Singapore legislation
Regulation 6
Regulation 6
Customer due diligence measures for purchaser that is entity or legal arrangement
Subregulation 1
Subject to paragraph (3) and rule 9, the following customer due diligence measures must be performed by a licensed housing developer at the relevant time specified in rule 4(1), in relation to every purchaser that is an entity or a legal arrangement:
determine whether the purchaser has any beneficial owner;
take reasonable measures to ascertain the identity and obtain the identifying information of each beneficial owner of the purchaser, if any;
understand the nature of the purchaser’s business;
understand the ownership and control structure of the purchaser.
Subregulation 2
Under paragraph (1)(a) and (b), the licensed housing developer must do as follows: (a)if the purchaser is an entity —
ascertain the identity and obtain the identifying information of each individual (if any) who ultimately has a controlling ownership interest in the purchaser, according to the law and instrument under which the purchaser is constituted;
if it is doubtful whether all or any of the individuals who ultimately have a controlling interest in the purchaser are its beneficial owners, or where no individual exerts control through ownership interests, ascertain the identity and obtain the identifying information of each individual (if any) exercising control of the purchaser through other means; or
if no individual is identified under sub‑paragraphs (i) and (ii), ascertain the identity and obtain the identifying information of every individual holding a senior management office in the purchaser;
if the purchaser is a legal arrangement —
in any case where the legal arrangement is a trust, ascertain the identity and obtain the identifying information of —
the settlor;
each trustee;
the protector, if any;
each beneficiary; and
any other individual exercising ultimate effective control over the trust; or
in any case where the legal arrangement is not a trust, ascertain the identity and obtain the identifying information of each person holding a position equivalent or similar to any position in sub‑paragraph (i).
Subregulation 3
However, a licensed housing developer need not ascertain the identity and obtain the identifying information of each beneficial owner of the purchaser where the purchaser is —
an entity that is listed on the Singapore Exchange and is subject to disclosure requirements by the Singapore Exchange;
a financial institution that is listed in Appendix 1 of the direction known as MAS Notice 626 issued by the Monetary Authority of Singapore; or
a financial institution incorporated or established outside Singapore that is subject to and supervised for compliance with such requirements for the prevention of money laundering, proliferation financing and terrorism financing, as are consistent with standards set by the FATF.
Subregulation 4
Where a licensed housing developer determines that the purchaser is an entity specified in paragraph (3)(a), (b) or (c), the licensed housing developer must record the basis for the determination.
Subregulation 4A
A licensed housing developer must take reasonable measures to determine whether each beneficial owner (if any) of the purchaser is a politically-exposed person, or a family member or close associate of a politically-exposed person.
Subregulation 5
In paragraph (3) —
Definition
“financial institution” has the meaning given by section 27A(6) of the Monetary Authority of Singapore Act 1970 read with section 27A(7) of that Act;
Definition
“Monetary Authority of Singapore” means the Monetary Authority of Singapore established by section 3 of the Monetary Authority of Singapore Act 1970.