5 May, 2015
- be fit and proper persons satisfying the experience and qualification requirements;
- comply with the legal obligations contained in the new Part VIA of the Act; and
- comply with the applicable terms and conditions imposed by the First and Second Schedule of the Regulations.
- Identifying and assessing its money laundering and financing of terrorism risks in relation to its customers, the countries or territories where its customers are from, and the services it provides, and ensuring that controls (e.g. customer due diligence (“CDD”) and on-going monitoring) are commensurate with the level of risk. Enhanced controls should be established where the risks are higher, while reduced controls may be used where lower risks are present.
- Conducting screening of its customer, as soon as practicable after establishing a business relationship, against relevant money laundering and financing of terrorism sources, as well as lists and information provided by ACRA and any relevant authorities in Singapore to determine the level of risk in relation to the customer. Details of the risk assessment have to be duly documented.
- Performing CDD by identifying and verifying the identity of customers, agents and beneficial owners and obtaining information on the purpose and the intended nature of the business relationship. CDD measures must be performed when the registered FA (i) establishes a business relationship; (ii) suspects that there is money laundering or the financing of terrorism; (iii) doubts the veracity or adequacy of identification or verification information; or (iv) at other appropriate times based on its assessment of materiality and risk.
- Where a registered FA is unable to apply CDD measures or suspects or has reason to believe that any transaction may be connected to money laundering or financing of terrorism, the registered FA must cease dealing with the customer and consider if a disclosure or suspicious transaction report should be filed.
- Performing on-going monitoring of business relationships with existing and new customers by (i) scrutinising transactions undertaken through the course of the relationship (including, where necessary, the source of funds) to ensure consistency of transactions with the customer’s business and risk profile; (ii) keeping CDD information up-to-date; (iii) reviewing every business relationship based on risk assessment; and (iv) taking appropriate after-action review.
- Keeping records sufficiently detailed such that a satisfactory audit trail may be made from them, and which may establish a financial profile of any customer. Records should be kept for at least 5 years from the date on which the business relationship with the customer ends.
- Assessing and documenting regularly, the effectiveness of internal policies, procedures and controls. The information documented should be provided to ACRA when required to do so.
- Implementing and maintaining an independent audit function to regularly assess the effectiveness of the internal policies, procedures and controls.
- Developing compliance management arrangements, and appointing an employee or officer in a management position as the compliance officer in relation to AML/CFT.
- Implementing and documenting screening procedures for the hiring of fit and proper persons as employees, while ensuring proper training of the employees on matters relating to AML/CFT.
- Assisting and cooperating with the relevant law enforcement authorities in preventing money laundering and the financing of terrorism by furnishing such information as and when required.
For further information, please contact: