Subsidiary Legislation · As enacted
Moneylenders (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Rules 2009
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reg 1Citation and commencement
These Rules may be cited as the Moneylenders (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Rules 2009 and shall come into operation on 1st March 2009.
Subregulation 1
In these Rules, unless the context otherwise requires —[Deleted by S 522/2015 wef 01/09/2015][Deleted by S 373/2024 wef 01/05/2024][Deleted by S 522/2015 wef 01/09/2015][Deleted by S 373/2024 wef 01/05/2024]
[Deleted by S 522/2015 wef 01/09/2015]
In these Rules, unless the context otherwise requires, a reference to a financial institution supervised by the Authority shall not include a person who is exempted from being licensed, approved, registered or otherwise regulated by the Authority under any written law.
“agent”, in relation to a borrower, means the individual acting on behalf of or for the benefit of the borrower;
“beneficial owner”, in relation to a borrower, means —
an individual who ultimately owns or controls the borrower, or any one of 2 or more individuals who, acting together, ultimately own or control the borrower;
an individual who exercises ultimate effective control over the borrower, or any one of 2 or more individuals who, acting together, exercise ultimate effective control over the borrower; or
a person on whose behalf a relevant loan is obtained by the borrower;
“borrower” means the person to whom, or the legal arrangement to which, a moneylender grants or intends to grant a relevant loan;
“business relation” means the opening or maintenance of a loan account for a borrower;
“CDD measures”, or customer due diligence measures, means initial CDD measures, ongoing CDD measures, and the measures referred to in rule 6A(1);
“connected party” —
in relation to a borrower which is an entity (other than a partnership, limited partnership or limited liability partnership), means a director of the entity, or an individual having executive authority in the entity;
in relation to a borrower which is a partnership, limited partnership or limited liability partnership, means any partner or manager of the partnership, limited partnership or limited liability partnership; or
in relation to a borrower which is a legal arrangement, means any individual having executive authority (if any) in the arrangement;
“country” includes territory;
“domestic politically-exposed person” means an individual who is or has been entrusted with a prominent public function in Singapore;
“entity” means a sole proprietorship, a partnership, a limited partnership, a limited liability partnership, a corporation sole or a company, or any other association or body of persons corporate or unincorporate;
“FATF” means the intergovernmental body known as the Financial Action Task Force created in 1989;
“foreign politically-exposed person” means an individual who is or has been entrusted with a prominent public function in a country outside Singapore;
“initial CDD measures”, or initial customer due diligence measures, means —
the process of identifying, and obtaining the information necessary to identify and verify the identities of, a borrower, the agent of a borrower, the connected parties of a borrower, and the beneficial owner of a borrower; and
the process of understanding, and obtaining the information necessary to understand, the purpose of a loan;
“legal arrangement” means an express trust or other similar arrangement;
“moneylender” means a moneylender who is a licensee or an exempt moneylender;
“officer” has the same meaning as in section 89(5) of the Act;
“ongoing CDD measures”, or ongoing customer due diligence measures, means the measures set out in Part 2 of the Schedule;
“politically-exposed person” means —
a domestic politically-exposed person;
a foreign politically-exposed person; or (c)a politically-exposed person of an international organisation;
“politically-exposed person of an international organisation” means an individual who is or has been entrusted with a prominent public function in an international organisation;
“proliferation financing” means the financing of proliferation of weapons of mass destruction;
“prominent public function” includes the role held by a head of state, head of government, government minister, senior civil or public servant, senior judicial or military official, senior executive of a state-owned corporation, senior political party official, member of a legislature, or member of the senior management of an international organisation;
“reasonable measure” means an appropriate measure that is commensurate with the risk of money laundering, terrorism financing or proliferation financing;
“relevant foreign regulatory authority”, in relation to a moneylender, means an authority of a country outside Singapore exercising any function in respect of the moneylender that corresponds to a regulatory function of the Registrar under the Act;
“relevant law enforcement authority” means the Singapore Police Force, the Central Narcotics Bureau or the Corrupt Practices Investigation Bureau;
“relevant loan” means a loan of an aggregate value exceeding $3,000 or its equivalent value expressed in any other currency;
“Singapore government entity” means a ministry or department of the Government, an organ of State or a statutory board.
reg 3Application of these Rules
These Rules shall apply to every moneylender who grants secured or unsecured loans to the general public.
reg 4General principles
A moneylender shall exercise due diligence in accordance with these Rules when dealing with any borrower, or any agent or beneficial owner of a borrower.
A moneylender shall conduct his business in such a manner as to guard against the grant of any loan that is, may be connected with or facilitates money laundering, terrorism financing or proliferation financing.
A moneylender shall assist and cooperate with the relevant law enforcement authorities in detecting and preventing —
money laundering;
terrorism financing; and
proliferation financing.
Subregulation 1
A moneylender shall exercise due diligence in accordance with these Rules when dealing with any borrower, or any agent or beneficial owner of a borrower.
Subregulation 2
A moneylender shall conduct his business in such a manner as to guard against the grant of any loan that is, may be connected with or facilitates money laundering, terrorism financing or proliferation financing.
Subregulation 3
A moneylender shall assist and cooperate with the relevant law enforcement authorities in detecting and preventing —
money laundering;
terrorism financing; and
proliferation financing.
reg 5Internal policies, procedures and controls
A moneylender must develop and implement internal policies, procedures and controls to enable the moneylender to effectively manage and mitigate any risks of money laundering, terrorism financing or proliferation financing —
identified under rule 5B; or (b)notified to the moneylender by the Registrar or any relevant law enforcement authority.
The moneylender must —
monitor the implementation of the policies, procedures and controls referred to in paragraph (1); and
enhance those policies, procedures and controls where necessary, if a higher risk of money laundering, terrorism financing or proliferation financing is —
identified under rule 5B; or (ii)notified to the moneylender by the Registrar or any relevant law enforcement authority.
The moneylender must ensure that the policies, procedures and controls referred to in paragraph (1) (including those enhanced under paragraph (2)) are —
approved by the senior management of the moneylender; and
communicated to the employees and officers of the moneylender.
The policies, procedures and controls referred to in paragraph (1) include those relating to —
CDD measures;
record keeping;
detection of unusual or suspicious applications or transactions, and the making of disclosures under section 45(1) of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 or Part 3 of the Terrorism (Suppression of Financing) Act 2002;
audit of the policies, procedures and controls;
compliance management arrangements; (f)the hiring, appointment and training of employees and officers; and
measures to determine if a borrower, an agent of a borrower, any connected party of a borrower, or any beneficial owner of a borrower is a politically-exposed person.
In formulating the policies, procedures and controls referred to in paragraph (1) or enhancing them under paragraph (2), a moneylender must take into consideration any threat of money laundering, terrorism financing or proliferation financing that may arise from the use of new or developing technologies, especially those that favour anonymity.
Any moneylender who contravenes paragraph (1), (2)(a) or (b), (3)(a) or (b) or (5) shall be guilty of an offence.
Subregulation 1
A moneylender must develop and implement internal policies, procedures and controls to enable the moneylender to effectively manage and mitigate any risks of money laundering, terrorism financing or proliferation financing —
identified under rule 5B; or (b)notified to the moneylender by the Registrar or any relevant law enforcement authority.
Subregulation 2
The moneylender must —
monitor the implementation of the policies, procedures and controls referred to in paragraph (1); and
enhance those policies, procedures and controls where necessary, if a higher risk of money laundering, terrorism financing or proliferation financing is —
identified under rule 5B; or (ii)notified to the moneylender by the Registrar or any relevant law enforcement authority.
Subregulation 3
The moneylender must ensure that the policies, procedures and controls referred to in paragraph (1) (including those enhanced under paragraph (2)) are —
approved by the senior management of the moneylender; and
communicated to the employees and officers of the moneylender.
Subregulation 4
The policies, procedures and controls referred to in paragraph (1) include those relating to —
CDD measures;
record keeping;
detection of unusual or suspicious applications or transactions, and the making of disclosures under section 45(1) of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 or Part 3 of the Terrorism (Suppression of Financing) Act 2002;
audit of the policies, procedures and controls;
compliance management arrangements; (f)the hiring, appointment and training of employees and officers; and
measures to determine if a borrower, an agent of a borrower, any connected party of a borrower, or any beneficial owner of a borrower is a politically-exposed person.
Subregulation 5
In formulating the policies, procedures and controls referred to in paragraph (1) or enhancing them under paragraph (2), a moneylender must take into consideration any threat of money laundering, terrorism financing or proliferation financing that may arise from the use of new or developing technologies, especially those that favour anonymity.
Subregulation 6
Any moneylender who contravenes paragraph (1), (2)(a) or (b), (3)(a) or (b) or (5) shall be guilty of an offence.
reg 5AGroup policy
A moneylender that is a company incorporated in Singapore with one or more branches or subsidiaries (whether located or incorporated in Singapore or elsewhere) must —
develop a group policy to —
prevent money laundering, terrorism financing and proliferation financing; and
manage and mitigate the risks of money laundering, terrorism financing and proliferation financing; and
extend the group policy to all of those branches and subsidiaries.
Where the moneylender has a branch or subsidiary in a country outside Singapore that has laws for the prevention of money laundering, terrorism financing or proliferation financing that differ from those of Singapore —
the moneylender must require the management of that branch or subsidiary to apply the more stringent of the laws, to the extent that the law of the country outside Singapore permits; and (b)where the management of that branch or subsidiary is unable to fully apply the more stringent law, the moneylender must report this to the Registrar and must, instead of sub-paragraph (a) —
perform such additional measures as are appropriate to managing the risks of money laundering, terrorism financing and proliferation financing; and
comply with such directions as may be given by the Registrar.
Any moneylender who contravenes paragraph (1)(a) or (b) or (2)(a) or (b) shall be guilty of an offence.
Subregulation 1
A moneylender that is a company incorporated in Singapore with one or more branches or subsidiaries (whether located or incorporated in Singapore or elsewhere) must —
develop a group policy to —
prevent money laundering, terrorism financing and proliferation financing; and
manage and mitigate the risks of money laundering, terrorism financing and proliferation financing; and
extend the group policy to all of those branches and subsidiaries.
Subregulation 2
Where the moneylender has a branch or subsidiary in a country outside Singapore that has laws for the prevention of money laundering, terrorism financing or proliferation financing that differ from those of Singapore —
the moneylender must require the management of that branch or subsidiary to apply the more stringent of the laws, to the extent that the law of the country outside Singapore permits; and (b)where the management of that branch or subsidiary is unable to fully apply the more stringent law, the moneylender must report this to the Registrar and must, instead of sub-paragraph (a) —
perform such additional measures as are appropriate to managing the risks of money laundering, terrorism financing and proliferation financing; and
comply with such directions as may be given by the Registrar.
Subregulation 3
Any moneylender who contravenes paragraph (1)(a) or (b) or (2)(a) or (b) shall be guilty of an offence.
reg 5BAssessment of risks
A moneylender must take appropriate steps to identify, assess and understand the risks of money laundering, terrorism financing and proliferation financing arising from the business of moneylending carried on by the moneylender, relative to —
the borrowers and their agents, connected parties and beneficial owners; (b)the countries the borrowers and their agents, connected parties and beneficial owners reside or operate in; (c)the countries the moneylender has operations in; (d)the products, services, transactions and manner by which the loans are disbursed and repaid; and
the size of the moneylender’s business.
The steps referred to in paragraph (1) include —
documenting the moneylender’s risk assessments; (b)considering all the relevant risks before determining the level of the overall risk and the appropriate type and extent of mitigation to be applied;
keeping the risk assessments up to date; (d)having appropriate mechanisms to provide any information required by the Registrar under paragraph (3); and
before launching a new product or new business practice (including a new manner for disbursing or repaying loans), or using a new or developing technology for any new or existing product, identifying and assessing the risks that may arise in relation to the product, practice or technology, and taking appropriate measures to mitigate such risks.
The Registrar may, by written notice to a moneylender, require the moneylender to provide, within the time specified in the notice, any information obtained by the moneylender from taking the steps referred to in paragraph (1), and the moneylender must comply with the notice.
Any moneylender who contravenes paragraph (1) or (3) shall be guilty of an offence.
Subregulation 1
A moneylender must take appropriate steps to identify, assess and understand the risks of money laundering, terrorism financing and proliferation financing arising from the business of moneylending carried on by the moneylender, relative to —
the borrowers and their agents, connected parties and beneficial owners; (b)the countries the borrowers and their agents, connected parties and beneficial owners reside or operate in; (c)the countries the moneylender has operations in; (d)the products, services, transactions and manner by which the loans are disbursed and repaid; and
the size of the moneylender’s business.
Subregulation 2
The steps referred to in paragraph (1) include —
documenting the moneylender’s risk assessments; (b)considering all the relevant risks before determining the level of the overall risk and the appropriate type and extent of mitigation to be applied;
keeping the risk assessments up to date; (d)having appropriate mechanisms to provide any information required by the Registrar under paragraph (3); and
before launching a new product or new business practice (including a new manner for disbursing or repaying loans), or using a new or developing technology for any new or existing product, identifying and assessing the risks that may arise in relation to the product, practice or technology, and taking appropriate measures to mitigate such risks.
Subregulation 3
The Registrar may, by written notice to a moneylender, require the moneylender to provide, within the time specified in the notice, any information obtained by the moneylender from taking the steps referred to in paragraph (1), and the moneylender must comply with the notice.
Subregulation 4
Any moneylender who contravenes paragraph (1) or (3) shall be guilty of an offence.
reg 6Initial and ongoing CDD measures
A moneylender shall perform initial CDD measures in respect of a borrower when the moneylender —
intends to grant, or is considering the grant of, a relevant loan to the borrower;
suspects that the borrower or any agent, connected party or beneficial owner of the borrower is engaged in money laundering, terrorism financing or proliferation financing; or
has doubts about the veracity or adequacy of any information previously obtained from the borrower.
For the avoidance of doubt, where a moneylender (referred to in this rule as the acquiring moneylender) acquires, either in whole or in part, the business of another moneylender (whether in Singapore or elsewhere), the acquiring moneylender shall perform initial CDD measures on the customers who become the borrowers of the acquiring moneylender as a result of the acquisition, except where the acquiring moneylender —
has acquired at the same time all corresponding customer records (including customer identification information) and has no doubt or concern about the veracity or adequacy of the information so acquired; and (b)has conducted due diligence enquiries that have not raised any doubt on the part of the acquiring moneylender as to the adequacy of measures for the prevention of money laundering, terrorism financing and proliferation financing previously adopted in relation to the business or the part of the business acquired by the acquiring moneylender.
A moneylender shall perform the initial CDD measures referred to in paragraphs (1) and (2) by complying with the requirements specified in rule 6C and Part 1 of the Schedule.
A moneylender must perform ongoing CDD measures at the times and in the manner specified in rule 6C and Part 2 of the Schedule.
For the purposes of paragraph (1)(a), where a moneylender suspects that 2 or more loans are or may be related, linked or the result of a deliberate restructuring of an otherwise single relevant loan into smaller transactions in order to evade the thresholds provided for in these Rules, the moneylender shall aggregate them and treat them as a single relevant loan.
Any moneylender who contravenes paragraph (1), (2), (3), (3A) or (4) shall be guilty of an offence.
Subregulation 1
A moneylender shall perform initial CDD measures in respect of a borrower when the moneylender —
intends to grant, or is considering the grant of, a relevant loan to the borrower;
suspects that the borrower or any agent, connected party or beneficial owner of the borrower is engaged in money laundering, terrorism financing or proliferation financing; or
has doubts about the veracity or adequacy of any information previously obtained from the borrower.
Subregulation 2
For the avoidance of doubt, where a moneylender (referred to in this rule as the acquiring moneylender) acquires, either in whole or in part, the business of another moneylender (whether in Singapore or elsewhere), the acquiring moneylender shall perform initial CDD measures on the customers who become the borrowers of the acquiring moneylender as a result of the acquisition, except where the acquiring moneylender —
has acquired at the same time all corresponding customer records (including customer identification information) and has no doubt or concern about the veracity or adequacy of the information so acquired; and (b)has conducted due diligence enquiries that have not raised any doubt on the part of the acquiring moneylender as to the adequacy of measures for the prevention of money laundering, terrorism financing and proliferation financing previously adopted in relation to the business or the part of the business acquired by the acquiring moneylender.
Subregulation 3
A moneylender shall perform the initial CDD measures referred to in paragraphs (1) and (2) by complying with the requirements specified in rule 6C and Part 1 of the Schedule.
Subregulation 3A
A moneylender must perform ongoing CDD measures at the times and in the manner specified in rule 6C and Part 2 of the Schedule.
Subregulation 4
For the purposes of paragraph (1)(a), where a moneylender suspects that 2 or more loans are or may be related, linked or the result of a deliberate restructuring of an otherwise single relevant loan into smaller transactions in order to evade the thresholds provided for in these Rules, the moneylender shall aggregate them and treat them as a single relevant loan.
Subregulation 5
Any moneylender who contravenes paragraph (1), (2), (3), (3A) or (4) shall be guilty of an offence.