Singapore legislation
Regulation 7
Regulation 7
Enhanced customer due diligence measures
Subregulation 1
Where any of the circumstances mentioned in paragraph (2) exists, a regulated dealer must, in addition to performing the customer due diligence measures prescribed in regulations 5 and 6, perform the enhanced customer due diligence measures mentioned in paragraph (4).
Subregulation 2
The circumstances in which a regulated dealer must perform the enhanced customer due diligence measures are any of the following:
the customer, a person on whose behalf the customer is acting or a beneficial owner of the customer (where the customer is an entity or a legal arrangement), in any transaction —
is a politically‑exposed person, a family member of a politically‑exposed person, or a close associate of a politically‑exposed person;
is a resident of or originates from a relevant country or territory; or
is a person that the Registrar has notified the regulated dealer is a person that presents a high risk of money laundering, terrorism financing or proliferation financing;
the regulated dealer has reason to believe that the customer, the person on whose behalf the customer is acting or a beneficial owner of the customer (where the customer is an entity or a legal arrangement), or the transaction entered into or about to be entered into, may present a high risk of money laundering, terrorism financing or proliferation financing.
Subregulation 3
For the purpose of determining whether a person mentioned in paragraph (2)(b) may present a high risk of money laundering, terrorism financing or proliferation financing, the regulated dealer must consider whether the person is a resident of or originates from —
a foreign country or territory which the FATF (by a public statement, notice or directive published on its official website at https://www.fatf-gafi.org) identifies as a foreign country or territory subject to increased monitoring; or
a foreign country or territory which the Registrar has notified the regulated dealer to be a foreign country or territory with inadequate measures to prevent money laundering, terrorism financing or proliferation financing.
Subregulation 4
The enhanced customer due diligence measures to be performed by the regulated dealer are as follows:
obtain the approval of a person holding a senior managerial or executive position in the regulated dealer before —
in the case of a new customer, entering into a transaction with the customer; or
in the case of an existing customer, continuing to transact with the customer;
take reasonable measures to establish the income level, source of wealth, and the source of funds, of the customer and, if the customer is an entity or a legal arrangement, of the beneficial owner or owners of the customer;
conduct enhanced ongoing monitoring of the transactions entered into with the customer so as to identify suspicious transactions, including transactions or patterns of transactions that are inconsistent with the customer’s profile;
take all reasonable measures as are appropriate to the risks of money laundering, terrorism financing or proliferation financing in relation to the customer.
Subregulation 5
A regulated dealer must implement appropriate policies, controls and procedures to determine whether the circumstances mentioned in paragraph (2) exist.