Singapore legislation
Regulation 6E
Regulation 6E
Enhanced CDD measures for politically‑exposed persons
Subregulation 1
A moneylender must, in addition to the obligations under these Rules, perform the measures referred to in paragraph (2) on a borrower, if the moneylender knows or has reasonable grounds to believe that —
the borrower or the borrower’s agent (if any) is a politically‑exposed person; or
where the borrower is an entity or a legal arrangement, the borrower has a connected party or beneficial owner who is a politically‑exposed person.
Subregulation 2
The measures mentioned in paragraph (1) are —
documenting, during the course of the business relation or when undertaking a transaction with or for the borrower, each movement of funds in the account used for disbursing or repaying a loan, and assessing the likelihood of the account being used in connection with any of the following activities:
money laundering;
terrorism financing;
proliferation financing; and
establishing by appropriate and reasonable means the source of wealth and source of funds of the borrower or beneficial owner.
Subregulation 3
A moneylender who —
has identified any borrower or any agent, connected party or beneficial owner of a borrower to be a politically‑exposed person; or
subsequently comes to know that any borrower or any agent, connected party or beneficial owner of a borrower is or was a politically‑exposed person,must obtain a decision from the moneylender’s senior management on whether to establish or maintain the business relation with the borrower.
Subregulation 4
The moneylender must keep a written record of the moneylender’s findings and the basis of a decision under paragraph (3), and must produce these to a relevant law enforcement authority upon demand.
Subregulation 5
A moneylender may adopt a risk-based approach in the application of measures under this rule in relation to —
a domestic politically‑exposed person;
a politically‑exposed person of an international organisation; or
a politically‑exposed person who has stepped down from a prominent public function, taking into consideration the level of influence the person continues to exercise after stepping down from that function.
Subregulation 6
Paragraph (5) does not apply if the moneylender knows or ought reasonably to know that the business relation or transaction in question presents a high risk of money laundering, terrorism financing or proliferation financing.
Subregulation 7
A moneylender who contravenes paragraph (1), (3) or (4) shall be guilty of an offence.
Subregulation 8
In this rule, each reference to a politically‑exposed person, includes a reference to a family member or close associate of the person.
Subregulation 9
In this rule, “family member”, in relation to a politically‑exposed person, means a parent, a step‑parent, a child, a stepchild, an adopted child, a spouse, a sibling, a stepsibling or an adopted sibling of the person.
Subregulation 10
In this rule, a person, (A), is a close associate of a politically‑exposed person, (B), if —
A is a partner of B;
A is an employee or employer of B;
A is an officer of any corporation of which B is an officer;
A is an employee of an individual of whom B is an employee;
A is accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of B;
B is accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of A;
A is a person with whom B has an agreement or arrangement, whether oral or in writing and whether express or implied, to act together to apply for or obtain a loan from a moneylender; or
A is closely connected with B socially or professionally in any manner not specified in sub‑paragraphs (a) to (g).