PART 7 INTERNATIONAL OBLIGATIONS AND PREVENTION
OF MONEY LAUNDERING, TERRORISM FINANCING
AND OTHER OFFENCES |
Division 1 — Directions and regulations to implement
international obligations and prevent
money laundering and terrorism |
| Directions and regulations to discharge Government’s international obligations |
83.—(1) MAS may, from time to time —| (a) | issue such directions concerning any VCC or class of VCCs; and | | (b) | make such regulations concerning any VCC or class of VCCs or relating to the activities of any VCC or class of VCCs, |
| as MAS considers necessary in order to discharge or facilitate the discharge of any obligation binding on Singapore by virtue of a decision of the Security Council of the United Nations. |
| (2) A VCC to which a direction is issued under subsection (1)(a) or that is bound by any regulations made under subsection (1)(b) must comply with the direction or regulations despite any other duty imposed on the VCC by any rule of law, written law or contract. |
| (3) In carrying out any act in compliance with any direction issued or regulations made under subsection (1), a VCC is not considered as being in breach of any such rule of law, written law or contract. |
| (4) A VCC must not disclose any direction issued under subsection (1)(a) if MAS notifies the VCC that MAS is of the opinion that the disclosure of the direction is against the public interest. |
(5) A VCC that —| (a) | contravenes any direction issued to it under subsection (1)(a); | | (b) | contravenes any regulations made under subsection (1)(b); or | | (c) | discloses a direction issued to it in contravention of subsection (4), |
| shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1 million. |
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| (6) Any regulation under subsection (1)(b) may make provision for or in relation to a matter by applying, adopting or incorporating by reference (with or without modification) any regulation made under section 192 of the FSMA 2022 for the purposes of section 15 of that Act or a part of any such regulation, as in force at a particular time or from time to time, which relates to the same matter. [Act 18 of 2022 wef 28/04/2023] |
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| Requirements for prevention of money laundering and terrorism financing |
84.—(1) MAS may, from time to time, issue such directions or make such regulations concerning any VCC or class of VCCs as MAS considers necessary for the prevention of money laundering or for the prevention of the financing of terrorism.(2) In particular, the directions and regulations may provide for —| (a) | customer due diligence measures to be conducted by VCCs to prevent money laundering and the financing of terrorism; and | | (b) | the records to be kept for that purpose. |
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(3) A VCC must —| (a) | conduct such customer due diligence measures as may be specified by the directions mentioned in subsection (2) that are issued to it, or as may be prescribed by the regulations mentioned in that subsection that are applicable to it; and | | (b) | maintain records on transactions and information obtained through the conduct of those measures for such period and in such manner as may be specified by the directions mentioned in subsection (2) that are issued to it, or as may be prescribed by the regulations mentioned in that subsection that are applicable to it. |
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(4) A VCC that contravenes —| (a) | any direction issued to it under subsection (1); | | (b) | any regulation under subsection (1); or | | (c) | subsection (3), |
| shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1 million and, in the case of a continuing offence, to a further fine of $100,000 for every day or part of a day during which the offence continues after conviction. |
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| (5) Any regulation under subsection (1) may make provision for or in relation to a matter by applying, adopting or incorporating by reference (with or without modification) any regulation made under section 192 of the FSMA 2022 for the purposes of section 16 of that Act or any part of any such regulation, as in force at a particular time or from time to time, which relates to the same matter. [Act 18 of 2022 wef 28/04/2023] |
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| Inspection of VCCs for compliance with directions and regulations |
85.—(1) MAS may, from time to time, inspect under conditions of secrecy the books of —| (a) | a VCC; or | | (b) | any subsidiary, branch, agency or office outside Singapore of a VCC, |
| for the purpose of determining the extent of compliance by the VCC with the directions issued and the regulations made under sections 83 and 84. |
| (2) MAS may appoint any person, including an auditor (not being an auditor of the VCC), to carry out an inspection under this section. |
| (3) If the inspection is carried out on the ground that MAS has reason to believe that the VCC has contravened or is contravening any such direction or regulation, and if MAS so directs, then the VCC is liable to pay for the remuneration and expenses of any person appointed under subsection (2) for the inspection. |
| (4) MAS may recover from the VCC the remuneration and expenses mentioned in subsection (3) as a civil debt due to MAS. |
| (5) MAS may, in its discretion, waive the payment of all or any part of the remuneration and expenses mentioned in subsection (3). |
| (6) Where, in the course of an inspection under subsection (1), MAS obtains any protected information as defined in section 17(1) of the FSMA 2022, and that information is not necessary for taking any action regarding non‑compliance with any direction issued or regulation made under section 83 or 84, then MAS must treat that information as secret. [Act 18 of 2022 wef 28/04/2023] |
(7) Subsection (6) does not prevent the transmission by MAS under —| (a) | section 172(1) of the FSMA 2022 as applied by subsection (11); or [Act 18 of 2022 wef 28/04/2023] | | (b) | section 20(1), 22(1) or 25 of the FSMA 2022 as applied by section 88, 89 or 90, as the case may be, |
| of any information to any authority mentioned in the applicable provision. |
[Act 18 of 2022 wef 28/04/2023] |
| (8) Section 170 of the FSMA 2022 applies for the purpose of an inspection under subsection (1) as it applies for the purpose of an inspection under section 169(1) of that Act, subject to the necessary modifications and to subsection (9). [Act 18 of 2022 wef 28/04/2023] |
| (9) In this section and section 170 of the FSMA 2022 as applied by subsection (8), “book” has the meaning given by section 17(1) of the FSMA 2022. [Act 18 of 2022 wef 28/04/2023] |
| (10) Section 171 of the FSMA 2022 applies with the necessary modifications in relation to a written report produced by MAS in respect of a VCC following an inspection under subsection (1), as it applies in relation to a written report mentioned in that section. [Act 18 of 2022 wef 28/04/2023] |
(11) Section 172 of the FSMA 2022 applies in relation to information obtained from an inspection under subsection (1) as it applies in relation to information obtained from an inspection under section 169(1) of that Act, subject to the necessary modifications and the following further modifications:| (a) | the reference in section 172(1) of the FSMA 2022 to a corresponding authority as defined in section 17(1) of that Act, is to a corresponding authority as defined in section 86(1); [Act 18 of 2022 wef 28/04/2023] | | (b) | the reference in section 172(1) of the FSMA 2022 to any AML/CFT requirement as defined in section 17(1) of that Act, is to any AML/CFT requirement as defined in section 86(1); [Act 18 of 2022 wef 28/04/2023] | | (c) | the reference in section 172(2) of the FSMA 2022 to any prescribed written law as defined in section 17(1) of that Act or any requirement imposed under any such written law, is to this Act or any requirement imposed under this Act. [Act 18 of 2022 wef 28/04/2023] |
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Division 2 — Assistance to foreign authorities and
domestic authorities |
| Interpretation of this Division |
86.—(1) In this Division —| “AML/CFT authority”, “supervision” and “supervisory action” have the meanings given by section 17 of the FSMA 2022, except that a reference to a foreign financial institution in the definitions of those terms in that section is to a foreign financial institution as defined in this subsection; [Act 18 of 2022 wef 28/04/2023] |
| “AML/CFT requirement”, “applicable offence”, “domestic authority”, “employee”, “enforcement action”, “foreign country”, “information”, “investigation” and “public authority”, have the meanings given by section 17 of the FSMA 2022; [Act 18 of 2022 wef 28/04/2023] |
“corresponding authority” means a public authority of a foreign country that exercises a function that corresponds to a regulatory function of —| (a) | ACRA under this Act; | | (b) | MAS under this Part; or | | (c) | MAS under a prescribed written law as defined in section 17 of the FSMA 2022; [Act 18 of 2022 wef 28/04/2023] |
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“director”, in relation to a VCC, includes —| (a) | any person, by whatever name described, occupying the position of a director of the VCC; | | (b) | a person in accordance with whose directions or instructions the directors of the VCC are accustomed to act; and | | (c) | an alternate director, or a substitute director, of the VCC; |
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“executive officer”, in relation to a VCC, means any person, by whatever name described, who —| (a) | is in the direct employment of, or acting for or by arrangement with, the VCC; and | | (b) | is concerned with or takes part in the management of the VCC on a day‑to‑day basis; |
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| “foreign financial institution” has the meaning given by section 17 of the FSMA 2022, except that the reference in the definition of that term in that section to a corresponding authority is to a corresponding authority as defined in this subsection; [Act 18 of 2022 wef 28/04/2023] |
| “office holder”, in relation to a VCC, means any person acting as the liquidator or provisional liquidator of the VCC or any of its sub‑funds (if applicable), the receiver or the receiver and manager of the property of the VCC or any of its sub‑funds (if applicable), or acting in an equivalent capacity in relation to the VCC or any of its sub-funds (if applicable). |
(2) In this Division, an AML/CFT authority exercises consolidated supervision authority over a VCC if —| (a) | the VCC is a subsidiary of a foreign financial institution established or incorporated in the foreign country of the AML/CFT authority; and | | (b) | the AML/CFT authority carries out consolidated supervision of the foreign financial institution, and its subsidiaries, branches, agencies and offices outside that foreign country, for compliance with the AML/CFT requirements of that foreign country that are applicable to the foreign financial institution. |
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| (3) To avoid doubt, the definition of “agent” in section 17 of the FSMA 2022 does not apply for the purposes of this Division. [Act 18 of 2022 wef 28/04/2023] |
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87. The purposes of this Division are —| (a) | to enable MAS to provide information in relation to a VCC to an AML/CFT authority in connection with the AML/CFT authority’s supervision of foreign financial institutions carrying on any financial activities in that country for compliance with the AML/CFT requirements of that country applicable to those institutions, including the taking of supervisory action against them for a contravention of those requirements; | | (b) | to enable MAS to provide information in relation to a VCC to a domestic authority in connection with —| (i) | an investigation into the commission or an alleged commission of an applicable offence by a person; | | (ii) | an enforcement action against a person for the commission or an alleged commission of an applicable offence; or | | (iii) | a supervisory action against a person regulated by the domestic authority for a contravention of an applicable AML/CFT requirement of Singapore; and |
| | (c) | to enable an AML/CFT authority to carry out an inspection in Singapore of a VCC over which the AML/CFT authority exercises consolidated supervision authority. |
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| Assistance to AML/CFT authorities |
88. Subdivision (2) of Division 2 of Part 4 of the FSMA 2022 applies in relation to a request to MAS from an AML/CFT authority for assistance in relation to a VCC as it applies in relation to a request to MAS from an AML/CFT authority (as defined in section 17 of that Act) for assistance in that subdivision, subject to the necessary modifications and the following further modifications:| (a) | [Deleted by Act 18 of 2022 wef 28/04/2023] | | (b) | the reference in section 19(1)(g)(ii) of the FSMA 2022 to the identity of the financial institution is to the identity of the VCC; [Act 18 of 2022 wef 28/04/2023] | | (c) | the reference in section 19(3)(a) of the FSMA 2022 to any direction issued under section 15 or 16 of that Act, or to any regulations made under section 192 of that Act for the purposes of section 15 or 16 of that Act (as the case may be), is to a direction or regulation issued or made under section 83 or 84, as the case may be; [Act 18 of 2022 wef 28/04/2023] | | (d) | a reference in section 20 of the FSMA 2022 to any prescribed written law or any requirement imposed under any such written law is to any prescribed written law as defined in section 17(1) of that Act or this Act, or any requirement imposed under such prescribed written law or this Act; [Act 18 of 2022 wef 28/04/2023] | | (e) | the reference in section 20(2)(a) of the FSMA 2022 to a financial institution is to the VCC; [Act 18 of 2022 wef 28/04/2023] | | (f) | the reference in section 20(2)(a) of the FSMA 2022 to a chief executive, a director, an executive officer, an employee, an agent or an office holder of a financial institution, is to a director, an executive officer, the manager, an employee, an agent or an office holder of the VCC, the custodian of the VCC (being a non‑umbrella VCC) or the custodian of a sub‑fund of the VCC. [Act 18 of 2022 wef 28/04/2023] |
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| Assistance to domestic authorities |
89. Subdivision (3) of Division 2 of Part 4 of the FSMA 2022 applies in relation to a request to MAS from a domestic authority for assistance in relation to a VCC as it applies in relation to a request to MAS from a domestic authority for assistance in that subdivision, subject to the necessary modifications and the following further modifications:| (a) | [Deleted by Act 18 of 2022 wef 28/04/2023] | | (b) | a reference in section 22 of the FSMA 2022 to any prescribed written law or any requirement imposed under any such written law is to any prescribed written law as defined in section 17(1) of that Act or this Act, or any requirement imposed under such prescribed written law or this Act; [Act 18 of 2022 wef 28/04/2023] | | (c) | the reference in section 22(2) of the FSMA 2022 to a financial institution is to the VCC; [Act 18 of 2022 wef 28/04/2023] | | (d) | the reference in section 22(2) of the FSMA 2022 to a chief executive, a director, an executive officer, an employee, an agent or an office holder of a financial institution, is to a director, an executive officer, the manager, an employee, an agent or an office holder of the VCC, the custodian of the VCC (being a non‑umbrella VCC) or the custodian of the sub‑fund of a VCC. [Act 18 of 2022 wef 28/04/2023] |
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| Other provisions applicable to sections 88 and 89 |
| 90.—(1) Subdivision (4) of Division 2 of Part 4 of the FSMA 2022 applies for the purposes of sections 88 and 89, subject to the necessary modifications and subsection (2). [Act 18 of 2022 wef 28/04/2023] | (2) For the purpose of subsection (1), a reference in section 25 of the FSMA 2022 to any prescribed written law or any requirement imposed under any such written law is to any prescribed written law as defined in section 17(1) of the FSMA 2022 or this Act, or any requirement imposed under such prescribed written law or this Act. [Act 18 of 2022 wef 28/04/2023] |
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| Inspection by AML/CFT authority |
91.—(1) Sections 26 and 27 of the FSMA 2022 apply for the purpose of an inspection in Singapore by an AML/CFT authority of a VCC over which it exercises consolidated supervision authority, as they apply for the purpose of an inspection in Singapore by an AML/CFT authority (as defined in section 17 of the FSMA 2022) of a financial institution over which it exercises consolidated supervision authority, subject to the necessary modifications and the following further modifications:| (a) | section 26(5) of the FSMA 2022 is omitted; [Act 18 of 2022 wef 28/04/2023] | | (b) | the reference in section 27(3) of the FSMA 2022 to any prescribed written law or any requirement imposed under any such written law, is omitted; [Act 18 of 2022 wef 28/04/2023] | | (c) | a reference in sections 26 and 27 of the FSMA 2022 to a financial institution is to the VCC. [Act 18 of 2022 wef 28/04/2023] |
| (2) Section 28 of the FSMA 2022 applies in relation to a report produced in respect of an inspection carried out pursuant to section 26 of the FSMA 2022 as applied by subsection (1), as it applies in relation to a report produced in respect of an inspection carried out pursuant to section 26 of the FSMA 2022, subject to the necessary modifications and with each reference to a financial institution replaced with a reference to the VCC concerned. [Act 18 of 2022 wef 28/04/2023] |
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| Division 3 — Miscellaneous provisions |
| Corporate offenders and unincorporated associations |
| 92.—(1) Section 174 (except subsection (7)) and section 175 (except subsection (7)) of the FSMA 2022 apply in relation to an offence committed under this Part as they apply in relation to an offence committed under the FSMA 2022. [Act 18 of 2022 wef 28/04/2023] | (2) MAS may make regulations to provide for the application of any provision of sections 174 and 175 of the FSMA 2022 (with such modifications as MAS considers appropriate) to any body corporate or unincorporated association formed or recognised under the law of a territory outside Singapore. [Act 18 of 2022 wef 28/04/2023] |
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93.—(1) MAS may compound any offence under this Part that is prescribed as a compoundable offence by collecting from a person reasonably suspected of having committed the offence a sum of money not exceeding one half of the amount of the maximum fine prescribed for that offence.(2) MAS may compound any offence under this Part (including an offence under a provision that has been repealed) which —| (a) | was compoundable under this section at the time the offence was committed; but | | (b) | has ceased to be so compoundable, |
| by collecting from a person reasonably suspected of having committed the offence a sum of money not exceeding one half of the amount of the maximum fine prescribed for that offence at the time it was committed. |
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| (3) On payment of the sum of money mentioned in subsection (1) or (2), no further proceedings are to be taken against that person in respect of the offence. |
| (4) MAS may make regulations to prescribe the offences which may be compounded. |
| (5) All sums collected by MAS under subsection (1) or (2) must be paid into the Consolidated Fund. |
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| MAS officers, etc., treated as public officers |
| 94. The directors (including the managing director) and the officers and employees of MAS are, in relation to their administration, collection and enforcement of payment of any moneys to be paid into the Consolidated Fund under section 93(5), treated as public officers for the purposes of the Financial Procedure Act 1966, and section 20 of that Act applies to such persons despite the fact that they are not or were not in the employment of the Government. |
| Power to exempt and to make regulations for further modifications |
95.—(1) MAS may make regulations exempting any person or class of persons from all or any provisions of this Part and any regulations made under this Part, subject to such conditions or restrictions as may be prescribed.(2) MAS may, on the application of any person, by written notice exempt the person from —| (a) | any regulations made under section 83 or 84; and | | (b) | all or any of the requirements specified in any direction made by MAS under this Part, |
| subject to such conditions or restrictions as MAS may specify by written notice. |
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| (3) MAS may at any time, by written notice to a person, add to, vary or revoke any condition or restriction imposed on the person under subsection (2). |
| (4) It is not necessary to publish any exemption granted under subsection (2) in the Gazette. |
| (5) [Deleted by Act 18 of 2022 wef 28/04/2023] |
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