Passport Numbers of Directors, Shareholders, and Ultimate Beneficial Owners Required for Financial Institutions in Singapore
In a move to strengthen anti-money laundering (AML) regulations, financial institutions in Singapore are now required to collect passport numbers of directors, shareholders, and ultimate beneficial owners of companies.
Enhanced Customer Due Diligence
The new requirement is part of the Monetary Authority of Singapore’s (MAS) efforts to combat money laundering and terrorist financing. Financial institutions must ensure that they have accurate and up-to-date information about their customers, including their passport numbers, in order to conduct proper customer due diligence (CDD).
Provisions for Politically Exposed Persons
Financial institutions are also required to take special measures when dealing with Politically Exposed Persons (PEPs) and their family members or close associates. This includes:
- Obtaining approval from senior management before establishing or continuing business relations with a PEP
- Identifying the source of wealth and funds/income
- Conducting enhanced monitoring of transactions
Recordkeeping and Reporting
Financial institutions are also required to:
- Keep records of customer information and transactions for at least five years from the end of the business relationship
- Report any suspicious activity to the Suspicious Transaction Reporting Office (STRO) within 15 business days
Penalties for Non-Compliance
Failure to comply with AML regulations can result in severe penalties, including:
- Fines and imprisonment
- Official warnings
- Reprimands
- Prohibition orders
- Removal of management from their positions
- License termination
Frequently Asked Questions
Q: What are the main AML regulations in Singapore?
A: The Corruption, Drug Trafficking, and Other Serious Crimes Act 1992 (CDSA), 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 that 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 customer due diligence, including verifying the identity of individual customers through their passport numbers.
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.