MAS Issues Consultation on Measures to Strengthen Regulations against Money Laundering and Terrorist Financing – Amendments Affecting Fund Managers
On July 15, 2014, the Monetary Authority of Singapore (“MAS”) issued a consultation paper entitled “Proposed Amendments to the Monetary Authority of Singapore Notices to Financial Institutions on Prevention of Money Laundering and Countering the Financing of Terrorism” (the “Consultation Paper”), which introduces substantial amendments to the MAS notices to financial institutions on anti-money laundering and countering the financing of terrorism (“AML/CFT”).
The scope of the proposed amendments in the Consultation Paper will be comprehensive across the Singapore financial sector covering all licensed fund management companies and registered fund management companies, as well as banks, merchant banks, finance companies, money-changers and remittance license holders, life insurers, other capital markets intermediaries, financial advisers, approved trustees, trust companies, stored value facility holders, and non-bank credit and charge card licensees.
In this briefing, we set out a summary of the key amendments proposed by the MAS to its Notice to Capital Markets Intermediaries – Prevention of Money Laundering and Countering the Financing of Terrorism (MAS Notice SFA04-N02) (the “Notice”), which would impact the fund management industry.
If you have any questions regarding this update, please contact the Sidley lawyer with whom you usually work.
Han Ming Ho
1“CMI” means a person holding a capital markets services license, a fund management company registered under paragraph 5(1)(i) of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations or a person exempted from having to hold such a license under paragraph 7(1)(b) of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations.
2“correspondent account services” means the provision of services under a cross-border relationship between a CMI and a respondent financial institution, in relation to any activity for which the CMI is regulated under the Securities and Futures Act, Chapter 289 of Singapore, whether for that respondent financial institution as principal or for that respondent financial institution’s customers.
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