Published Date: 04 January 2019

Guidance to Capital Markets Intermediaries on Enhancing AML/CFT Frameworks and Controls

Sets out MAS’ supervisory expectations of sound AML/CFT practices for capital markets intermediaries (CMIs). The paper is based on inspections of CMIs, but the takeaways are applicable to other financial institutions, with the appropriate calibrations.
Applies to: Credit/Charge Card Issuer , Finance Company , Full Bank (Branch) , Full Bank (Locally Incorporated) , Merchant Bank (Branch) , Merchant Bank (Locally Incorporated) , Wholesale Bank (Branch) , Wholesale Bank (Locally Incorporated) , Financial Holding Company (Banking) , Exempt Trust Company , Licensed Trust Company , Exempt Person Providing Trust Services , Approved CIS Trustee , Benchmark Administrator/Submitter , Central Securities Depository , Clearing House , Corporate Finance Advisory , Credit Rating Agency , Dealing in Capital Markets Products , Exempt Capital Markets Services Entity , Exempt Corporate Finance Adviser Serving Accredited Investors , Exempt Futures Broker , Exempt OTC Derivatives Broker , Foreign Fund Manager , Holding Company of Exchange or Clearing House , Licensed Fund Management Company , Members of Public , Markets and Exchanges , OTC Counterparties , Money Broker , Product Financing , Providing Custodial Services , Registered Business Trust , Registered Fund Management Company , REIT Management , Securities Crowdfunding , Venture Capital Fund Management Company , Trade Repository , Exempt Financial Adviser , Exempt Financial Adviser Serving up to 30 Accredited Investors , Licensed Financial Adviser , Direct Insurer (Life) , Direct Insurer (General) , Direct Insurer (Composite) , Reinsurer (Life) , Reinsurer (General) , Reinsurer (Composite) , Captive Insurer , Lloyd's Asia Scheme , Authorised Reinsurer , Representative Office (Insurance) , Approved MAT Insurer , Financial Holding Company (Insurance) , Registered Insurance Broker , Exempt Insurance Broker , Approved Insurance Broker , Lloyd's Broker , Technology

MAS conducted a series of AML/CFT inspections that examined the effectiveness of the AML/CFT frameworks and controls of capital markets intermediaries“Capital markets intermediaries” used in the guidance paper includes capital markets services licensees and licensed trust companies. (“CMIs”). This guidance paper sets out MAS’ supervisory expectations of sound practices for CMIs. Further context can be found in the illustrative examples taken from MAS’ onsite findings and recommendations to the inspected CMIs.

While this paper is premised on the inspections of CMIs, the takeaways are applicable and relevant to other types of financial institutions (“FIs”), with the appropriate calibrations. All FIs should therefore incorporate learning points from this guidance paper. FIs should also note that the findings and examples highlighted in this paper are non-exhaustive, and FIs should continue to implement appropriate AML/CFT controls that are commensurate with the nature and complexity of its business.


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