Singapore’s AML regulations endorse a risk-based approach, necessitating heightened AML checks for customers assessed to present a high risk. Regulated entities are required to implement Enhanced Customer Due Diligence (EDD) measures for customers identified as having elevated money laundering or terrorist financing (ML/FT) risks.
EDD is also essential when interacting with Politically Exposed Persons (PEPs) or customers linked to jurisdictions with inadequate AML/CFT controls.
During the EDD process, regulated entities must verify the legitimacy of the customer’s income, source of funds and wealth, comprehend the purpose of transactions, and secure senior management’s approval before engaging with high-risk customers.
The following graphic illustrates the circumstances in which enhanced customer due diligence is required, along with the associated EDD obligations.
AML Singapore, part of the global consultancy firm NIYEAHMA Consultants LLP, offers extensive AML support tailored to regulated entities. The focus is on Singaporean regulations, providing services such as customizing AML policies, procedures, and training teams for effective implementation.