MAS recently conducted a series of anti-money laundering and countering the financing of terrorism (AML/CFT) inspections across a range of financial institutions (FIs). This information paper sets out MAS’ supervisory expectations and good practices in the following areas for effective AML/CFT frameworks and controls that FIs should benchmark themselves against.
- Assessment of customer risk
- Identification of material red flags
- Source of Wealth (SOW) establishment
- Risk mitigation measures
- Holistic monitoring of accounts
FIs should conduct a gap analysis, taking into account the risk profile of their business activities and customers. Where FIs identify gaps in their AML/CFT frameworks and controls, specific remediation/enhancement measures should be implemented in a timely manner. Senior management should exercise close oversight of the gap assessment and ensure effective implementation of follow-up actions, as appropriate.
For the full details, please refer to the MAS website https://www.mas.gov.sg/regulation/guidance/amlcft-supervisory-expectations-from-recent-inspections
Disclaimer: The information, views or opinions expressed are provided for general information and should not be relied upon as legal or professional advice.