MAS Announces New Regulations for Anti-Money Laundering and Countering of Financing of Terrorism
Singapore, January 30, 2019
The Monetary Authority of Singapore (MAS) has introduced new regulations to strengthen anti-money laundering (AML) and countering the financing of terrorism (CFT) measures in the country’s financial sector. The changes aim to enhance the mitigation of risks in the money-changing and remittance businesses.
Background
The new regulations were proposed following a public consultation conducted by MAS from January 16, 2018 to February 12, 2018. The key measures introduced include:
- Prohibiting licensed money-changers and remitters from issuing bearer negotiable instruments
- Imposing restrictions on cash payouts
- Removing the need for prior approval for non-face-to-face business transactions
- Requiring customer due diligence on counterparties in foreign currency transactions
New Regulations
MAS has issued two new notices to implement these changes:
- Notice 3006: Prohibition on Issuance of Bearer Negotiable Instruments and Restriction of Cash Payout
- Licensed money-changers and remitters are prohibited from making payments in bearer negotiable instruments or paying cash exceeding S$20,000 to any person
- Revised Notice 3001: Prevention of Money Laundering and Countering the Financing of Terrorism - Holders of Money-Changer’s Licence and Remittance Licence
- Facilitates non-face-to-face business transactions by removing the need for prior approval
- Requires licensees to develop policies and procedures to address specific risks associated with these transactions
Effective Date
The new regulations will come into effect on July 8, 2019. Licensed money-changers and remitters are required to perform customer due diligence on counterparties in foreign currency transactions valued at S$20,000 or more. This requirement does not apply to financial institutions that meet specific criteria.
Objectives
The changes aim to strengthen AML/CFT measures in Singapore’s financial sector and enhance the country’s reputation as a financial hub. By implementing these new regulations, MAS aims to mitigate risks and maintain the integrity of the financial system.