SIOC | Singapore Institute of Compliance

Financial Action Task Force (FATF)

The Financial Action Task Force or FATF is an inter-governmental policy making body
mandated to establish international standards
for combating money laundering and terrorism financing.

COUNTRIES

ASSOCIATE MEMBERS

OBSERVER MEMBERS

Established in

FATF has issued 40 recommendations and 7 special recommendations covering 3 key areas

Preventive Measures to Combat Money Laundering & Terrorism Financing

Adopting internationally accepted stringent measures to pro-actively combat against money laundering & terrorism financing.

Assessments for Compliance, Monitoring & Reviewing

Implementing policies and procedures in accordance to FATF recommendations. Ensuring compliance with effective ongoing monitoring and reviewing of the procedures.

Creating an Awareness of New and Emerging Threats

Creating an awareness by staying informed of trends and changing policies across jurisdictions. Respond to new and emerging threats that expose loopholes that bypass existing security measures.

CUSTOMER DUE DILIGENCE

Onboarding

A proper structured onboarding covering comprehensive KYC with adequate personal particular and identity records, determination of any UBOs (Ultimate Beneficiary Owners) and PEPs (Politically Exposed Persons). Proper record-keeping the KYC process is crucial.

KYC - Know Your Client

Establishing the identities and residential addresses of officers and members. Relevant supporting documents to be collected and verified. Any KYC form to allow for adequate information in assessing risk classification. Appropriate documents to be sighted or certified by Notary or any authorized person.

Risk-Based Approach

KYC approach needs to be classified into 3 classes of risk. High-Risk will require enhanced due diligence with very close monitoring. Medium-Risk will require normal due diligence and monitoring. Low-Risk will require basic due diligence with simplified monitoring.

Ongoing

Ongoing periodic due diligence to ensure latest and accurate information of client’s KYC particulars for CDD (Compliance and Due Diligence). The periodic frequency of of such due diligence checks to be determined by the risk-classification of each client.

Suspicious Activity Reporting

All staff to be trained and equipped to detect, escalate and report any suspicious activities or transactions observed in the course of the operations. Organisations to have clear hierarchy for the investigating, reporting and filing such suspicious activities. Crucial not to tip-off the client.

Periodic KYC Review

Frequency of review to be decided based on the risk-profile and nature of business of client. Such reviews will include re-verification of each individual or entities personal and corporate particulars. All CDD data especially passport renewals and corporate structures to be kept up-to-date.

Compliance Auditing

Each organization to formalize their internal policies and procedures in the form of a written Internal Policies and Procedures Controls (IPPC) document. This document will include the basic regulatory guidelines plus any additional procedures suitable for that organization.

Organizational Restructuring

Organisations shall establish and maintain risk-sensitive approach to compliance reviews and audits with reference to IPPC. Separation of functional roles between operational and compliance teams. Restructuring management structure to reflect these role separations.

Statutory Compliance Audits

Statutory agencies to conduct periodic audits to review and grade adherence to regulatory guidelines. This formal IPPC document shall serve as the basis of any compliance audit reviews and adherence to regulations. Reports of such audits to serve as minimum criteria for continuation of any licensing.

What is Money Laundering and Terrorism Financing?

Money laundering is the act of concealing the transformation of profits from illegal activities and corruption into ostensibly "legitimate" assets.
Terrorism financing refers to activities that provide financing or financial support to individual terrorists or non-state actors.

About SIOC

We were set up in 2015 to promote the adoption of FATF recommendations with regards to compliance to Anti-Money Laundering measures & countering Financing of Terrorism. We provide the following:

Preparation and implementation of Internal Policies, Procedure and Controls
Internal and External Compliance Audit Reviews
Compliance support and background checks
Compliance training for Professional Firms and Trainers

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