MAS issues AML/CFT Notice for financial institutions

Wednesday 9 March 2022 14:10 CET | News

The Monetary Authority of Singapore (MAS) has issued a new notice and other various revised notices applicable to financial institutions and variable capital companies (VCCs).

Firstly, MAS Notice on anti-money laundering and countering the financing of terrorism (AML/CFT) for financial institutions (FIs) dealing in precious stones, precious metals, and precious products (PSM) (PSM AML/CFT Notice).

Moreover, it revised MAS AML/CFT Notices applicable to FIs and VCCs, collectively, MAS AML/CFT Notices. They follow MAS’ earlier consultation in July 2021 concerning the new PSM AML/CFT Notice and revisions to existing MAS AML/CFT Notices in its Consultation Paper on the Proposed New AML/CFT Notice for Precious Stones and Precious Metals Activities and Updates to AML/CFT Notices.

The PSM AML/CFT Notice is an overlay above the FI-specific MAS AML/ CFT Notices that apply to the conduct of activities regulated under other principal securities legislation such as the Securities and Futures Act 2001 (SFA). It applies to FIs that carry on the business of ‘regulated dealing’ in PSM or as an intermediary for ‘regulated dealing’ in PSM.

Among other requirements in the PSM AML/CFT Notice, the FI regulated under the PSM AML/CFT Notice must conduct customer due diligence (CDD), such as when the FI establishes an account relationship with any customer and when the FI undertakes an occasional PSM transaction more than USD 14,692.

On the other hand, banks, merchant banks, finance companies, and credit card or charge card licences which provide DPT services are exempted from licencing requirements under the PS Act and are not subject to the AML/CFT requirements set out in the MAS Notice.

To deal with the risks posed by the nature of digital token transactions, MAS has introduced AML/CFT requirements relating to dealings in DPTs and/or digital tokens that are capital markets products (‘DCMPTs’) by revising the FI-specific AML/CFT Notices.

The new requirements include conducting CDD from the first dollar for DPT transactions undertaken by the FIs for any customer who has not otherwise established an account relationship with the FIs.

As MAS considers digital token transactions to pose higher ML/TF risks, the FI-specific MAS AML/CFT Notices have been revised such that the AML/CFT requirements will similarly apply to such digital token transactions.

Credit card or charge card licensees are exempted from the licensing requirement under the PS Act when they provide payment services such as cross-border money transfer service.

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Keywords: Monetary Authority of Singapore (MAS), regulation, money laundering, financial institutions, financial crime
Categories: Fraud & Financial Crime
Companies: MAS
Countries: Singapore
This article is part of category

Fraud & Financial Crime


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