The Monetary Authority of Singapore (“MAS”) has issued a circular titled “Money Laundering and Terrorism Financing (“ML/TF”) Risks in the Wealth Management Sector” on 3 March 2023, which reminds all financial institutions (“FIs”) to remain vigilant of ML/TF risks in the wealth management sector, and to review existing controls to ensure that they keep pace with growth in their wealth management businesses.
In particular, the circular highlights three main areas that FIs should take note: (1) strengthening board and senior management oversight and risk and control functions (including keeping the board and senior management apprised of potential ML/TF risks arising from high growth areas); (2) taking steps to review customer due diligence practices in high growth areas and conducting quality assurance testing on such practices; and (3) maintaining vigilance over customers / transactions which present higher ML/TF risks.
The circular may be accessed at the link here.
Our Financial Services Regulatory Practice advises on a broad range of issues that concern FIs, including AML/CFT related obligations. Reach out to our Financial Services Regulatory Partners Elaine Chan, Rosabel Ng, Chan Jia Hui, Tian Sion Yoong, or find out more about our practice here.