Singapore legislation
Regulation 10
Regulation 10
Performance of customer due diligence measures by third parties
Subregulation 1
Subject to paragraph (2), an accounting entity or individual practitioner of the accounting entity may rely on a third party to perform any CDD measures (including simplified CDD measures and enhanced CDD measures) which the accounting entity or individual practitioner is required to perform if the following requirements are met:
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.
Subregulation 2
An accounting entity or individual practitioner must not rely on a third party to conduct ongoing monitoring of a business relationship with a client under rule 11, except where the third party is part of the accounting entity’s group or network.
Subregulation 3
Where an accounting entity or individual practitioner relies on a third party to perform the CDD measures, the accounting entity or individual practitioner must —
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.
Subregulation 4
To avoid doubt, despite the reliance upon a third party, the accounting entity or individual practitioner remains responsible for its, his or her obligations under these Rules.