Accountants (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Rules 2023

the reference to “prominent public function” in paragraph (a)(i) and (ii) of that definition —

includes the role held by a head of state, head of government, government minister, senior civil or public servant, senior judicial or military official, senior executive of a state‑owned corporation, senior political party official, or member of the legislature; but(ii)does not include the role held by middle‑ranking or more junior officials; and

the reference to “prominent public function” in paragraph (a)(iii) of that definition —

includes the role held by a director, deputy director, member of the board, or member of the senior management, of the international organisation; but(ii)does not include the role held by middle‑ranking or more junior officials.

A is a partner of B;

A is an employee or employer of B;

A is an officer of any corporation of which B is an officer;

A and B are both employees of the same individual;

A is accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of B;

B is accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of A; or

A is a person with whom B has an agreement or arrangement, whether oral or in writing and whether express or implied, to act together to engage the services of an accounting entity.

an accounting entity which by way of business, prepares to carry out or carries out transactions for a client concerning any of the following activities:

buying and selling of real estate;

managing of client money, securities or other assets;

management of bank, savings or securities accounts;

organisation of contributions for the creation, operation or management of companies; (v)creation, operation or management of legal persons or arrangements, and buying and selling of business entities; and

an individual practitioner of the accounting entity which prepares to carry out or carries out any such transactions on behalf of the accounting entity.

establishes a business relationship with a client;

suspects that there is money laundering, the financing of terrorism or proliferation financing by a client; or

doubts the veracity or adequacy of documents, data or information previously obtained for the purposes of identification or verification of a client.

any CDD measures previously performed;

when the CDD measures were last performed; and

the adequacy of documents, data or information obtained from the performance of the previous CDD measures.

determine the extent of CDD measures on a risk‑sensitive basis, depending on the type of client, business relationship, product or transaction; and

be able to demonstrate to the Registrar that the extent of the CDD measures is appropriate in view of the risks of money laundering, the financing of terrorism and proliferation financing.

full name, including any alias;

the identity card number, birth certificate number or passport number (in the case of an individual), or the incorporation number or registration number (in the case of a client that is a body corporate or unincorporate);

existing residential address or address of its place of business or registered office (as the case may be) and telephone number;

the date of birth, incorporation or registration, as the case may be;

the nationality or place of incorporation or registration, as the case may be.

verify the identity of the client and the client’s agent (if any) as well as the persons referred to in paragraph (3), (4) or (5), using reliable and independent sources;

verify the authority of a client’s agent (if any) to act on behalf of the client; and

retain a copy of all documents used in verifying the matters referred to in sub‑paragraphs (a) and (b).

identifying the individuals (whether acting alone or together) who ultimately own all the assets or undertakings of the body corporate;

to the extent that there is doubt under sub‑paragraph (a) as to whether the individuals who ultimately own all the assets or undertakings of the body corporate are the beneficial owners or where no individuals ultimately own all the assets or undertakings of the body corporate, identifying the individuals (if any) who have ultimate control or ultimate effective control over the body corporate; and

where no individuals are identified under sub‑paragraph (a) or (b), identifying the individuals having executive authority in the body corporate, or in equivalent or similar positions.

in the case of an express trust — the settlor, the trustees, the protector (if any), the beneficiaries or class of beneficiaries as well as any individual having ultimate ownership of the assets or undertakings of the trust, or exercising ultimate control or ultimate effective control over the trust (including through a chain of control or ownership or both);

in the case of any other type of legal arrangement — the persons in equivalent or similar positions as those described in sub‑paragraph (a).

an entity listed on the Singapore Exchange;

an entity listed on a stock exchange outside Singapore which is regulated by an authority of a country or territory other than Singapore regulating the provision of financial services;

a Singapore financial institution;

a financial institution incorporated or established outside Singapore that is subject to and supervised for compliance with requirements for the prevention of money laundering, the financing of terrorism and proliferation financing consistent with the standards set by the FATF; or

an investment vehicle, the managers of which are —

Singapore financial institutions; or

financial institutions incorporated or established outside Singapore, and subject to and supervised for compliance with requirements for the prevention of money laundering, the financing of terrorism and proliferation financing consistent with the standards set by the FATF,unless the accounting entity or individual practitioner has doubts about the veracity of the information obtained by the accounting entity or individual practitioner in carrying out CDD measures under these Rules or suspects that the client is carrying out or facilitating money laundering, the financing of terrorism or proliferation financing.

the deferral of completion of the verification is essential in order not to interrupt the normal conduct of business operations; and

the risks of money laundering, the financing of terrorism and proliferation financing can be effectively managed by the accounting entity or an individual practitioner of the accounting entity.

the accounting entity must adopt internal risk management policies and procedures concerning the conditions under which the accounting entity may establish such a business relationship before verification; and

the accounting entity or individual practitioner must complete the verification as soon as is reasonably practicable.

the accounting entity or individual practitioner is satisfied that the third party —

is subject to and supervised for compliance with requirements for —

the prevention of money laundering, the financing of terrorism and proliferation financing; and

the recording and reporting of transactions suspected of involving money laundering, the financing of terrorism or proliferation financing,consistent with the standards set by the FATF; and

has adequate measures in place to comply with those requirements;

the accounting entity or individual practitioner takes appropriate steps to identify, assess and understand the risks of money laundering, the financing of terrorism and proliferation financing in the countries or territories that the third party operates in, if applicable;

the third party is not one which the accounting entity or individual practitioner has been specifically precluded by the Registrar from relying upon;

the third party is able and willing to provide, without delay and upon the request of the accounting entity or individual practitioner, any document, data or information obtained by the third party with respect to the CDD measures performed by the third party in relation to the client of the accounting entity or individual practitioner.

document the basis for its, his or her satisfaction that the requirements in paragraph (1)(a) and (b) have been met; and

obtain from the third party, immediately after the third party has obtained the documents, data or information from performing the CDD measures, those documents, data or information.

determine the extent of ongoing monitoring of a business relationship on a risk‑sensitive basis, depending on the type of client, business relationship, services or transaction; and

be able to demonstrate to the Registrar that the extent of the ongoing monitoring is appropriate in view of the risks of money laundering, the financing of terrorism and proliferation financing.

identify the client, the client’s agent (if any) and each beneficial owner in relation to the client; and

verify the identities of the client, the client’s agent (if any) and the beneficial owner.

if the client is from or in a country or territory which the FATF has called for countermeasures (including enhanced CDD measures) to be performed, as may be notified to accounting entities and individual practitioners generally by the Registrar;

if the client is from or in a country or territory known to have inadequate measures for the prevention of money laundering, the financing of terrorism or proliferation financing, as determined by the accounting entity or individual practitioner, or notified to accounting entities and individual practitioners generally by the Registrar;

where the accounting entity or individual practitioner suspects that money laundering, the financing of terrorism or proliferation financing is being committed or facilitated.

the details of its, his or her risk assessment, including when the risk assessment was done; and

the nature of the simplified CDD measures.

which proposes to have a business relationship with a politically‑exposed person must perform enhanced CDD measures before the accounting entity establishes the business relationship; and

which has established a business relationship with a politically‑exposed person must perform enhanced CDD measures and enhanced ongoing monitoring over the course of the business relationship.

an individual who is or has been entrusted with any prominent public function in Singapore, or an immediate family member or close associate of that individual;

an individual who is or has been entrusted with any prominent public function by an international organisation, or an immediate family member or close associate of that individual;

an individual who has stepped down from his or her prominent public function, taking into consideration the level of influence the person may continue to exercise after stepping down from such prominent public function, or an immediate family member or close associate of that individual.

in respect of all complex or unusually large transactions, or unusual patterns of transactions that have no apparent or visible economic or lawful purpose;

when the accounting entity proposes to have, or has established, a business relationship with a client from or in a country or territory outside Singapore known to have inadequate measures for the prevention of money laundering, the financing of terrorism or proliferation financing (as determined by the accounting entity or individual practitioner, or as notified to accounting entities and individual practitioners generally by the Registrar);

in respect of any other categories of clients or any other transactions which the accounting entity or individual practitioner considers may present a high risk of money laundering, the financing of terrorism or proliferation financing; and

in respect of a business relationship with a client, where the client is from or in a country or territory for which the FATF has called for countermeasures (including enhanced CDD measures) to be performed, as may be notified to accounting entities and individual practitioners generally by the Registrar.

ensuring that the client’s identity is established by additional documents, data or information;

implementing supplementary measures to verify or certify the documents supplied, or requiring confirmatory certification by a Singapore financial institution;

ensuring that the first payment is carried out through an account opened in the client’s name with a Singapore financial institution.

a copy of the information and evidence of —

the client’s identity;

the identity of the client’s agent, if any; and

the identity of each beneficial owner in relation to the client, if any,referred to in or obtained pursuant to rules 5 to 14; and

the supporting records (consisting of the original documents or copies of the original documents) in respect of a business relationship which is the subject of any CDD measures (including simplified CDD measures or enhanced CDD measures) or ongoing monitoring (including enhanced ongoing monitoring).

CDD measures (including simplified CDD measures and enhanced CDD measures) and ongoing monitoring (including enhanced ongoing monitoring);

reporting;

record keeping;

risk assessment and management;

audit of the internal policies, procedures and controls;

the monitoring and management of compliance with, and the internal communication of, such internal policies, procedures and controls;

hiring and training of employees;

group policy, if the accounting entity has one or more subsidiaries or branches.

internal policies, procedures and controls which provide for the identification and scrutiny of —

complex or unusually large transactions;

unusual patterns of transactions which have no apparent economic or visible lawful purpose; and

any other activity which the accounting entity or an individual practitioner of the accounting entity regards as particularly likely by its nature to be related to money laundering, the financing of terrorism or proliferation financing;

internal policies, procedures and controls which specify the taking of additional measures, where appropriate, to prevent —

the development of new services and new business practices, including new delivery mechanisms, for money laundering, the financing of terrorism and proliferation financing; and

the use of new or developing technologies, for both new and pre‑existing services, for money laundering, the financing of terrorism and proliferation financing; and

internal policies, procedures and controls to determine whether any client, beneficial owner in relation to a client, or an agent of a client is a politically‑exposed person.

must —

assess the risks of money laundering, the financing of terrorism or proliferation financing that may arise in relation to —

the development of new services and new business practices, including new delivery mechanisms; and

the use of new or developing technologies for both new and pre‑existing services,before the launch or use of the services, business practices and technologies; and

must take appropriate measures to manage and mitigate the risks.

new services and new business practices, including new delivery mechanisms; and

new or developing technologies for both new and pre‑existing services,that favour anonymity.

policies and procedures for the sharing of information within the group for the purposes of customer due diligence and risk management of money laundering, the financing of terrorism and proliferation financing; and

adequate safeguards on the confidentiality and use of the information mentioned in sub‑paragraph (a) that is shared.

an accounting entity has a branch or subsidiary in a country or territory outside Singapore; and

that country or territory is known to have inadequate measures in relation to the detection and prevention of money laundering, the financing of terrorism or proliferation financing —

as determined by the accounting entity;

as notified to the accounting entity by the Registrar or any relevant authority in that country or territory; or

as identified by the FATF,the accounting entity must, to the extent that the laws of that country or territory permit, ensure that the group‑wide programmes mentioned in paragraph (1) are strictly observed by the management of that branch or subsidiary.

an accounting entity has a branch or subsidiary in a country or territory outside Singapore; and

that country or territory has laws where the minimum requirements in relation to the detection and prevention of money laundering, the financing of terrorism or proliferation financing are less stringent than those in Singapore,the accounting entity must ensure that the branch or subsidiary implements, to the extent that the laws of that country or territory permit, the requirements for the prevention of money laundering, the financing of terrorism and proliferation financing that are applicable in Singapore.

independent; and

able to regularly assess the effectiveness of the internal policies, procedures and controls of the accounting entity, and the compliance by the accounting entity and its individual practitioners with the internal policies, procedures and controls.

develop compliance management arrangements to continually review and update the internal policies, procedures and controls for the prevention of money laundering, the financing of terrorism and proliferation financing; and

appoint an employee or officer in a management position as the accounting entity’s compliance officer in relation to the prevention of money laundering, the financing of terrorism and proliferation financing.

implement screening procedures for the hiring of fit and proper individuals as employees; and

ensure that the employees of the accounting entity, whether in Singapore or elsewhere, are trained on —

the laws for the prevention of money laundering, the financing of terrorism and proliferation financing, including —

these Rules;

the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992;

the Terrorism (Suppression of Financing) Act 2002; and

any other legislation concerning the prevention of money laundering, the financing of terrorism or proliferation financing as may be specified by the Authority;

prevailing methods of, and trends in, money laundering, the financing of terrorism and proliferation financing; and

the accounting entity’s internal policies, procedures and controls for the prevention of money laundering, the financing of terrorism and proliferation financing, including the roles and responsibilities of employees and officers of the accounting entity in relation to such internal policies, procedures and controls.

in the case of paragraph (1)(a) — the date the accounting entity implemented the screening procedures; and

in the case of paragraph (1)(b) — the date the training of the respective employee ended.