Singapore legislation
Regulation 5
Regulation 5
Customer due diligence measures where customer is individual
Subregulation 1
Subject to regulations 8 and 9, for the purposes of section 16 of the Act, the customer due diligence measures to be performed by a regulated dealer before entering into any designated transaction with a customer who is an individual are all of the following:
obtain the customer’s identifying information;
verify the customer’s identity using reliable and independent sources, such as the customer’s identity card, passport or other document of identity issued by a government; (c)enquire whether the customer is the owner of the cash or cash equivalent received as payment in the cash transaction, and if not, to obtain the identifying information of the owner of that cash or cash equivalent; (d)if the customer is selling any precious stone, precious metal, precious product or asset‑backed token to the regulated dealer, enquire whether the customer is the owner of the precious stone, precious metal, precious product or asset‑backed token, and if not, to obtain the identifying information of the owner;
if the enquiry in paragraph (c) or (d) reveals that the customer is not the owner of the cash, cash equivalent, precious stone, precious metal, precious product or asset‑backed token (as the case may be), take reasonable measures to verify the owner’s identity using reliable and independent sources;
ascertain whether the customer is acting on behalf of any other person, and if so —
if that other person is an individual, identify and take reasonable measures to verify the identity of that individual, using reliable and independent sources;
if that other person is an entity or a legal arrangement, perform the customer due diligence measures specified in regulation 6 on that entity or legal arrangement; and
obtain appropriate documentary evidence to verify that the customer is authorised to act on behalf of that other person;
ascertain whether any person is acting on behalf of the customer in relation to and for the purpose of the designated transaction, and if so —
if that other person is an individual, identify and take reasonable measures to verify the identity of that individual, using reliable and independent sources;
if that other person is an entity or a legal arrangement, perform the customer due diligence measures specified in regulation 6 on that entity or legal arrangement; and
obtain appropriate documentary evidence to verify that that other person is authorised to act on behalf of the customer.
Subregulation 2
Without affecting paragraph (1), where any of the circumstances in section 16(1) of the Act apply, a regulated dealer must understand and, where appropriate, obtain the information necessary to understand, the purpose of its business relationship with a customer who is an individual.