Impact of Anti-money Laundering Measures on Ease of Opening Bank Accounts and Singapore's Reputation of Being Efficient
Prime Minister's OfficeSpeakers
Summary
This question concerns whether anti-money laundering measures cause delays in opening corporate bank accounts and the subsequent impact on Singapore's reputation for business efficiency. Mr Lim Biow Chuan questioned the effect of these protocols, to which Deputy Prime Minister Lawrence Wong replied that maintaining a trusted financial centre requires balancing a competitive environment with robust safeguards. He noted that Monetary Authority of Singapore requirements for customer due diligence are aligned with international standards and help banks manage risks while serving customers better. Deputy Prime Minister Lawrence Wong stated that undue delays are avoidable if applicants provide comprehensive information and respond to bank clarifications promptly. He concluded that these measures are vital for preventing bad actors from tarnishing Singapore’s reputation and ensuring the system remains secure for legitimate businesses.
Transcript
61 Mr Lim Biow Chuan asked the Prime Minister (a) whether the current anti-money laundering measures in Singapore will result in a delay in the opening of bank accounts for companies; and (b) if so, how will such delays affect Singapore's reputation as having an efficient business environment.
Mr Lawrence Wong (for the Prime Minister): Singapore's reputation as a trusted financial centre is what makes us an attractive place for investments and business. Therefore, our goal to provide a conducive and competitive environment for legitimate businesses must be matched with an equal resolve to prevent bad actors from abusing our system and tarnishing our reputation.
To mitigate the risk of money laundering and terrorism financing, MAS requires banks to conduct customer due diligence before an account can be opened. This includes understanding the purpose of the account and ascertaining the ultimate beneficial owners of companies. These requirements are not new and are aligned with practices in other reputable jurisdictions, as well as standards set by the Financial Action Task Force. They help banks gain a better understanding of the risk profile and needs of their customers, thereby enabling them to not just manage the business relationship in a risk-appropriate manner but also serve their customers better.
Banks have established customer engagement processes to obtain the information needed for account opening. Businesses applying for bank accounts can help in this process by providing sufficient information and timely clarifications to questions posed by banks. The due diligence process should not result in undue delays if banks receive sufficient information to properly understand the applicant and assess the risks posed.