Singapore legislation
Regulation 12
Regulation 12
Simplified customer due diligence measures
Subregulation 1
Despite rules 6 and 7, if an accounting entity or individual practitioner of the accounting entity assesses that the risks of money laundering, the financing of terrorism and proliferation financing by a client are low, the accounting entity or individual practitioner may, for the purposes of rule 5(1)(a), adopt any simplified CDD measures that it, he or she considers adequate as would effectively —
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.
Subregulation 2
The assessment that the risks of money laundering, the financing of terrorism and proliferation financing are low must be supported by an adequate analysis of risks by the accounting entity or individual practitioner.
Subregulation 3
The simplified CDD measures must be commensurate with the level of risk of money laundering, the financing of terrorism and proliferation financing, based on the risk factors identified by the accounting entity or individual practitioner.
Subregulation 4
An accounting entity or individual practitioner must not perform simplified CDD measures in any of the following circumstances:
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.
Subregulation 5
Subject to paragraphs (3) and (4), an accounting entity or individual practitioner may perform simplified CDD measures in relation to a client that is a Singapore financial institution specified for this purpose by the Registrar on the Authority’s website at www.acra.gov.sg.
Subregulation 6
Where the accounting entity or individual practitioner performs simplified CDD measures in relation to a client, the client’s agents and the beneficial owners of the client, the accounting entity or individual practitioner must document —
the details of its, his or her risk assessment, including when the risk assessment was done; and
the nature of the simplified CDD measures.