(July 8): Singapore’s housing regulator told property developers they should reserve enhanced anti-money laundering checks for higher-risk homebuyers, clarifying that most purchasers don’t require additional scrutiny such as source-of-wealth and source-of-funds checks.
Real estate firms should take a “risk-proportionate” approach to customer due diligence, the Urban Redevelopment Authority said in a circular issued Tuesday. Standard measures like identity verification and screening are fine for most buyers, while enhanced checks are required only for those purchasers assessed to pose a higher risk of money laundering, terrorism financing or proliferation financing.
The guidance is consistent with Singapore’s broader push to apply anti-money laundering rules in a risk-based manner. Last month, the Monetary Authority of Singapore introduced a revised regulatory framework for single family offices that streamlined licensing requirements while maintaining anti-money laundering obligations.
Higher-risk purchasers include foreign politically exposed persons and individuals from jurisdictions flagged by the Financial Action Task Force for countermeasures or inadequate anti-money laundering controls, according to Tuesday’s circular.
It also reminded developers they should keep enhanced checks proportionate and avoid requesting unnecessary or irrelevant documentation. For single-property purchases at prices that reflect market norms, fewer checks would generally be expected.
Money laundering prevention guidelines for developers were also revised in consultation with the Real Estate Developers’ Association of Singapore to provide more detailed guidance on customer due diligence.
See also: 14-unit strata office portfolio at High Street Centre for sale at $17.8 mil
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