Issue Date: 6 Sep 2011

Guidelines for Financial Institutions to Safeguard the Integrity of Singapore's Financial System

       These Guidelines reiterate Singapore's commitment to safeguard Singapore's financial system from being used as a haven to harbour illegitimate funds or as a conduit to disguise the flow of such funds.

2     While MAS is committed to maintaining an open financial system, it will not tolerate the use of the financial system to conduct criminal and illegitimate activities.

3     Financial institutions have a key role in preserving the integrity of the financial system. They should guard against the use of their operations to facilitate any illegitimate activity. Financial institutions must continuously assess the legal, regulatory and reputational risks associated with their business. They should be alert to agreements between countries to resolve tax issues and undertake a more critical review of any asset transfers into Singapore from such countries. Financial institutions should carefully evaluate the risks and establish the bona fides of customers before accepting such assets. If they have reason to suspect that the assets are illegitimate, they should file Suspicious Transaction Reports and where appropriate, discontinue the business relationship.