MAS seeks comment on four notices, which contain requirements on record-keeping, internal policies, and the provision of records to MAS upon request.
MAS (Monetary Authority of Singapore) has issued a consultation paper on proposed AML Notices for cross-border business arrangements of capital markets intermediaries under proposed exemption frameworks.
In March 2021, MAS issued a consultation proposing to introduce an exemption for cross-border business arrangements involving foreign head offices or branches of FIs in Singapore from the applicable business conduct and representative notification requirements under the SFA (Securities and Futures Act) and FAA (Financial Advisers Act) when they serve Singapore customers. (the ‘Branch Framework’)
The regulator also sought feedback on the proposed notification forms to be submitted to MAS at the point of commencement of the arrangement and on an ongoing basis, as well as the draft regulations and notices, for both the proposed Branch Framework and the proposed exemption framework for cross-border business arrangements between Singapore FIs and their foreign related corporations. (the ‘FRC framework’).
MAS had noted in the consultation that draft Notices on proposed AML/CFT requirements would be issued under both the proposed Branch Framework and FRC framework.
The new consultation seeks feedback on these proposed AML Notices.
Under the proposed Branch Framework and FRC Framework, the Singapore FI is required to have in place policies and procedures to oversee the conduct of the Foreign Offices or FRCs, as the case may be, and their representatives under the cross-border business arrangement.
The applicable policies and procedures include conducting CDD (customer due diligence), maintaining or having access to all CDD records kept overseas by the Foreign Offices or FRCs that relate to the arrangements, and providing MAS with timely access to these records.
MAS seeks comment on four notices, which contain requirements on record-keeping, internal policies that must be in place, and the provision of records upon request. The Notices allow the collection, use and disclosure of the personal data of individual customers without consent for the purposes of complying AML/CFT requirements.
The following four notices are open for consultation until 11 June 2021.
Each of the AML Notices shall take effect from 9 October 2021.