Subsidiary Legislation · As enacted
Accountants (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Rules 2023
Feedback & supportOfficial textFrom Singapore Statutes Online, unchanged
reg 1Citation and commencement
These Rules are the Accountants (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Rules 2023 and come into operation on 1 July 2023.
Subregulation 1
In these Rules —
“accounting entity” has the meaning given by section 2(1) of the Act;
“agent”, in relation to a client, means a person appointed by the client to act on the client’s behalf in any business relationship;
“beneficial owner” means —
an individual who ultimately owns all of the assets or undertakings of the client (whether or not the client is a body corporate);
an individual who has ultimate control or ultimate effective control over, or has executive authority in, the client; or
an individual on whose behalf the client has employed or engaged the services of an accounting entity;
“business relationship”, in relation to a relationship between a client and an accounting entity, means a business, professional or commercial relationship between the client and the accounting entity in carrying out any activity under rule 3, including an occasional transaction with or for the client;
“client” means a client of an accounting entity;
“connected party” —
in relation to a client which is a legal person (other than a partnership, limited liability partnership or limited partnership), means a director or an individual having executive authority in the legal person;
in relation to a client which is a legal person that is a partnership (other than a limited liability partnership or limited partnership), means a partner of the partnership;
in relation to a client which is a limited liability partnership or a limited partnership, means a partner or manager of the limited liability partnership or limited partnership; and
in relation to a client which is a legal arrangement, means any individual having executive authority in the legal arrangement,and for the purposes of this definition, a partnership includes one that is registered or formed outside Singapore;
“customer due diligence measures” or “CDD measures” means —
identifying the client and the client’s agent (if any), and verifying their identities on the basis of documents, data or information obtained from a reliable and independent source;
where there is a beneficial owner who is not the client, identifying the beneficial owner and taking reasonable measures, on a risk‑sensitive basis, to verify the beneficial owner’s identity so that the accounting entity or individual practitioner of the accounting entity is satisfied that the accounting entity or individual practitioner knows who the beneficial owner is (including, in the case where the client is a legal person or legal arrangement, measures to understand the ownership and control structure of the legal person or legal arrangement); and
understanding and obtaining information on the purpose and intended nature of the business relationship;
“enhanced CDD measures” means CDD measures performed to a higher degree consistent with the higher risks of money laundering, the financing of terrorism or proliferation financing and includes, where applicable, the following measures:
inquiring into the background and purpose of any transaction which the accounting entity is employed, appointed or engaged to carry out;
obtaining approval from the senior management of the accounting entity for establishing a proposed business relationship;
taking reasonable measures to establish the source of wealth and source of funds which are involved in a proposed business relationship; (d)keeping a record in writing of the findings of the accounting entity or an individual practitioner of the accounting entity in respect of the CDD measures and the measures in paragraphs (a), (b) and (c);
“enhanced ongoing monitoring” means ongoing monitoring that is enhanced in terms of frequency over the course of the business relationship concerned;
“FATF” means the intergovernmental body known as the Financial Action Task Force;
“foreign company” means a company incorporated outside Singapore;
“group” means an accounting entity, and its subsidiaries and branches;
“immediate family member” means a spouse, a child, an adopted child, a step‑child, a sibling, an adopted sibling, a step‑sibling, a parent or a step‑parent;
“individual practitioner” has the meaning given by section 2(1) of the Act;
“international organisation” means an entity —
established by formal political agreements between member countries or territories that have the status of international treaties;
which existence is recognised by law in member countries or territories; and
which is not treated as a resident institutional unit of the country or territory in which it is located;
“legal arrangement” means an express trust or other similar legal arrangement;
“legal person” means an entity other than an individual that can establish a permanent business relationship with an accounting entity or otherwise own property;
“limited partnership” means a limited partnership registered under the Limited Partnerships Act 2008;
“network” has the meaning given by the Glossary in the Fourth Schedule to the Accountants (Prescribed Standards and Code of Professional Conduct and Ethics) Order 2023 (G.N. No. S 327/2023);
“ongoing monitoring” means —
scrutiny by an accounting entity or individual practitioner of the accounting entity of transactions undertaken throughout the course of a business relationship with a client (including, where necessary, the source of the client’s funds) to ensure that the transactions are consistent with the knowledge of the accounting entity or individual practitioner of the client and the client’s business and risk profile; and
keeping the documents, data or information obtained in the course of performing CDD measures (including simplified and enhanced CDD measures) up to date;
“politically‑exposed person” —
means —
an individual who is or has been entrusted with any prominent public function in Singapore;
an individual who is or has been entrusted with any prominent public function in a country or territory outside Singapore; or
an individual who is or has been entrusted with any prominent public function by an international organisation; and
includes —
an individual who is an immediate family member of an individual mentioned in paragraph (a)(i), (ii) or (iii); or
an individual who is a close associate of an individual mentioned in paragraph (a)(i), (ii) or (iii);
“simplified CDD measures” means the measures referred to in rule 12(1);
“Singapore financial institution” means a financial institution as defined in section 2 of the Financial Services and Markets Act 2022.
Subregulation 2
For the purposes of the definition of “politically‑exposed person” in paragraph (1) —
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.
Subregulation 3
For the purposes of paragraph (b)(ii) of the definition of “politically‑exposed person” in paragraph (1), an individual (A) is a close associate of another individual (B) if —
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.
reg 3Purpose of Rules and application
The purpose of these Rules is to prescribe the requirements relating to the detection and prevention of money laundering, the financing of terrorism or proliferation financing by accounting entities and individual practitioners of accounting entities, where accounting entities and individual practitioners are subject to a review of their compliance with such requirements under Part 5A of the Act.
These Rules apply to —
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.
Subregulation 1
The purpose of these Rules is to prescribe the requirements relating to the detection and prevention of money laundering, the financing of terrorism or proliferation financing by accounting entities and individual practitioners of accounting entities, where accounting entities and individual practitioners are subject to a review of their compliance with such requirements under Part 5A of the Act.
Subregulation 2
These Rules apply to —
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.
reg 4General duties
An accounting entity must conduct its business, in such a manner as to guard against the facilitation of money laundering, the financing of terrorism and proliferation financing.
An accounting entity and an individual practitioner of the accounting entity must exercise due diligence in such a manner as to guard against the facilitation of money laundering, the financing of terrorism and proliferation financing.
An accounting entity and its individual practitioners must assist and cooperate with the relevant law enforcement authorities in preventing money laundering, the financing of terrorism and proliferation financing.
Subregulation 1
An accounting entity must conduct its business, in such a manner as to guard against the facilitation of money laundering, the financing of terrorism and proliferation financing.
Subregulation 2
An accounting entity and an individual practitioner of the accounting entity must exercise due diligence in such a manner as to guard against the facilitation of money laundering, the financing of terrorism and proliferation financing.
Subregulation 3
An accounting entity and its individual practitioners must assist and cooperate with the relevant law enforcement authorities in preventing money laundering, the financing of terrorism and proliferation financing.
reg 5Performance of customer due diligence measures
Subject to rules 6 to 10, 12, 13 and 14, an accounting entity or individual practitioner of the accounting entity must perform CDD measures when 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.
The accounting entity or individual practitioner must also perform CDD measures at other appropriate times in relation to an existing client on a risk‑sensitive basis, taking into account —
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.
The accounting entity or individual practitioner must —
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.
Subregulation 1
Subject to rules 6 to 10, 12, 13 and 14, an accounting entity or individual practitioner of the accounting entity must perform CDD measures when 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.
Subregulation 2
The accounting entity or individual practitioner must also perform CDD measures at other appropriate times in relation to an existing client on a risk‑sensitive basis, taking into account —
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.
Subregulation 3
The accounting entity or individual practitioner must —
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.
reg 6Identification and verification of identity of clients and agents
For the purposes of rule 5(1)(a) but subject to rule 12, an accounting entity or individual practitioner of the accounting entity must establish the identity of each client and each of the client’s agents.
For the purposes of paragraph (1), the accounting entity or individual practitioner must obtain and record at least the following information of the client and the client’s agent, if any:
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.
Where the client is a company or foreign company, the accounting entity or individual practitioner must also establish and record the identities of all the directors of the company or foreign company.
Where the client is a sole proprietor, partnership, limited liability partnership or limited partnership, the accounting entity or individual practitioner must also establish and record the identities of the sole proprietor and partners.
Where the client is a body corporate or unincorporate other than a company, limited liability partnership or limited partnership, the accounting entity or individual practitioner must also establish and record the identities of all the persons having executive authority in that body.
Subject to rule 8, the accounting entity or individual practitioner must, before the accounting entity establishes a business relationship with the client —
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).
Subregulation 1
For the purposes of rule 5(1)(a) but subject to rule 12, an accounting entity or individual practitioner of the accounting entity must establish the identity of each client and each of the client’s agents.
Subregulation 2
For the purposes of paragraph (1), the accounting entity or individual practitioner must obtain and record at least the following information of the client and the client’s agent, if any:
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.
Subregulation 3
Where the client is a company or foreign company, the accounting entity or individual practitioner must also establish and record the identities of all the directors of the company or foreign company.
Subregulation 4
Where the client is a sole proprietor, partnership, limited liability partnership or limited partnership, the accounting entity or individual practitioner must also establish and record the identities of the sole proprietor and partners.
Subregulation 5
Where the client is a body corporate or unincorporate other than a company, limited liability partnership or limited partnership, the accounting entity or individual practitioner must also establish and record the identities of all the persons having executive authority in that body.
Subregulation 6
Subject to rule 8, the accounting entity or individual practitioner must, before the accounting entity establishes a business relationship with the client —
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).