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MAS's Circular on ML/TF Risks in Wealth Management

03 March 2023
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MAS's Circular on ML/TF Risks in Wealth Management

The Monetary Authority of Singapore (MAS) has published a circular on money laundering and terrorism financing risks in the wealth management sector.

The circular highlights that wealth management firms have inherently higher exposures to ML/TF risks due to factors including its client attributes, transaction size and complexity, and as a result, should:

  • Strengthen Board and Senior Management [BSM] oversight and risk and control functions;
  • Conduct added review and quality assurance testing regarding the identification of higher risk customers, source of wealth, and source of funds in high growth areas;
  • Continue to exercise vigilance over higher risk customers and transactions.

Wealth management firms with operations in Singapore should read the MAS circular and enact MAS’s recommendations.