Singapore legislation
Regulation 5B
Regulation 5B
Assessment of risks
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.