Clause 10

A developer must not, in connection with any building project developed by the developer, open or maintain any account for, or hold and receive moneys from —

an anonymous source; or

a purchaser with an obviously fictitious name.(2) A developer must perform such customer due diligence measures as may be prescribed at such times as may be prescribed.(3) A developer must perform —

the prescribed measures relating to targeted financial sanctions against terrorism; and

any prescribed additional measures which are necessary or expedient to give effect to any relevant FATF Recommendation.(4) Where a developer knows or has reasonable grounds to suspect any matter mentioned in section 39(1) of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act, the developer must, in accordance with section 39 of that Act, disclose the matter to a Suspicious Transaction Reporting Officer under that Act by way of a suspicious transaction report.(5) A developer that contravenes subsection (1), (2), (3) or (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000.Record keeping5B.—

A developer must keep, for such period as may be prescribed, all documents and information (including any analysis performed) relating to a person that the developer obtains as a result of performing the customer due diligence measures required by section 5A(2).(2) For the purposes of subsection (1), different periods may be prescribed for different documents and information.(3) A developer must keep the documents and information required to be kept under subsection (1) in such form as may be prescribed.(4) A developer must make the documents and information required to be kept under subsection (1) available upon request to the Controller or an inspector and such other authorities as may be prescribed.(5) A developer that contravenes subsection (1), (3) or (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000.Programmes and measures to prevent money laundering and terrorism financing5C.—

Without limiting sections 5A and 5B, a developer must, in relation to its business of carrying on or undertaking a building project in Singapore, implement adequate programmes and measures to prevent money laundering and terrorism financing.(2) A developer must, in particular —

take appropriate steps to identify, assess and understand the money laundering and terrorism financing risks in relation to —

its purchasers;

the countries or jurisdictions which its purchasers are from or in;

the countries or jurisdictions in which the developer has operations; and

its services, transactions and delivery channels;

for the purpose of paragraph (a) —

document its risk assessments;

consider all relevant risk factors before determining the overall level of risk and the appropriate type and extent of mitigation to be applied;

keep its risk assessments up to date; and

have appropriate mechanisms to provide its risk assessments to the Controller;

develop and implement internal policies, procedures and controls, which must be approved by its senior management, to manage and effectively mitigate the money laundering and terrorism financing risks identified by it or notified to it by the Controller, including —

making appropriate compliance management arrangements, including the appointment of a compliance officer at the management level; and

applying adequate screening procedures when hiring employees;

have an ongoing programme to train employees on the internal policies, procedures and controls mentioned in paragraph (c);

have an independent audit function to test the internal policies, procedures and controls mentioned in paragraph (c); and

monitor the implementation of the internal policies, procedures and controls mentioned in paragraph (c), and enhance them if necessary.(3) The type and extent of the measures to be taken under subsections (1) and (2) must be appropriate having regard to the risk of money laundering and terrorism financing and the size of the developer’s business.(4) Where a developer is a company incorporated in Singapore and has a branch or subsidiary, whether in Singapore or elsewhere, the developer must develop and implement a group‑level programme to prevent money laundering and terrorism financing, which programme —

must be applicable to the developer’s branches and subsidiaries, whether in Singapore or elsewhere; (b)must include the measures specified under subsection (2);

must be appropriate to the business of the developer’s branches and subsidiaries; (d)must be implemented effectively at the level of the developer’s branches and subsidiaries; (e)must include policies and procedures for providing and sharing information required for the purposes of customer due diligence measures prescribed for the purposes of section 5A(2) and generally for the management of risks relating to money laundering and terrorism financing; and

must include adequate safeguards on the confidentiality and use of information exchanged between the developer and its branches and subsidiaries.(5) Where a developer mentioned in subsection (4) has a branch or subsidiary in a country or territory outside Singapore that has laws for the prevention of money laundering or the financing of terrorism that differ from those in Singapore —

the developer must require the management of that branch or subsidiary to apply the more stringent set of laws, to the extent that the law of the host country or territory permits; and

where that branch or subsidiary is unable to fully apply the more stringent set of laws, the developer must report this to the Controller and must, in lieu of paragraph (a), comply with such directions as may be given by the Controller.(6) A developer that contravenes subsection (1), (2), (4) or (5) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000.Persons disqualified from being substantial shareholder of developer5D.—

A person —

who has been convicted (whether before, on or after the date of commencement of section 10 of the Developers (Anti‑Money Laundering and Terrorism Financing) Act 2018) of any money laundering or terrorism financing offence; or (b)if a company, partnership, society or limited liability partnership, which has an individual mentioned in paragraph (a) holding a responsible position in that company, partnership, society or limited liability partnership, as the case may be,must not be or become a substantial shareholder of a developer, whether by increasing the person’s shareholding in the developer or otherwise.(2) A person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000.Persons disqualified from being in responsible position5E.—

Subject to subsection (2), each of the following persons must not hold or continue to hold a responsible position in a developer:

a person who has been convicted (whether before, on or after the date of commencement of section 10 of the Developers (Anti‑Money Laundering and Terrorism Financing) Act 2018) of any money laundering or terrorism financing offence;

a person who is convicted of an offence (whether in Singapore or elsewhere and whether before, on or after the date of commencement of section 10 of the Developers (Anti‑Money Laundering and Terrorism Financing) Act 2018) involving fraud or dishonesty;

a person who is an undischarged bankrupt (whether in Singapore or elsewhere) or who suspends payment to or compounds with the person’s creditors.(2) The disqualification in subsection (1)(b) ceases for a person at the end of 5 years beginning from —

the date of the person’s conviction; or (b)if the person is imprisoned, the date on which the person convicted is released from custody,whichever date is later.(3) In this section, “responsible position”, for a developer, means —

in the case of a developer that is a company — a director, manager or secretary or a person in a position analogous to that of a director, manager or secretary; (b)in the case of a developer that is a society — a president, secretary or treasurer or a person in a position analogous to that of a president, secretary or treasurer;

in the case of a developer that is a partnership — a partner; (d)in the case of a developer that is a limited liability partnership — a partner or manager or a person in a position analogous to that of a manager; or

in the case of a developer that is a group of persons — any person in that group.(4) A person who contravenes subsection (1)(a) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000.(5) A person who contravenes subsection (1)(b) or (c) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 3 years or to both.(6) To avoid doubt, this section applies without limiting any other restriction or prohibition in any other written law relating to companies, co‑operative societies, societies, limited liability partnerships or partnerships.”.