Singapore legislation
Regulation 6G
Regulation 6G
Performance of CDD measures by third parties
Subregulation 1
Except as provided in paragraph (2), a moneylender must not rely on a third party to perform any CDD measure.
Subregulation 2
A moneylender may rely on a specified third party to perform initial CDD measures, if and only if —
the moneylender has obtained the prior written approval of the Registrar to do so; and
the moneylender complies with all conditions and restrictions imposed by the Registrar when giving the approval.
Subregulation 3
The Registrar may refuse to grant approval under paragraph (2)(a) unless the moneylender can satisfy the Registrar that —
the specified third party is subject to, and supervised for compliance with, requirements relating to the prevention of money laundering, terrorism financing and proliferation financing, consistent with standards set by the FATF, and has adequate measures in place to comply with those requirements; (b)the specified third party is not one which moneylenders have been precluded by the Registrar from relying on to perform CDD measures;
the information to be obtained by the specified third party from performing CDD measures can be relayed to the moneylender without delay; (d)the specified third party is able and willing to provide without delay, upon the request of the moneylender, any document obtained by the specified third party from performing any CDD measure; and
the moneylender has taken appropriate steps to identify, assess and understand the risks of money laundering, terrorism financing and proliferation financing particular to any country outside Singapore that the specified third party operates in (if applicable).
Subregulation 4
A moneylender who relies on a specified third party to perform any CDD measures must obtain from the specified third party the information obtained by the specified third party from those measures as soon as practicable after the specified third party has performed those measures.
Subregulation 5
To avoid doubt, despite relying on a specified third party to perform any CDD measure, the moneylender remains responsible for the performance of that measure under these Rules.
Subregulation 6
A moneylender who contravenes paragraph (1) or (4) shall be guilty of an offence.
Subregulation 7
In this rule, “specified third party” means —
a bank in Singapore licensed under section 7 of the Banking Act 1970;
a merchant bank approved under section 55S of the Banking Act 1970;
a finance company licensed under section 6 of the Finance Companies Act 1967;
a financial adviser licensed under section 10 of the Financial Advisers Act 2001, except one which is licensed only in respect of the financial advisory service specified in paragraph 2 of the Second Schedule to that Act (namely, advising others by issuing or promulgating research analyses or research reports, whether in electronic, print or other form, concerning any investment product);
a holder of a capital markets services licence granted under section 86 of the Securities and Futures Act 2001;
[Deleted by S 635/2024 wef 01/08/2024](g)a person who is exempt from holding a financial adviser’s licence under section 20(1)(g) of the Financial Advisers Act 2001 read with regulation 27(1)(d) of the Financial Advisers Regulations (Rg 2), except one who is exempt only in respect of the financial advisory service specified in paragraph 2 of the Second Schedule to that Act (namely, advising others by issuing or promulgating research analyses or research reports, whether in electronic, print or other form, concerning any investment product); or
such other person as the Registrar may specify.