Singapore’s Anti-Money Laundering Regulations: What You Need to Know
In an effort to combat money laundering and terrorist financing, the Monetary Authority of Singapore (MAS) has implemented a range of regulations and guidelines for financial institutions. Here are some key aspects of Singapore’s anti-money laundering (AML) laws.
Identifying Beneficial Ownership
Financial institutions in Singapore are required to identify and verify the beneficial ownership of clients. This includes:
- Identifying directors
- Verifying shareholders
- Identifying ultimate beneficial owners
Company Information
Companies operating in Singapore must provide their:
- Registered business address
- Proof of establishment or incorporation
- Place of incorporation or registration
Politically Exposed Persons (PEPs)
When dealing with PEPs, financial institutions are required to take additional steps to ensure compliance, including:
- Obtaining approval from senior management
- Conducting enhanced monitoring of transactions
Recordkeeping and Reporting
Financial institutions must:
- Maintain records on customers and transactions for a minimum period of five years
- Information includes wire transfers, value transfers, and digital tokens
- Report suspicious activity to the Suspicious Transaction Reporting Office (STRO)
- Three types of reports: Suspicious Transaction Reports, Cash Transaction Reports, and Cash Movement Reports
Penalties for Non-Compliance
Financial institutions found guilty of non-compliance with AML regulations may face penalties, including:
- Fines
- Imprisonment
- License termination
Frequently Asked Questions (FAQs)
Q: What are the main AML regulations in Singapore?
A: The Corruption, Drug Trafficking, and Other Serious Crimes Act 1992, MAS Notice 626, MAS Notice 1014, MAS Notice 824, MAS Notice PSN01, and MAS Notice PSN02.
Q: What is MAS Notice 626?
A: It is a guideline published by the Monetary Authority of Singapore (MAS) which applies to banks and targets Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) activities.
Q: What are the KYC requirements from the MAS?
A: Financial institutions in Singapore must conduct Know-Your-Customer checks when onboarding customers. The requirements include verifying full name, unique identification number, residential address, date of birth, and nationality.
Q: Is Singapore a high-risk country for AML?
A: No, according to the latest FATF Mutual Evaluation Report, Singapore fully complies with 20 Recommendations and mostly complies with 17 recommendations (out of 40 total).