Singapore Tightens Grip on Anti-Money Laundering, Countering Terrorism Financing

The Monetary Authority of Singapore (MAS) has introduced stricter regulations for financial institutions and licensees to strengthen its anti-money laundering (AML) and countering terrorism financing (CFT) measures.

New Regulations for Financial Institutions and Licensees

To combat money laundering and terrorism financing, the MAS requires banks and licensees to:

• Identify not only customers but also their directors, shareholders, beneficial owners, partners in partnerships or limited liability partnerships
• Take steps to understand ownership and control structures
• Verify the authority granted to individuals appointed by customers to act on their behalf
• Collect specimen signatures for these individuals
• Obtain evidence documenting the appointment of these individuals

Customer Due Diligence (CDD) Measures

Banks and licensees must perform CDD measures for customers who present a higher risk of money laundering and terrorism financing, including:

• Politically Exposed Persons (PEPs)
• Their immediate family members
• Close associates
  • Heads of state
  • Government ministers
  • Senior civil servants
  • Other senior officials

To determine whether a customer is a PEP, licensees can refer to databases compiled by commercial or official authorities.

Requirements for Digital Payment Token Service Providers

Digital payment token service providers, including cryptocurrency dealers and exchanges, must:

• Obtain a payment services license from MAS
• Comply with AML/CFT requirements set out in notices

Key Changes

The new regulations aim to strengthen Singapore’s AML/CFT regime by:

• Identifying directors, shareholders, beneficial owners, partners in partnerships or limited liability partnerships
• Conducting CDD measures for high-risk customers
• Subjecting PEPs and their associates to additional scrutiny
• Requiring digital payment token service providers to obtain a payment services license from MAS
• Ensuring intermediaries are willing and able to provide documents upon request and have adequate measures in place to comply with AML/CFT requirements

Source: Monetary Authority of Singapore (MAS)