MAS consults on new rules to tackle money laundering and the financing of terrorism

• Account issuance services;
• Domestic money transfer services;
• Cross-border money transfer services; and
• Money-changing services.

PS Notice 02 applies to licensees which provide Digital Payment Token (DPT) services. MAS has taken the view that DPT services pose greater money-laundering/terrorism financing (ML/TF) risks. As such, DPT services should be regulated under a separate Notice.

PS Notice 02 continues to apply even where a licensee provides payment services other than DPT services. PS Notice 02 would cover the aspects relating to DPT services while PS Notice 01 will apply to those other services.

• Take steps to identify, assess and understand their ML/TF risks;
• Implement protocols to effectively manage and mitigate the ML/TF risks which they have identified;
• Evaluate and monitor their AML/CFT protocols; and
• Perform enhanced measures where greater ML/TF risks are identified.

• The licensee must treat the relevant payment transactions as a single transaction and aggregate their values for the purposes of considering whether customer due diligence ("CDD") measures should apply; and
• The licensee must also file a suspicious transaction report where it knows or suspects that any property may be connected to a criminal activity.

• obtain and hold required and accurate originator information and required beneficiary information on DPT transfers;
• submit that information to beneficiary DPT service providers and counterparts (if any); and
• make the information available on request to appropriate authorities.

Licensees that are the recipients of DPT transfers will also be required to obtain and hold required originator information and beneficiary information and make these available on request to appropriate authorities.

• identifying the customer;
• identifying the beneficial owner; and
• understanding and obtaining information on the purpose and intended nature of the business relationship.

• full name;
• unique identification number (eg NRIC or passport number);
• residential address (or registered business address);
• date of birth (or establishment, incorporation, or registration); and
• nationality (or place of incorporation or place of registration).

DPT service providers will be required to collect the same customer-specific information under PS Notice 01.

For the purposes of DPT services, MAS has sought feedback on whether it should also require DPT service providers to obtain other customer-specific information including:

• DPT sending/receiving addresses;
• receipts/documentation on original purchase of cryptocurrency from an exchange or similar intermediary;
• transaction details in relation to original purchase of DPTs;
• reasons for purchase of DPTs; and
• reasons for the current transaction.

Account issuance services, domestic money transfer services and cross-border money transfer services will be deemed as "low-risk" if they meet certain criteria.

If a particular payment service meets the low risk criteria, that payment service alone would be exempted from complying with AML/CFT measures relating to:

• customer due diligence;
• foreign currency exchange transactions;
• issuance of bearer negotiable instruments and cash payouts;
• agency arrangements; and
• wire transfers.