MAS Outlines Expectations for Digital Payment Token Service Providers' AML/CFT Controls
The Monetary Authority of Singapore (MAS) has published an information paper on Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) supervisory expectations for Digital Payment Token Service Providers (DPTSPs). The paper highlights areas where controls typically break down, including policies that are not granular enough to guide staff, undocumented risk assessments, and screening that runs on stale cycles.
The case studies in the paper are specific to DPTSPs but the underlying lessons are universal. For compliance officers, this means translating MAS' expectations into repeatable, auditable steps across the financial crime compliance (FCC) risk management lifecycle.
According to the paper, blockchain analytics should be used as part of a holistic risk view, not just for post-onboarding monitoring. The paper also emphasizes that on-chain visibility must be fused with off-chain information to effectively manage AML/CFT risks.