On 12 May 2021, The Monetary Authority of Singapore (MAS) issued a consultation paper to seek comments on draft Notices setting out the proposed Anti-Money Laundering and Countering the Financing of Terrorism requirements under both the proposed Branch framework and notified Foreign Related Corporations framework (the “FRC Framework”) to deal with cross border business arrangements.

This third consultation paper follows two papers released by the MAS earlier this year. On 15 March, MAS issued a consultation paper to seek feedback on its proposals to introduce an exemption notification framework for cross border business arrangements involving Foreign Officers of financial institutions in Singapore, exempting them from applicable business conduct requirements and representative notification framework when they serve Singapore customers. The consultation paper also sought feedback on proposed notification forms to be submitted to MAS at point of commencement of cross border arrangement and on an ongoing basis. The consultation also covered draft regulations and notices for both proposed Branch notification framework (the “Branch Framework”) and proposed exemption framework when dealing with cross border arrangements.

You can read the full consultation paper here.

Previously, in 2018, MAS released an initial consultation paper in which it sought feedback and discussed a proposal to move away from the current ex-ante approval approach of foreign related corporations conducting regulated activities on a cross border basis to one which is an ex-post notification framework.

Argus’ commentary on the consultation paper is available here.

Under the proposed Branch Framework and FRC Framework the Singapore financial institution is required to put in place policies and procedures to oversee the conduct of Foreign Offices and their representatives under the cross border business arrangement.

To this effect, MAS proposes to introduce the following notices:

  • Notice on Prevention of Money Laundering and Countering the Financing of Terrorism – Specified Holders of a Capital Markets Services Licence and Specified Exempt Persons in relation to Cross-Border Arrangements under the Securities and Futures (Exemption from Requirements) (Cross-Border Arrangements) (Foreign Related Corporations) Regulations
  • Notice on Prevention of Money Laundering and Countering the Financing of Terrorism – Licensed Financial Advisers and Specified Exempt Financial Advisers in relation to Cross-Border Arrangements under the Financial Advisers (Exemption from Requirements) (Cross-Border Arrangements) (Foreign Related Corporations) Regulations
  • Notice on Prevention of Money Laundering and Countering the Financing of Terrorism – Specified Holders of a Capital Markets Services Licence and Specified Exempt Persons in relation to Cross-Border Arrangements under the Securities and Futures (Exemption from Requirements) (Cross-Border Arrangements) (Foreign Offices) Regulations
  • Notice on Prevention of Money Laundering and Countering the Financing of Terrorism – Licensed Financial Advisers and Specified Exempt Financial Advisers in relation to Cross-Border Arrangements under the Financial Advisers (Exemption from Requirements) (Cross-Border Arrangements) (Foreign Offices) Regulations.

Please refer to the MAS consultation paper here.

How can Argus Assist?

At Argus Global, our team of consultants specialise in regulatory compliance for financial institutions. We can assist with the following:

  • Provide regulatory advice on Singapore regulations
  • Provide ongoing outsourced compliance support
  • Provide written policies and procedures to assist with adhering to Singapore regulatory requirements
  • Provide training on various regulatory requirements in Singapore.

Please reach out to us for an initial discussion at info@argusglobal.co.

 

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