MAS unveils revised framework to strengthen anti-ML controls in single family offices 

There will be harmonised class exemption for SFOs who meet specific requirements.

The Monetary Authority of Singapore has proposed harmonising the exemption criteria for all single-family offices (SFOs) operating in Singapore in a bid against money launder (ML) risks.

The revised framework will introduce harmonised class exemption for SFOs who meet specific requirements, to ensure that all SFOs are subject to anti-money laundering controls, MAS said.

These requirements include being incorporated in Singapore; notifying MAS and confirming that the SFO is in compliance with the qualifying criteria under the class exemption when they commence operations in the Lion City; reporting annually on total assets managed after the end of each calendar year; and maintaining a business relationship with an MAS-regulated financial institution.

The FI will perform anti-money laundering checks on these SFOs. 

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These measures will allow MAS to better monitor SFOs operating in Singapore and address any ML risks in the sector, Singapore’s financial regulator said in a statement.

Currently, SFOs do not manage third-party assets, which means that they can either rely on existing class exemptions from licensing requirements under the Securities and Futures Act or apply to MAS for case-by-case exemptions. 

MAS has launched a public consultation on the framework on 31 July and invited interested parties to submit their comments here by 30 September 2023.