Singapore’s requirements are consistent with international standards, namely those of the Financial Action Task Force (FATF). MANAGE TECHNOLOGY AND CYBER RISKS Another risk that MAS has sought to address early on is technology and cyber related risk. MAS is one of the earliest regulators to impose on digital asset players the same cyber hygiene standards and technology risk management principles that is expected of other financial institutions. But technology and cyber risks are continually evolving, for example, coding bugs in smart contracts and compromise of digital token wallets or their encryption keys. MAS is reviewing measures to manage these and other technology and cyber risks, including further requirements to protect customers’ digital assets and uplift system availability. These steps are in line with what other jurisdictions are considering, including in the EU and Japan. SAFEGUARD AGAINST HARM TO RETAIL INVESTORS MAS has since 2017 been reiterating the risks of trading in cryptocurrencies. Prices of cryptocurrencies are highly volatile, driven largely by speculation rather than any underlying economic fundamentals. It is very risky for the public to put their monies in such cryptocurrencies, as the perceived valuation of these cryptocurrencies could plummet rapidly when sentiments shift. We have seen this happen repeatedly. MAS has issued numerous advisories warning consumers that they could potentially lose all the monies they put into cryptocurrencies. Just take for example Luna, the sister token of the so-called stablecoin TerraUSD. Luna was, at one point, worth over $ but tumbled to zero. MAS has taken early decisive steps to mitigate consumer harm.

This is consistent with the Terrorism Financing Regional Risk Assessment findings at the 2nd CTF Summit in 2016 in Bali, where one of the priority actions identified was for FIUs to improve the visibility and insights into the nature of terrorism financing in the region. The idea is intended to help FIUs gain better insights into the role of financial and transit hubs in regional and international terrorism financing networks. Closer international cooperation Another area to ensure an effective mitigating strategy requires closer regional and global cooperation, particularly in the sharing of intelligence and technical know-how. Terrorism and terrorism financing are global issues that demand global solutions. Sharing of intelligence and expertise across borders will go a long way towards enhancing the effectiveness of our risk management framework. In this regard, the various working groups under the CTF Summits, the Financial Intelligence Consultative Group and International Community of Experts have done commendable efforts and initiatives in building capacity and sharing operational experiences in the region. This must continue to be strengthened given the challenges that we will face. Conclusion The fight against terrorism financing is an on-going battle that will continue to evolve in line with the ever-changing landscape of the financial industry. In the era of rapid technological advancements, it is essential that the financial sector’s risk management strategy remains agile in order to mitigate emerging risks.