Singapore legislation
Regulation 6D
Regulation 6D
Simplified CDD measures
Subregulation 1
A moneylender may, instead of performing initial CDD measures in accordance with rule 6(3), or ongoing CDD measures in accordance with rule 6(3A), on a particular borrower or an agent, a connected party or a beneficial owner of the borrower, perform simplified CDD measures on the borrower, agent, connected party or beneficial owner, if —
the moneylender is of the view that the risks of money laundering, terrorism financing and proliferation financing are low; (b)either —
the moneylender has obtained the prior written approval of the Registrar to do so; or (ii)the borrower, agent, connected party or beneficial owner comes within a class or description of borrowers, or agents, connected parties or beneficial owners of borrowers, designated by the Registrar for the purposes of this paragraph;
the moneylender documents —
the details of the risk assessment undertaken; and
the nature of the simplified CDD measures applied; (d)the simplified CDD measures are commensurate with the level of the risks of money laundering, terrorism financing and proliferation financing identified by the moneylender; and
where sub-paragraph (b)(i) applies, the moneylender complies with all conditions and restrictions imposed by the Registrar when giving the written approval.
Subregulation 2
The Registrar must not grant written approval under paragraph (1)(b)(i) if the borrower, or any agent, connected party or beneficial owner of the borrower, is from or in a country outside Singapore —
in relation to which the FATF has called for countermeasures; or
known to have inadequate measures for the prevention of money laundering, terrorism financing or proliferation financing.
Subregulation 3
The Registrar may refuse to grant written approval under paragraph (1)(b)(i) if the Registrar is satisfied that —
the risks of money laundering, terrorism financing or proliferation financing are high; or (b)the simplified CDD measures proposed by the moneylender will not effectively achieve the objective of any CDD measure.
Subregulation 4
In this rule, simplified CDD measures are such measures as the moneylender considers adequate to effectively identify and verify the identities of the borrower and the agent, connected parties and beneficial owner of the borrower.