MAS highlights FATF Guidance for risk-based approach for securities sector and life insurance sector

26 February 2019

On 18 January 2019, the Monetary Authority of Singapore (“MAS”) highlighted the following Guidance published by the Financial Action Task Force (“FATF”):

  • FATF Guidance for a Risk-Based Approach for the Securities Sector
  • FATF Guidance for a Risk-Based Approach for the Life Insurance Sector

(together, “FATF Guidance”).

MAS advises financial institutions (“FIs”) to take reference from the FATF Guidance, where appropriate, when reviewing the effectiveness of their anti-money laundering and countering the financing of terrorism (AML/CFT) framework.

The FATF Guidance aims to support the implementation of the risk-based approach (“RBA”) by FIs in the securities sector and life insurance sector. FIs are required to identify and assess the money laundering/terrorist financing (“ML/TF”) risks of their own business, and to then develop mitigating controls proportionate to the risks identified and to the complexity, nature and size of the FI and its activities.

Non-exhaustive examples of the range of risk factors that may be relevant for the assessment of an FI’s ML/TF risks are also set out.

Reference materials

The following materials are available on the MAS website www.mas.gov.sg and FATF website www.fatf-gafi.org:

 

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