Key Supervisory and Regulatory Initiatives

INSPECTIONS AND SUPERVISORY REVIEWS

Inspections Relating to Anti-Money Laundering/Countering Financing of Terrorism
MAS has been regularly conducting inspections relating to anti-money laundering/countering financing of terrorism (AML/CFT) as part of the overall supervision of banks. In view of some significant breaches of AML/CFT regulations by banks in other financial centres in the last year, we decided to conduct another focused thematic sweep to review the adequacy of AML/CFT measures, policies and procedures adopted by banks and merchant banks in Singapore as well as their compliance with MAS regulations.

Since early 2004, over 30 banks and merchant banks have been inspected and the inspections are still ongoing. While the banks and merchant banks were generally in compliance with MAS’ Notice on Prevention of Money Laundering and Anti-Terrorism (Measures) Regulations, they should continue to enhance their customer due diligence process, including systems for the ongoing monitoring of customer transactions commensurate with their institution's risk profile and business strategies. All banks should also ensure regular AML/CFT training for staff.