PART 2 | CUSTOMER DUE DILIGENCE MEASURES |
| 3. [Deleted by S 461/2025 wef 01/07/2025] |
| General customer due diligence measures |
4.—(1) A responsible person must —| (a) | before carrying out any estate agency work for a client — enter into an agreement with the client which sets out the terms of the business relationship between the client and licensed estate agent; and | | (b) | in relation to the acquisition or disposition of each property by a client and before the client enters into any agreement for such acquisition or disposition —| (i) | determine the risks of the client engaging in money laundering, proliferation financing or terrorism financing, or any combination of these activities; and [S 461/2025 wef 01/07/2025] | | (ii) | document the determination and the conclusions reached. [S 461/2025 wef 01/07/2025] |
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(2) In addition to paragraph (1), a responsible person must, before a client enters into any agreement for the acquisition or disposition of property or when the responsible person has reason to suspect that there is a risk of money laundering, proliferation financing or terrorism financing —| (a) | obtain the client’s identifying information, document the information obtained and obtain the client’s written acknowledgment that the information obtained is accurate; | | (b) | verify the client’s identity using reliable and independent sources (such as the client’s identity card, passport or other document of identity issued by a government, for a client who is an individual); | | (c) | ascertain whether the client is acting on behalf of any other person, and if so —| (i) | obtain appropriate documentary evidence (such as an authorisation letter or power of attorney) to verify that the client is authorised to act on behalf of that other person; | | (ii) | if that other person is a natural person — identify and take reasonable measures to verify the identity of that other person, using reliable and independent sources; and | | (iii) | if that other person is an entity or a legal arrangement — perform the customer due diligence measures specified in regulation 5 in relation to that other person; [S 461/2025 wef 01/07/2025] |
| | (d) | where the client is an entity or a legal arrangement, perform the customer due diligence measures specified in regulation 5; and | | (e) | take reasonable measures to determine whether the client or any person on whose behalf the client is acting is a politically‑exposed person or a family member or close associate of a politically‑exposed person. [S 461/2025 wef 01/07/2025] |
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| Customer due diligence measures for client that is entity or legal arrangement or acting on behalf of entity or legal arrangement |
5.—(1) This regulation applies where a client is, or where a client is acting on behalf of, an entity or a legal arrangement.(2) A responsible person must identify and verify the identity of the entity or legal arrangement by obtaining the following information:| (a) | the name of the entity or legal arrangement; | | (b) | the legal form of the entity or legal arrangement; | | (c) | proof of the existence of the entity or legal arrangement; | | (d) | the instrument under which the entity or legal arrangement is constituted; | | (e) | in the case of an entity — the identity of each director of the entity, or the most senior executive or managing officer of the entity; | | (f) | the address of the registered office of the entity or legal arrangement and its principal place of business. |
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(3) Without affecting paragraph (2), a responsible person must —| (a) | understand the nature of the business of the entity or legal arrangement; and | | (b) | understand the ownership and control structure of the entity or legal arrangement. |
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(4) A responsible person must identify each beneficial owner of the entity or legal arrangement and take reasonable measures to verify the identity of each beneficial owner by obtaining the following information:| (a) | in the case of an entity —| (i) | the identifying information of each individual (if any) who ultimately has a controlling ownership interest in the entity, according to the law and instrument under which the entity is constituted; | | (ii) | if it is doubtful whether all or any of the individuals who ultimately have a controlling interest in the entity are its beneficial owners, or where no individual exerts control through ownership interests, the identifying information of each individual (if any) exercising control of the entity through other means; or | | (iii) | if no individual is identified under sub‑paragraphs (i) and (ii), the identifying information of each individual having a senior management position in the entity; |
| | (b) | in the case of a legal arrangement —| (i) | in any case where the legal arrangement is a trust, the identities of —| (A) | the settlor; | | (B) | each trustee; | | (C) | the protector (if any); | | (D) | each beneficiary or class of beneficiaries; and | | (E) | any other individual exercising ultimate effective control over the trust; or |
| | (ii) | in any case where the legal arrangement is not a trust, the identity of each person holding a position equivalent or similar to any position in sub‑paragraph (i). |
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| (5) A responsible person must take reasonable measures to determine whether each beneficial owner (if any) of the entity or legal arrangement is a politically‑exposed person, or a family member or close associate of a politically‑exposed person. |
| (6) Despite paragraphs (2), (3), (4) and (5), a responsible person need not perform the customer due diligence measures mentioned in those paragraphs if the responsible person verifies that the entity is an Organ of State, a Ministry or a department of the Government, or a statutory board. |
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| Enhanced customer due diligence measures |
6.—(1) In addition to regulations 4 and 5, where any of the circumstances mentioned in paragraph (2) exists, a responsible person must perform the enhanced customer due diligence measures mentioned in paragraph (3).(2) The circumstances in which the enhanced customer due diligence measures must be performed are any of the following:| (a) | the responsible person has reason to suspect that any estate agency work presents a higher risk of money laundering, proliferation financing or terrorism financing, including where the estate agency work involves complex or unusually large transactions or unusual patterns of transactions which have no apparent economic or visible lawful purpose; [S 461/2025 wef 01/07/2025] | | (b) | the relevant person is from or in any country or territory other than Singapore in relation to which the FATF has called, through a public statement, notice or directive on its official website at https://www.fatf‑gafi.org/, for countermeasures or enhanced customer due diligence measures; | | (c) | the relevant person is a foreign politically‑exposed person, or a family member or close associate of a foreign politically‑exposed person; [S 461/2025 wef 01/07/2025] | | (d) | the responsible person has reason to suspect that the relevant person is engaged in money laundering, proliferation financing or terrorism financing. [S 461/2025 wef 01/07/2025] |
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(3) The enhanced customer due diligence measures to be performed are as follows:| (a) | obtain the approval of a designated officer of the licensed estate agent concerned before establishing or continuing the licensed estate agent’s business relationship with the client; [S 461/2025 wef 01/07/2025] | | (b) | take reasonable measures to establish the source of wealth, and the source of funds, of the relevant person; | | (c) | take all reasonable measures as are appropriate to the risks of money laundering, proliferation financing or terrorism financing in relation to the client. [S 461/2025 wef 01/07/2025] |
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| (4) In this regulation, “relevant person” means a client, a beneficial owner of a client, a person on whose behalf a client is acting or a beneficial owner of that person. |
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| Customer due diligence measures for rental transactions |
7.—(1) If all of the following conditions are met, the customer due diligence measures specified in regulations 4(2)(c)(iii), (d) and (e) and 5 need not be performed:| (a) | the acquisition or disposition of property by the client is a rental transaction, other than a rental transaction for an HDB flat (or part thereof) wholly for residential use; [S 461/2025 wef 01/07/2025] | | (b) | the responsible person concerned has assessed the risk of money laundering, proliferation financing and terrorism financing in relation to both the client and transaction to be low, based on an analysis of risk factors identified by that responsible person. [S 461/2025 wef 01/07/2025] |
| (2) If the acquisition or disposition of property by the client is a rental transaction for an HDB flat (or part thereof) wholly for residential use, the customer due diligence measures specified in regulations 4, 5, 6, 10(1)(a) and (b) and 11(1) need not be performed in respect of the transaction. [S 461/2025 wef 01/07/2025] |
(3) In this regulation —| “HDB flat” means any flat, house or other building or housing accommodation sold under Part 4 or 4B of the Housing and Development Act 1959 which has been acquired by the present owner thereof, whether directly from the Housing and Development Board or otherwise; |
| “rental transaction”, in relation to any property, means a tenancy for the property where the term of the tenancy does not exceed 7 years. [S 461/2025 wef 01/07/2025] |
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| Performance of customer due diligence measures by third parties |
8.—(1) A licensed estate agent (other than a licensed estate agent specified by the Council under paragraph (2)) may be relied upon by a responsible person, who is another licensed estate agent or is a registered salesperson of another licensed estate agent, to perform the customer due diligence measures which the responsible person is required to perform under regulations 4 to 7, if the responsible person is satisfied that the firstmentioned licensed estate agent is willing and able to provide, without delay, on the responsible person’s request, any document acquired by that licensed estate agent as a result of the customer due diligence measures or enhanced customer due diligence measures (as the case may be) performed by that licensed estate agent.| (2) The Council may, in any practice circulars or guidelines issued by the Council, specify any licensed estate agent on whom a responsible person may not rely to perform customer due diligence measures. |
| (3) A responsible person must not rely on a licensed estate agent to conduct ongoing monitoring under regulation 9. |
| (4) Where a responsible person decides to rely on a licensed estate agent to carry out customer due diligence measures, the responsible person must obtain from the licensed estate agent without delay all documents acquired as a result of the customer due diligence measures performed by the licensed estate agent. |
(5) To avoid doubt, despite the reliance on a licensed estate agent to perform the customer due diligence measures that a responsible person is required to perform under regulations 4 to 7, the responsible person remains responsible for compliance with the obligations —| (a) | to perform customer due diligence measures; and | | (b) | where the responsible person is a licensed estate agent — to keep records in accordance with these Regulations. |
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9.—(1) Where a licensed estate agent has an ongoing business relationship with a client, a responsible person must perform ongoing monitoring in accordance with this regulation.(2) The responsible person must periodically review the information and documents obtained as a result of the customer due diligence measures under these Regulations to —| (a) | ascertain whether the transactions carried out by the client are consistent with the responsible person’s knowledge of the client; and | | (b) | identify suspicious transactions, including transactions or patterns of transactions that are inconsistent with the client’s profile. |
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(3) The responsible person must periodically review the adequacy of information and documents obtained as a result of the customer due diligence measures under these Regulations, particularly in cases where there is a higher risk of money laundering, proliferation financing or terrorism financing, to ensure that the information in respect of —| (a) | each client; | | (b) | a beneficial owner of each client; | | (c) | a person on whose behalf each client is acting; and | | (d) | a beneficial owner of each such person, |
[S 461/2025 wef 01/07/2025] |
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| Risk assessment, internal controls and compliance management arrangements |
10.—(1) A licensed estate agent must —| (a) | take appropriate steps to identify, assess and understand the money laundering, proliferation financing and terrorism financing risks in relation to the acquisition or disposition of each property by the client for which the licensed estate agent performed estate agency work; [S 461/2025 wef 01/07/2025] | | (b) | for the purpose of sub‑paragraph (a) —| (i) | document the risk assessments; | | (ii) | consider all relevant risk factors for the purpose of determining the appropriate measures to be applied to mitigate the risks identified; | | (iii) | keep the risk assessments up to date; and | | (iv) | provide the risk assessments to the Council upon request; |
| | (c) | develop and implement internal policies, procedures and controls to manage and effectively mitigate money laundering, proliferation financing and terrorism financing risks identified by the licensed estate agent or notified to the licensed estate agent by the Council; [S 461/2025 wef 01/07/2025] | | (d) | take enhanced measures to manage and mitigate the risk of money laundering, proliferation financing or terrorism financing where higher risks are identified; [S 461/2025 wef 01/07/2025] | | (e) | have an ongoing programme to train registered salespersons of the licensed estate agent on the internal policies, procedures and controls in sub‑paragraph (c); and | | (f) | monitor the implementation of the internal policies, procedures and controls in sub‑paragraph (c), and enhance them if necessary. |
(2) A licensed estate agent must develop and implement the following compliance management arrangements to manage and effectively mitigate money laundering, proliferation financing and terrorism financing risks:| (a) | the licensed estate agent must conduct internal checks and independent audits to ensure compliance with Part 4A of the Act and these Regulations; [S 461/2025 wef 31/12/2021] [S 461/2025 wef 01/07/2025] | | (b) | the licensed estate agent must monitor the implementation of the internal checks and independent audits conducted under sub‑paragraph (a); [S 461/2025 wef 01/07/2025] | | (c) | the licensed estate agent must take appropriate rectification measures to address any non‑compliance discovered under any internal checks and independent audits conducted under sub‑paragraph (a); [S 461/2025 wef 01/07/2025] | | (d) | the licensed estate agent must appoint a designated officer as its compliance officer to ensure compliance with Part 4A of the Act and these Regulations. [S 461/2025 wef 01/07/2025] |
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| Group policy for branches and subsidiaries |
10A.—(1) A licensed estate agent that has one or more branches or subsidiaries (whether located or incorporated in Singapore or in a foreign country or territory) must —| (a) | implement a group policy for preventing money laundering, proliferation financing and terrorism financing, and for managing and mitigating the risks of money laundering, proliferation financing and terrorism financing; and | | (b) | extend the group policy to all of those branches and subsidiaries. |
(2) The group policy mentioned in paragraph (1) must include the following:| (a) | the development and implementation of the risk assessments and internal controls mentioned in regulation 10(1) and the compliance management arrangements mentioned in regulation 10(2); | | (b) | subject to paragraph (3), measures to share information —| (i) | by the licensed estate agent’s branches and subsidiaries with the licensed estate agent; | | (ii) | by the licensed estate agent with the licensed estate agent’s branches and subsidiaries; and | | (iii) | among the licensed estate agent’s branches and subsidiaries, |
| for the purpose of conducting customer or counterparty due diligence or managing the risks of money laundering, proliferation financing and terrorism financing. |
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(3) The measures mentioned in paragraph (2)(b) —| (a) | must incorporate adequate safeguards, implemented by the licensed estate agent, to —| (i) | protect the confidentiality and use of any information that is shared; and | | (ii) | not tip off any person arising from the information that is shared (including to not share the information, where appropriate); |
| | (b) | except where sub-paragraph (a)(ii) applies, must require the licensed estate agent’s branches and subsidiaries to share with the licensed estate agent, and the licensed estate agent to share with its branches and subsidiaries, the following information relating to the clients of the licensed estate agent or its branches and subsidiaries (as the case may be) and any unrepresented counterparty in respect of an acquisition or disposition by any of those clients:| (i) | where the client or unrepresented counterparty is or is acting on behalf of an individual — the information obtained from performing the customer due diligence measures mentioned in regulation 4 or the counterparty due diligence measures mentioned in regulation 12B, as the case may be; | | (ii) | where the client or unrepresented counterparty is or is acting on behalf of an entity or a legal arrangement — the information obtained from performing the customer due diligence measures mentioned in regulation 5 or the counterparty due diligence measures mentioned in regulation 12C, as the case may be; | | (iii) | where the licensed estate agent or any of its branches or subsidiaries has performed enhanced customer due diligence measures mentioned in regulation 6(3) or enhanced counterparty due diligence measures mentioned in regulation 12D(2) — the information obtained from performing those enhanced customer due diligence measures or enhanced counterparty due diligence measures, as the case may be; | | (iv) | any information relating to measures taken under regulation 11(1) or 12G(1); | | (v) | any other information or analysis of any acquisition or disposition of property by the client or involving an unrepresented counterparty that appears unusual or is assessed to present a higher risk of money laundering, proliferation financing or terrorism financing; and |
| | (c) | may only apply to the extent permitted by the law of the foreign country or territory that the licensed estate agent’s branch or subsidiary (as the case may be) is in. |
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(4) Where the licensed estate agent has a branch or subsidiary in a foreign country or territory that has laws for the prevention of money laundering, proliferation financing or terrorism financing that differ from those of Singapore —| (a) | the licensed estate agent must require the management of that branch or subsidiary to apply the more stringent of the laws, to the extent that the law of the foreign country or territory permits; and | | (b) | where the management of that branch or subsidiary is unable to fully apply the more stringent law, the licensed estate agent must report this to the Council, and the licensed estate agent must, instead of sub-paragraph (a) —| (i) | perform such additional measures as are appropriate to manage the risk of money laundering, proliferation financing and terrorism financing; and | | (ii) | comply with such directions as may be given by the Council. |
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| (5) In this regulation, “subsidiary”, in relation to a licensed estate agent that is a company, has the meaning given by section 5 of the Companies Act 1967. [S 461/2025 wef 01/07/2025] |
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| Additional measures related to targeted financial sanctions, etc. |
11.—(1) A responsible person must, before a client enters into any agreement for the acquisition or disposition of property, take reasonable measures to assess whether the client, a beneficial owner of the client, any person on whose behalf the client is acting or a beneficial owner of that person, is —| (a) | a terrorist or terrorist entity under the Terrorism (Suppression of Financing) Act 2002; [S 461/2025 wef 31/12/2021] | | (b) | a designated person as defined in any regulations made under the United Nations Act 2001; or [S 461/2025 wef 31/12/2021] | | (c) | a person suspected of, or at risk of, facilitating money laundering, proliferation financing or terrorism financing, or any combination of these activities, who is specified by the Council in any written notice issued by the Council. [S 461/2025 wef 01/07/2025] |
(2) Subject to paragraph (5), where a registered salesperson of a licensed estate agent has reason to suspect that a client, a beneficial owner of a client, any person on whose behalf a client is acting or a beneficial owner of that person, is a person mentioned in paragraph (1)(a), (b) or (c) —| (a) | the registered salesperson must not carry out any transaction with or for the client; | | (b) | the registered salesperson must disclose the suspicion to the licensed estate agent; and | | (c) | the registered salesperson must disclose the suspicion, or the information on which the suspicion is based, by filing a suspicious transaction report. [S 461/2025 wef 01/07/2025] |
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(3) Subject to paragraph (5), where a licensed estate agent has reason to suspect that a client, a beneficial owner of a client, any person on whose behalf a client is acting or a beneficial owner of that person, is a person mentioned in paragraph (1)(a), (b) or (c), or where a registered salesperson of the licensed estate agent has disclosed such a suspicion to the licensed estate agent under paragraph (2)(b) —| (a) | the licensed estate agent must not carry out any transaction with or for the client; | | (b) | the licensed estate agent must not establish a business relationship with the client; | | (c) | the licensed estate agent must terminate any existing business relationship with the client; and | | (d) | unless the registered salesperson of the licensed estate agent has disclosed the suspicion or the information on which the suspicion is based in accordance with paragraph (2)(c), the licensed estate agent must disclose the suspicion, or the information on which the suspicion is based, by filing a suspicious transaction report. [S 461/2025 wef 01/07/2025] |
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| (4) Where a responsible person has reason to suspect that a client, a beneficial owner of a client, any person on whose behalf a client is acting or a beneficial owner of that person may be engaged in money laundering, proliferation financing or terrorism financing, the responsible person must disclose the suspicion, or the information on which the suspicion is based, by filing a suspicious transaction report. [S 461/2025 wef 01/07/2025] |
| (4A) Where a registered salesperson of a licensed estate agent discloses his or her suspicion or the information mentioned in paragraph (4) to a designated officer of the licensed estate agent, the licensed estate agent must file a suspicious transaction report as specified in paragraph (4) in respect of that suspicion, unless the registered salesperson has already done so. [S 461/2025 wef 01/07/2025] |
(5) Paragraphs (2)(a) and (3)(a), (b) and (c) do not apply to a licensed estate agent or registered salesperson (as the case may be) for the purposes of carrying out any estate agency work in relation to the acquisition or disposition of property that is the subject of —| (a) | an exemption under section 7(1) of the Terrorism (Suppression of Financing) Act 2002; or | | (b) | an exemption under any regulations made under section 2(1) of the United Nations Act 2001. [S 461/2025 wef 01/07/2025] |
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| Tipping‑off and inability to complete customer due diligence measures |
12.—(1) A responsible person required to perform or to complete any customer due diligence measure under these Regulations may choose not to perform the measure if —| (a) | there is reason to suspect that the client may be engaged in money laundering, proliferation financing or terrorism financing; and [S 461/2025 wef 01/07/2025] | | (b) | there is reason to believe that performing the customer due diligence measure will tip off the client or any other person. |
(2) Where, in relation to any client, a registered salesperson of a licensed estate agent is for any reason unable or chooses not to complete performing any customer due diligence measure required to be performed under these Regulations —| (a) | the registered salesperson must not carry out any transaction with or for the client; | | (b) | the registered salesperson must inform the licensed estate agent that the registered salesperson is unable or has chosen not to complete performing the customer due diligence measure; and | | (c) | the registered salesperson must determine whether to file a suspicious transaction report. [S 461/2025 wef 01/07/2025] |
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(3) Where, in relation to any client, both a licensed estate agent, and the registered salesperson (if any) authorised by the licensed estate agent to carry out estate agency work for the client, are for any reason unable or choose not to complete performing any customer due diligence measure required to be performed under these Regulations —| (a) | the licensed estate agent must not carry out any transaction with or for the client; | | (b) | the licensed estate agent must not establish a business relationship with the client; | | (c) | the licensed estate agent must terminate any existing business relationship with the client; and | | (d) | the licensed estate agent must determine whether to file a suspicious transaction report. [S 461/2025 wef 01/07/2025] |
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(4) For the purposes of paragraphs (2) and (3), a licensed estate agent or registered salesperson (as the case may be) is unable to complete a customer due diligence measure, if —| (a) | the licensed estate agent or registered salesperson (as the case may be) is unable to obtain, or to verify, any information required as part of the customer due diligence measure; or | | (b) | the licensed estate agent or registered salesperson (as the case may be) does not receive a satisfactory response to any inquiry in relation to any information required as part of the customer due diligence measure. |
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