Asian financial hub Singapore has said it was scrutinising trade invirtual currencies such as Bitcoin as well as precious stones and metalsto forestall new forms of illicit financing by criminals andterrorists.
According to AFP news agency, in an inauguralreport on money laundering and terrorist financing risks, the city-statesaid these sectors were identified for further study "as technologyevolves and criminals become more sophisticated".
"Authoritieswill seek to better understand how money laundering and terroristfinancing can be carried out through these channels," said the jointreport by the finance and home affairs ministries as well as theMonetary Authority of Singapore (MAS).
It said the governmentwould "review international best practices, to determine whether anysafeguards and mitigating measures are needed".
The report saidvirtual money and precious metal-backed currencies carry the risk ofbeing abused due to their anonymity, cross-border nature and lowtransaction costs.
The MAS, which serves as the city-state'scentral bank, "is closely monitoring developments in this area and willconsider the need for regulation if necessary", the report said.
Bitcoin, the world's most popular form of electronic money, madeheadlines last year when US authorities closed the Silk Road websitewhen it was found the currency was being used to buy illegal drugs,forged documents, hacker tools and even the services of hitmen.
The report also said Singapore was monitoring the trade in precious stones and metals.
"There are international typologies on the use of precious stones andmetals as a tool to launder money, particularly as a store-of-value tomove illicit proceeds easily," it added.
The bank said of 22sectors that were assessed, the city's vast financial sector remainedamong the most vulnerable to abuse owing to the large number oftransactions that take place and its wide international reach.
Singapore houses the regional offices of some of the world's topfinancial institutions and its total assets under management are nowaround 1.4 trillion SGD (1.02 trillion USD), according to the MAS.-VNA
According to AFP news agency, in an inauguralreport on money laundering and terrorist financing risks, the city-statesaid these sectors were identified for further study "as technologyevolves and criminals become more sophisticated".
"Authoritieswill seek to better understand how money laundering and terroristfinancing can be carried out through these channels," said the jointreport by the finance and home affairs ministries as well as theMonetary Authority of Singapore (MAS).
It said the governmentwould "review international best practices, to determine whether anysafeguards and mitigating measures are needed".
The report saidvirtual money and precious metal-backed currencies carry the risk ofbeing abused due to their anonymity, cross-border nature and lowtransaction costs.
The MAS, which serves as the city-state'scentral bank, "is closely monitoring developments in this area and willconsider the need for regulation if necessary", the report said.
Bitcoin, the world's most popular form of electronic money, madeheadlines last year when US authorities closed the Silk Road websitewhen it was found the currency was being used to buy illegal drugs,forged documents, hacker tools and even the services of hitmen.
The report also said Singapore was monitoring the trade in precious stones and metals.
"There are international typologies on the use of precious stones andmetals as a tool to launder money, particularly as a store-of-value tomove illicit proceeds easily," it added.
The bank said of 22sectors that were assessed, the city's vast financial sector remainedamong the most vulnerable to abuse owing to the large number oftransactions that take place and its wide international reach.
Singapore houses the regional offices of some of the world's topfinancial institutions and its total assets under management are nowaround 1.4 trillion SGD (1.02 trillion USD), according to the MAS.-VNA
