Singapore Warns Banks Against Illicit Incoming Funds
Thursday, September 08, 2011
By the means of an emailed note, the Monetary Authority of Singapore (MAS)
has warned private banks to beware of accepting illicit funds, as financial
assets could be attracted to Singapore due to developments elsewhere.
MAS was referring, for example, to such developments as the recent Swiss tax
agreements with Germany and the United Kingdom, and urged banks to look critically
at the risks involved in accepting asset transfers, particularly by means of
a close examination of the probity of their proposed new customers.
MAS reiterated that all banks in Singapore must undertake rigorous checks on
the legal and regulatory risk involved in accepting a new customer, and should,
before agreeing, be aware of any tax agreements that could be involved in the
reason for the transfer of funds.
It confirmed that, while it is committed to an open financial system, it does
not want Singapore to be used as a haven for illegitimate funds, or as a conduit
to disguise the flow of such funds. It issued its statement to the banks to
pre-empt any possible future problems, and thereby required all banks to raise
their guard in respect of new foreign investors. |
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