MAS proposes anti-money laundering moves for single family offices
THE Monetary Authority of Singapore (MAS) is proposing moves to ensure that all single family offices (SFOs) come under anti-money laundering controls, by introducing specific requirements through a harmonised class exemption for the sector.
MAS on Monday (Jul 31) launched a public consultation on a revised framework that introduces the changes, and added that the move will beef up surveillance and defence against money laundering risks in Singapore’s SFO sector.
The proposed changes to the framework include the requirement that all SFOs be incorporated in Singapore, and that they report annually on total assets managed at the end of each calendar year.
Under the harmonised exemption criteria, SFOs are to notify MAS, and confirm compliance with the qualifying criteria under the class exemption when they commence operations in Singapore.
They will also be required to maintain a business relationship with an MAS-regulated financial institution, which will perform anti-money laundering checks on them.
These measures would enable MAS to better monitor SFOs operating in Singapore, and address money laundering risks in the sector, said the authority.
Currently, SFOs either rely on existing class exemptions from licensing requirements under the Securities and Futures Act, or apply to MAS for case-by-case exemptions, as they do not manage third-party assets.
In early July, then-Senior Minister Tharman Shanmugaratnam noted in a written parliamentary reply that MAS does not have data on all SFOs in Singapore, since they do not need to be licensed by the authority.
Those who have applied for or were awarded tax perks – and were thus required to submit their data to MAS – were reported to hire some 1,400 Singaporeans and permanent residents, of whom two-thirds were paid more than S$5,000 per month.
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