Singapore legislation
Regulation 10
Regulation 10
Performance of customer due diligence measures by third parties
Subregulation 1
A regulated dealer may rely on a third party to perform the customer due diligence measures which the regulated dealer is required to perform under regulations 5 to 8, if the following requirements are met:
the regulated dealer is satisfied that the third party it intends to rely on —
is subject to and supervised for compliance with requirements for the prevention of money laundering, terrorism financing and proliferation financing, consistent with standards set by the FATF; (ii)has adequate measures in place to comply with those requirements mentioned in sub‑paragraph (i); and
is willing and able to provide, without delay, on the regulated dealer’s request, any document acquired by the third party as a result of the customer due diligence measures performed for the regulated dealer;
the third party is not precluded from acting as such by the Registrar;
the regulated dealer takes appropriate steps to identify, assess and understand the risks of money laundering, terrorism financing and proliferation financing, in the countries or territories that the third party operates in, if applicable.
Subregulation 2
A regulated dealer must not rely on a third party to conduct ongoing monitoring under regulation 11.
Subregulation 3
Where a regulated dealer decides to rely on a third party to carry out customer due diligence measures, the regulated dealer must —
document the basis for the regulated dealer’s opinion in paragraph (1)(a); and
obtain from the third party without delay all documents acquired as a result of the customer due diligence measures performed by the third party.
Subregulation 4
To avoid doubt, despite the reliance on a third party, a regulated dealer remains responsible for compliance with the obligations to perform customer due diligence measures and keep records under these Regulations.