervision of higher risk PSMD.
Competent authorities in Singapore are cognisant of our TF threats and take a whole-of-government approach to combatting them. Our law enforcement agencies have robust capabilities to counter TF, as evidenced by the TF convictions in recent years. Supervisors and relevant authorities have been engaging relevant private sector entities on their TF risks, and this has improved their risk awareness and understanding, and allowed them to strengthen their measures to mitigate TF risks.
Private sector entities should continue to incorporate the TF NRA findings in their risk-based approach to countering TF.
Click here for the full TF NRA report