Though AML (anti-money laundering) and CFT (Counting the Financing of Terrorism) regulations worldwide are based on similar standards, they might differ in details and procedures. The Sino Fintech team provides compliance services for multiple jurisdictions across Asia and assists in adjusting your existing documents to the laws of Singapore, Hong Kong, China, or other countries upon your request.
Here are the key points that your AML/ CFT policy should contain:
- The practical measures that your company takes against money laundering, including digital security measures to protect virtual assets and to protect the software used for providing fintech services;
- The company’s employees who are responsible for implementing AML/ CFT measures in the company;
- If the company involves third parties, independent auditors –procedures to perform those AML/ CFT checks;
- Software used by the company for AML/CFT purposes;
- Detailed procedure for suspected and revealed AML/CFT cases, the process of reporting those cases to criminal authorities;
- Procedures to prevent ML from both sides: ML by employees inside the company structure and ML by third parties connected with the company.
A brief overview of Singapore AML and KYC regulations
The primary legislation targeting ML (money laundering) is the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA). The CDSA criminalizes “primary” ML – laundering of the accused person’s own Criminal Benefits, including acquiring, processing, using, concealing, or transferring property representing the accused person’s Criminal Benefits – and “secondary” ML – laundering of someone else’s Criminal Benefits.
The MAS has issued several guidelines and regulations to ensure that financial institutions in Singapore comply with the AML/CFT laws. These guidelines include the following:
- Prevention of Money Laundering and Countering the Financing of Terrorism - A Risk-Based Approach (2015).
This guideline sets out the principles and procedures financial institutions should follow to identify, assess, and manage money laundering and terrorism financing risks.
- MAS Notice 626 - Prevention of Money Laundering and Countering the Financing of Terrorism.
This notice outlines the legal and regulatory requirements that financial institutions must comply with to prevent money laundering and terrorism financing.
- MAS Notice 1108 - Information to be Furnished to the Authority
This notice requires financial institutions to provide the MAS with information on their AML/CFT policies and procedures and to report suspicious transactions.
- MAS Notice 314 - Prevention of Money Laundering and Countering the Financing of Terrorism - Banks and Merchant Banks
This notice sets out specific requirements for banks and merchant banks in Singapore to comply with the AML/CFT laws.
Here are the key points that your AML/ CFT policy should contain:
- The practical measures that your company takes against money laundering, including digital security measures to protect virtual assets and to protect the software used for providing fintech services;
- The company’s employees who are responsible for implementing AML/ CFT measures in the company;
- If the company involves third parties, independent auditors –procedures to perform those AML/ CFT checks;
- Software used by the company for AML/CFT purposes;
- Detailed procedure for suspected and revealed AML/CFT cases, the process of reporting those cases to criminal authorities;
- Procedures to prevent ML from both sides: ML by employees inside the company structure and ML by third parties connected with the company.
A brief overview of Singapore AML and KYC regulations
The primary legislation targeting ML (money laundering) is the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA). The CDSA criminalizes “primary” ML – laundering of the accused person’s own Criminal Benefits, including acquiring, processing, using, concealing, or transferring property representing the accused person’s Criminal Benefits – and “secondary” ML – laundering of someone else’s Criminal Benefits.
The MAS has issued several guidelines and regulations to ensure that financial institutions in Singapore comply with the AML/CFT laws. These guidelines include the following:
- Prevention of Money Laundering and Countering the Financing of Terrorism - A Risk-Based Approach (2015).
This guideline sets out the principles and procedures financial institutions should follow to identify, assess, and manage money laundering and terrorism financing risks.
- MAS Notice 626 - Prevention of Money Laundering and Countering the Financing of Terrorism.
This notice outlines the legal and regulatory requirements that financial institutions must comply with to prevent money laundering and terrorism financing.
- MAS Notice 1108 - Information to be Furnished to the Authority
This notice requires financial institutions to provide the MAS with information on their AML/CFT policies and procedures and to report suspicious transactions.
- MAS Notice 314 - Prevention of Money Laundering and Countering the Financing of Terrorism - Banks and Merchant Banks
This notice sets out specific requirements for banks and merchant banks in Singapore to comply with the AML/CFT laws.