Singapore Tightens Grip on Passport Numbers of Directors, Shareholders, and Ultimate Beneficial Owners
In an effort to enhance financial transparency and combat money laundering, the Monetary Authority of Singapore (MAS) has introduced stricter guidelines for financial institutions to collect and verify the passport numbers of directors, shareholders, and ultimate beneficial owners.
Key Requirements
To comply with these new regulations, financial institutions must:
- Obtain passport numbers from directors, shareholders, and ultimate beneficial owners at the time of account opening or upon request
- Verify the accuracy of the provided passport numbers through official databases and records
- Comply with new definitions for “digital payment token transfer service” and “digital token transaction”
Consequences of Non-Compliance
Financial institutions that fail to comply with these guidelines may face severe penalties, including:
- Official warnings
- Reprimands
- Prohibition orders
- Removal of management from their positions
- License termination
- Monetary penalties not exceeding S$1,000,000 (approximately $750,000)
What You Need to Know
The MAS has also updated its Notice 2022, which provides further guidance on the requirements for financial institutions. Additionally:
- Financial institutions must engage in ongoing monitoring of suspicious clients and report any unusual or suspicious activity to the Suspicious Transaction Reporting Office (STRO)
- Failure to comply with Anti-Money Laundering (AML) regulations can result in serious consequences, including criminal penalties
FAQs
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: Are there any exceptions to the passport number requirement? A: Yes, simplified due diligence measures may be applied for low-risk customers, but adequate documentation must still be maintained.
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, making it a successful combatant against money laundering.