Regulatory Alerts2022-09-13
Added
Circular on Enhancing Anti-Money Laundering and Countering the Financing of Terrorism Controls in the VCC Sector
The Monetary Authority of Singapore issued this circular to address critical deficiencies in AML/CFT controls observed during thematic reviews of Variable Capital Companies and their appointed eligible financial institutions. The regulator mandates that VCCs exercise robust oversight over their EFIs, including formal appointments and defined escalation processes, while requiring comprehensive customer risk assessment frameworks that account for diverse geographic and structural risks. Additionally, VCCs are required to implement enhanced due diligence for high-risk customers, ensure proper documentation of source of wealth and funds, and maintain ongoing monitoring to detect elevated risks post-onboarding.