Singapore legislation
Regulation 6
Regulation 6
Initial and ongoing CDD measures
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.