On 31 August 2023, the Monetary Authority of Singapore (“MAS“) issued the “Circular on ensuring effective detection of sanctions-related risks” (“Circular“). The Circular applies to financial institutions in Singapore, including banks, trust businesses, capital markets service providers, financial advisers, payment service providers, insurance companies and brokers (collectively referred to as “FIs“).
The Circular sets out additional guidance on measures that should be implemented by FIs to better detect and manage sanctions-related risks. These include the following.
(a) Establishing governance process for FIs’ Board and Senior Management (“BSM“) to exercise oversight of sanctions-related risks relating to FIs’ business
(b) Strengthening FIs’ capabilities to detect sanctions-related risks
MAS reminds FIs to review their anti-money laundering and countering the financing of terrorism (“AML/CFT“) frameworks and controls for any gaps with reference to the additional guidance in the Circular. FIs are expected to take steps to enhance their AML/CFT controls to address such gaps, if identified.
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