Regulatory Alerts2025-01-13
Added · Updated
Guidelines to Notice SFA02-N05 on Prevention of Money Laundering and Countering the Financing of Terrorism for Approved Exchanges and Recognised Market Operators
These Guidelines provide guidance to Approved Exchanges and Recognised Market Operators on requirements in MAS Notice SFA02-N05 regarding the prevention of money laundering and countering the financing of terrorism. The document clarifies definitions for terms such as business relations, connected parties, and trade-related transactions, and outlines the three lines of defence framework for AML/CFT compliance. It mandates that entities conduct enterprise-wide ML/TF risk assessments approved by senior management and apply risk-based approaches to customer due diligence, including simplified and enhanced measures. The Guidelines also specify obligations for suspicious transaction reporting, internal policies, and reliance on third parties.