Regulation 2

a bank that holds a licence under section 7 or 79 of the Banking Act (Cap. 19); or (ii)a merchant bank that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act;

transacting or investing in Asian Dollar Bonds approved under section 13(1)(v) of the Act; (e)investing in deposits held in Singapore with —

a bank that holds a licence under section 7 or 79 of the Banking Act; or (ii)a merchant bank that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act;

foreign exchange transactions with —

a bank outside Singapore; (ii)a person who is not resident in Singapore and who does not have a permanent establishment in Singapore;

a person who is not resident in Singapore and who carries on any operation in Singapore through a permanent establishment in Singapore, where the transactions are not entered into through that operation;

a bank that holds a licence under section 7 or 79 of the Banking Act; or

a merchant bank that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act;

transactions involving interest rate or currency swaps entered into before 17th February 2006 —

for or with banks outside Singapore or persons who are neither residents of nor permanent establishments in Singapore; or

with banks that hold a licence under section 7 or 79 of the Banking Act, or merchant banks approved under section 28 of the Monetary Authority of Singapore Act (Cap. 186) before that date;

transactions in financial futures contracts or options entered into before 17th February 2006 with a member of any exchange specified in the Schedule; (i)factoring, forfaiting and reinvoicing activities for its approved offices and associated companies (whether within or outside Singapore);

providing credit facilities to its approved offices and associated companies (whether within or outside Singapore);

transactions involving derivatives (including transactions involving interest rate or currency swaps and transactions in financial futures contracts or options) entered into on or after 17th February 2006 —

for or with a bank outside Singapore;

for or with a person who is not resident in Singapore and who does not have a permanent establishment in Singapore;

with its approved offices and associated companies (whether within or outside Singapore); or

with a member of any exchange specified in the Schedule;

transacting or investing in units in any unit trust, where the manager of the unit trust engages wholly in one or more of the activities set out in paragraphs (a) to (h) or (k),where the funds used by the approved Finance and Treasury Centre for carrying out the activities are obtained from —

financial institutions in Singapore; (ii)its paid-up capital; (iii)its accumulated profits derived from qualifying activities and qualifying services approved under section 43G(2) of the Act; (iv)its approved offices and associated companies, but excluding such funds borrowed or raised by the approved offices or associated companies, as the case may be, from sources other than —

financial institutions in Singapore; (B)banks outside Singapore; (C)non-bank financial institutions outside Singapore which are not offices or associated companies of the approved Finance and Treasury Centre; and (D)the issuance of any bond, note, debenture or other debt security which is not beneficially held or funded, directly or indirectly, at any time during the life of the issue by any office or associated company of the approved Finance and Treasury Centre which is not an approved office or associated company of the approved Finance and Treasury Centre; (v)the issuance of any bond, note, debenture or other debt security which is not beneficially held or funded, directly or indirectly, at any time during the life of the issue by any office or associated company of the approved Finance and Treasury Centre which is not an approved office or associated company of the approved Finance and Treasury Centre; (vi)banks outside Singapore; and (vii)non-bank financial institutions outside Singapore which are not its offices or associated companies;“qualifying services” means the following services provided in Singapore by an approved Finance and Treasury Centre to its approved offices and associated companies:

arranging credit facilities where the funds for providing the facilities are obtained from —

financial institutions in Singapore; and

the accumulated profits of its other approved offices and associated companies;

providing corporate finance advisory services;

providing guarantees, performance bonds, standby letters of credit and services relating to remittances where —

in the case of a guarantee, performance bond or standby letter of credit, the party in whose favour the facility is issued is —

a bank that holds a licence under section 7 or 79 of the Banking Act;

a merchant bank that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act;

a person who is not resident in Singapore and who does not have a permanent establishment in Singapore; (D)a person who is not resident in Singapore and who carries on any operation in Singapore through a permanent establishment in Singapore, where the services are not provided to that person through that operation;

a person who is resident in Singapore and who carries on an operation through a permanent establishment outside Singapore, where the services are provided to that person through that operation; or

in the case of services relating to remittances, the person to whom the remittances are made is —

a bank that holds a licence under section 7 or 79 of the Banking Act;

a merchant bank that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act; (C)a person who is not resident in Singapore and who does not have a permanent establishment in Singapore;

a person who is not resident in Singapore and who carries on any operation in Singapore through a permanent establishment in Singapore, where the services are not provided to that person through that operation;

arranging interest rate or currency swaps before 17th February 2006 with —

a bank that holds a licence under section 7 or 79 of the Banking Act (Cap. 19);

a merchant bank approved under section 28 of the Monetary Authority of Singapore Act (Cap. 186) before that date;

a person who is neither a resident of nor a permanent establishment in Singapore; or (iv)a branch office outside Singapore of a company resident in Singapore;

managing the funds of any of its approved offices or associated companies for the purpose of any designated investments within the meaning of the Income Tax (Income from Funds Managed for Foreign Investors) Regulations 2003 (G.N. No. S 640/2003) and where the associated company is not resident in Singapore and, unless otherwise approved by the Minister or such person as he may appoint —

[Deleted by S 483/99, wef Y/A 1999 & Sub Ys/A](ii)not less than 80% of the total number of its issued shares are beneficially owned, directly or indirectly, by persons who are neither citizens of Singapore nor resident in Singapore;

has no permanent establishment in Singapore other than the approved Finance and Treasury Centre;

does not carry on business in Singapore;

does not beneficially own more than 20% of the total number of issued shares of any company incorporated in Singapore; and

does not have 20% or more of the total number of its issued shares beneficially owned, directly or indirectly, by a company which does not fall within sub-paragraph (iii), (iv) or (v);

performing economic or investment research and analysis;

providing credit administration and control;

providing general management and administration;

providing business planning and co-ordination; and

arranging derivatives (including arranging interest rate or currency swaps) on or after 17th February 2006 with —

a bank that holds a licence under section 7 or 79 of the Banking Act;

a merchant bank that holds a merchant bank licence, or is treated as having been granted a merchant bank licence, under the Banking Act;

a person who is not resident in Singapore and who does not have a permanent establishment in Singapore; (iiia)a person who is not resident in Singapore and who carries on any operation in Singapore through a permanent establishment in Singapore where the services are not provided to that person through that operation; or

a branch office outside Singapore of a company resident in Singapore;“unit” and “unit trust” have the same meanings as in section 10B of the Act.