The Financial Action Task Force (“FATF”) sets standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
The primary policies issued by the FATF are the Forty Recommendations on money laundering and the Nine Special Recommendations on Terrorism Financing. The FAFT Recommendations are recognised as the global anti-money laundering and counter-terrorist financing (“AML/CFT”) standard.
Singapore is a member of FAFT and the Monetary Authority of Singapore (“MAS”) which applies the FATF’s AML/CFT standard, has issued Notice to Capital Markets Intermediaries on Prevention of Money Laundering and Countering the Financing of Terrorism – Capital Markets Intermediaries
Described below are some of the pertinent implications arising from the recommendations made by FATF as well as MAS notice, specifically on Customer Due Diligence (e.g. identity verification) and reliance on intermediaries.
2. Customer Due Diligence
Capital Markets Intermediaries ("CMI") are required to undertake Customer Due Diligence ("CDD") measures when establishing business relationship, carrying out occasional transactions, there is a suspicion of money laundering or terrorist financing, or the CMI has doubts about the veracity or adequacy of previously obtained customer indentification data.
The principles for CMIs in the conduct of CDD are set out in the MAS Notice. CMIs are required to verify the identity of the customer and beneficial owner before or during the course of establishing a business relationship or conducting transactions for occasional customers. CMIs may complete the verification as soon as reasonably practicable following the establishment of the relationship, where the money laundering and terrorist financing risks are effectively managed and where this is essential not to interrupt the normal conduct of business.
These requirements apply to all new customers as well as to existing customers on the basis of materiality and risk, and to conduct due diligence on such existing relationships at appropriate times.
1. FOR INDIVIDUAL SUBSCRIBERS:
1.1 Certified copy of passport photo page, driving license or identity card, preferably in colour, showing clear photo identification, date of birth and signature. Where the photo ID does not include the nationality of the individual, this information should be provided separately.
1.2 Verified current residential address, e.g. recent utility bill (or notarized or certified copy thereof) but not a mobile phone bill. A driver’s license may not be used for verification of address.
1.3 A copy of the remittance advice in respect of the subscription monies for this application.
2. FOR CORPORATE SUBSCRIBERS:
2.1 Certified copy of Certificate of Incorporation/Registration and evidence of Good Standing.
2.2 Certified copy of Memorandum & Articles of Association or By-Laws (or the equivalent).
2.3 Details of the registered office and the address from which the business is transacted.
2.4 Nature of the business of the company.
2.5 Certified copy of Registers of Members/Shareholders/Investors showing addresses and amounts or percentages of contributions.
2.6 Certified copy of Register of Directors (if directors are appointed).
2.7 Structure chart, showing holdings up to the ultimate beneficial owners and identifying the percentage holding of each such ultimate beneficial owner (if applicable).
2.8 Where applicable, a certified true copy of an authorised signatory list (if any) with specimen signatures of the authorised signatories and signing mandate, or if none, certified true copy(ies) of Board Resolution(s) or other evidence of authority of persons representing the Corporation.
2.9 Audited financial statements (if prepared).
2.10 Individual identification documents referred to in 1.1 in respect of each of the directors, all authorized signatories, all ultimate principals and all beneficial owners (where applicable).
2.11 A copy of the remittance advice in respect of the subscription monies for this application.
2.12 Full due diligence documentation may not be required in circumstances where the corporation is:
(i) a financial institution supervised by the Monetary Authority of Singapore (“MAS”) (other than a holder of a money changer’s licence or a holder of a remittance licence, unless specifically notified by MAS);
(ii) a financial institution incorporated or established outside Singapore that is subject to and supervised for compliance with AML/CFT requirements consistent with standards set by the FATF;
(iii) a Singapore government entity;
(iv) a foreign government entity;
(v) an entity listed on the Singapore Exchange; or
(vi) an entity listed on a stock exchange outside of Singapore that is subject to regulatory disclosure requirements.
However, for (ii) above, independent evidence that the financial institution is licenced and that the jurisdiction where the financial institution is located applied appropriate FATF standards is to be provided. Where a financial institution is subscribing on behalf of its client, an AML comfort letter is to be provided.
3. FOR SUBSCRIBERS WHO ARE MUTUAL FUNDS:
3.1 A copy of the most recent offering memorandum.
3.2 Where the manager is a financial institution that is subject to and supervised for compliance with the AML requirements by MAS or consistent with standards set by the FATF:
(i) written confirmation that underlying investors have been identified and anti-money laundering checks have been carried out to FATF standards on the underlying investors in the investing fund; and
(ii) evidence of the manager being regulated, subject to and supervised for compliance with the AML requirements consistent with standards set by the FATF.
3.3 Where the manager is not a financial institution that is subject to and supervised for compliance with the AML requirements consistent with standards set by the FATF, the documents to be provided based on the type of entity (corporate, trust, partnership) as indicated in this Annex.
4. FOR SUBSCRIBERS WHO ARE LIMITED PARTNERSHIPS:
4.1 Certified copy of Certificate of Registration and evidence of Good Standing.
4.2 Certified copy of Limited Partnership Agreement.
4.3 Details of the registered office and the address from which the business is undertaken.
4.4 Nature of the business of the Limited Partnership.
4.5 Certified copy Register of Limited Partnership Interests.
4.6 Individual identification documents referred to in 1.1 in respect of all partners, authorised representatives or persons exercising executive control.
4.7 Corporate identification documents referred to in 2.1 and 2.2 in respect of any institutional partners or an institution exercising executive control.
4.8 Partnership authorization of transaction.
4.9 A copy of the remittance advice in respect of the subscription monies for this application.
5. FOR SUBSCRIBERS WHO ARE TRUSTS:
5.1 Due diligence and individual identification documents referred to in section 1 (FOR INDIVIDUAL SUBSCRIBERS) in respect of each individual settlor, trustee, beneficiary and all authorised representatives (where applicable).
5.2 Due diligence and corporate identification documents referred to in section 2 (FOR CORPORATE SUBSCRIBERS) or section 4 (FOR SUBSCRIBERS WHO ARE LIMITED PARTNERSHIPS) in respect of all institutional settlors, trustees, and beneficiaries (where applicable).
5.3 Where the trustee and settlor are individuals, reference from a bank with which there has been a business relationship for a minimum of two years for the trustee and the settlor. Alternatively, a reference can be provided from a respectable professional such as a lawyer or accountant. Where the bank reference is not provided from an entity which is regulated in a reputable jurisdiction, a professional reference will also be required. The reference(s) should detail the length of time the relationship has been established, the nature of the relationship, confirmation that all transactions have been completed in a satisfactory manner and any other relevant details such as the professional qualifications and/or business experience or occupation of the relevant individuals. References must be signed and addressed to the Administrator, must name the subject of the reference in full and give full contact details including telephone number of the reference provider.
5.4 Certified copy of the Trust Deed or other satisfactory evidence of the Trustee relationship.
5.5 Explanation as to general nature of the trust.
5.6 A copy of the remittance advice in respect of the subscription monies for this application.
In circumstances where the appropriate identification checks have already been undertaken by a regulated trust company in a country, which is subject to disciplinary action or sanctions for failure to comply with the anti-money laundering laws of that country, a letter of undertaking from that trust company in lieu of obtaining the full due diligence described above is acceptable.
For other types of entities, Foord Singapore will advise on the documents and information required.
3. Reliance on Intermediaries
A CMI may rely on intermediaries to perform certain CDD measures provided that the CMI is satisfied that the intermediary it intends to rely upon is subject to and supervised for compliance with AML/CFT requirements consistent with standards set by the FATF, and has adequate measures in place to comply with those requirements; the intermediary is not one on which CMIs have been specifically precluded by MAS from relying; and the intermediary is able and willing to provide, without delay, upon the CMIs request, any document obtained by the intermediary, which the CMI would be required or would want to obtain.
2.1 Actions to be taken to comply with AML/CFT identification and verification requirements
To ensure that accountable CMIs comply with their identification and verification requirements, clients should attach the documents below to completed application forms.
Foord Singapore reserves the right to request additional supporting documentation from clients where it deems necessary. Foord Singapore will only place investments once all the supporting documentation listed below has been supplied.