Singapore updates money laundering risk assessment. New report, published by local authorities, identifies digital payment tokens as high-risk.

The 126-page document covers sectors not included in a previous 2014 report, it adds precious stone and metal dealers to the list of concerns.

Banking industry poses highest money laundering risks. Banks are vulnerable due to large transaction volumes, serving high-risk consumers add some additional dangers, too. Banks are more susceptible to criminal exploitation due to their role in facilitating large transaction volumes and serving high-risk customers.

But it's digital payment token providers who stand out as high-risk. Authorities report an increase in cases involving these services.

Singapore has a small share of global digital token activities. However, officials closely monitor associated risks.

Other high-risk areas include cross-border money transfer services. External asset managers also pose significant threats.

The report is a collaborative effort, it involved supervisory and law enforcement agencies. Key money laundering threats stem from fraud and cyber-crime, organized crime, corruption, and tax evasion follow.

Criminals exploit Singapore's financial infrastructure. They often convert illicit funds into assets like real estate.

The Monetary Authority plans to amend the Payment Services Act, as this will expand regulation of digital token services.