THE SCHEDULE
Rule 6(3)
Customer Due Diligence Measures
Part 1
INITIAL CDD MEASURES
Identification and verification of identity of borrowers
1.—(1)  A moneylender shall establish the identity of each borrower for the purposes of rule 6(1) and (2).
(2)  For the purposes of sub-paragraph (1), the moneylender shall obtain and record at least the following information of the borrower and his agent (if any):
(a)full name, including any alias;
(b)the identity card number, birth certificate number or passport number (in the case of an individual), or the incorporation number or registration number (in the case of a borrower that is a body corporate or unincorporate);
(c)either current residential address, or current address of principal place of business or registered office, as well as current telephone number;
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(d)the date of birth, incorporation or registration (as the case may be); and
(e)the nationality or place of incorporation or registration (as the case may be).
(3)  Where the borrower is an entity or a legal arrangement, the moneylender must also identify the legal form, constitution and powers of the entity or legal arrangement.
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(4)  Where the borrower is an entity or a legal arrangement, the moneylender must also establish the identities of all the connected parties of the borrower by obtaining and recording at least the following information of each connected party:
(a)full name, including any aliases;
(b)the identity card number, birth certificate number or passport number.
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(5)  [Deleted by S 522/2015 wef 01/09/2015]
(6)  The moneylender shall —
(a)verify the identities of the borrower and the borrower’s agent (if any), as well as the connected parties referred to in sub-paragraph (4), using reliable and independent documents, data and information;
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(b)verify the authority of the borrower’s agent by obtaining at least the appropriate documentary evidence of the appointment of the agent by the borrower to act on the borrower’s behalf, and the specimen signature of the agent; and
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(c)retain a copy of all documents, data and information used in establishing and verifying the matters referred to in sub-paragraphs (a) and (b).
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(7)  A moneylender need not comply with any requirement of this paragraph to the extent that he has carried out the same under rule 9 of the Moneylenders Rules 2009 (G.N. No. S 72/2009).
Identification and verification of identity of beneficial owners
2.—(1)  Subject to sub-paragraph (4), a moneylender must inquire if the borrower has any beneficial owner.
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(2)  Where the moneylender becomes aware pursuant to the inquiry or otherwise that the borrower has one or more beneficial owners, the moneylender must identify every beneficial owner and take reasonable measures to verify the identity of each beneficial owner, using reliable and independent documents, data and information.
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(3)  In the case of a borrower which is an entity or legal arrangement, the moneylender must take reasonable measures to understand the nature of the borrower’s business as well as the ownership and control structure of the borrower.
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(3A)  Where the borrower is an entity, the moneylender must identify and take reasonable measures to verify the identities of the beneficial owners in sub-paragraph (2) —
(a)by identifying the individuals (whether acting alone or together) who ultimately own the entity;
(b)to the extent that there is a doubt whether any individual ultimately owns the entity, or where no individual ultimately owns the entity, by identifying the individuals (if any, and whether acting alone or together) who exercise control over the entity through other means; and
(c)where no individual is identified under sub-paragraph (a) or (b), by identifying the individuals having executive authority in the entity.
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(3B)  Where the borrower is a legal arrangement, the moneylender must identify and take reasonable measures to verify the identities of the beneficial owners in sub-paragraph (2) —
(a)if the borrower is an express trust, by identifying the settlor, the trustees, the protector (if any), the beneficiaries or class of beneficiaries, and any other individual who exercises ultimate effective control over the trust (including through a chain of control or ownership); and
(b)if the borrower is any other legal arrangement, by identifying persons in equivalent or similar positions as those described in sub-paragraph (a).
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(4)  A moneylender need not inquire if there exists any beneficial owner in relation to a borrower where the borrower is —
(a)[Deleted by S 143/2019 wef 29/03/2019]
(b)[Deleted by S 143/2019 wef 29/03/2019]
(c)an entity listed on the Singapore Exchange;
(d)an entity listed on a stock exchange outside Singapore that is subject to —
(i)regulatory disclosure requirements; and
(ii)requirements, imposed through the rules of the stock exchange, any law or other enforceable means, for adequate transparency in respect of the entity’s beneficial owners;
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(e)a financial institution supervised by the Monetary Authority of Singapore;
(f)a financial institution incorporated or established outside Singapore that is subject to and supervised for compliance with requirements for the prevention of money laundering and the financing of terrorism consistent with standards set by the FATF; or
(g)an investment vehicle, the managers of which are financial institutions —
(i)supervised by the Monetary Authority of Singapore; or
(ii)incorporated or established outside Singapore, and subject to and supervised for compliance with requirements for the prevention of money laundering and the financing of terrorism consistent with standards set by the FATF,
unless the moneylender has doubts about the veracity of any information obtained from performing any CDD measure, or suspects that the investment vehicle or the relevant loan required by such investment vehicle is connected with money laundering or the financing of terrorism.
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(5)  For the purposes of sub-paragraph (4), a moneylender shall keep a record in writing of the basis for his determination that a borrower is of a type specified in that sub-paragraph.
Purpose of loan
3.  When processing an application for a loan, a moneylender must understand the purpose for the loan and, where appropriate, obtain from the borrower, information as to the purpose.
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Face-to-face verification
4.—(1)  A moneylender must not undertake any relevant loan without having face-to-face contact with the borrower or the agent of the borrower.
(2)  Sub-paragraph (1) does not apply if, and only if —
(a)the moneylender had previously performed initial CDD measures on the borrower when undertaking a relevant loan to the same borrower through such face-to-face contact;
(b)the moneylender has in place policies and procedures to address any risks of money laundering and terrorism financing associated with undertaking a loan without having such face-to-face contact; and
(c)the moneylender performs initial CDD measures on the borrower that are at least as stringent as those applied when undertaking a loan through such face-to-face contact.
(3)  In sub-paragraph (1), the reference to the “borrower”, where the borrower is a legal arrangement, is a reference to the trustee of the legal arrangement or, if the trustee is an entity, an officer of the trustee.
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5.  [Deleted by S 522/2015 wef 01/09/2015]
6.  [Deleted by S 522/2015 wef 01/09/2015]
7.  [Deleted by S 522/2015 wef 01/09/2015]
8.  [Deleted by S 522/2015 wef 01/09/2015]
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Part 2
ONGOING CDD MEASURES
1.  A moneylender must monitor, on an ongoing basis, every business relation of the moneylender.
2.  A moneylender must, during the course of a business relation with a borrower, scrutinise transactions undertaken by the borrower throughout the course of the business relation to ensure that the transactions are consistent with the moneylender’s knowledge of the borrower, the borrower’s business and risk profile and, where appropriate, the source of the borrower’s funds.
3.  A moneylender must ensure that all information obtained from performing initial and ongoing CDD measures is kept up to date and relevant through regular reviews, particularly in cases where there is a high risk of money laundering or terrorism financing.
4.  Where there are reasonable grounds to suspect that a loan account is being used in connection with any money laundering or terrorism financing activity, and the moneylender considers it appropriate to retain the borrower in question —
(a)the moneylender must substantiate the reasons for retaining the borrower and document those reasons;
(b)the business relation in question must be subject to commensurate measures to mitigate the risk of money laundering or terrorism financing, including performing ongoing CDD measures, and the measures referred to in rule 6E(2), at an increased frequency; and
(c)the moneylender must obtain the approval of the moneylender’s senior management to retain the business relation.
5.  For the purposes of performing the measures in this Part, a moneylender must put in place and implement adequate systems and processes, commensurate with the size and complexity of the business of the moneylender, in order to —
(a)monitor the business relations of the moneylender; and
(b)detect and report suspicious or complex transactions, unusually large transactions, or unusual patterns of transactions.
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