MAS Sets Stringent Customer Due Diligence For Crypto Firms
The Monetary Authority of Singapore (MAS) has recently issued a new notice aimed at strengthening the regulatory framework surrounding digital token payment and cryptocurrency companies operating within the country. The notice, labeled as “Notice on Prevention of Money Laundering and Countering the Financing of Terrorism – Digital Payment Token Service Providers” (Notice FSG-N01), imposes enhanced requirements on these entities to conduct more rigorous customer due diligence measures.
The Monetary Authority of Singapore, MAS, issued a new notice requiring digital token payment/cryptocurrency companies to conduct stricter customer due diligence, including identifying and reporting "high-risk customers" they serve, and collecting and providing more information.…
— Wu Blockchain (@WuBlockchain) June 2, 2023
Enhanced Compliance Measures
Under the new regulations, digital token payment and cryptocurrency companies are now obligated to implement stricter procedures for identifying and reporting “high-risk customers” they serve. This entails collecting and providing more comprehensive information to ensure compliance with anti-money laundering (AML) and countering the financing of terrorism (CFT) standards. By implementing these measures, MAS aims to enhance the overall integrity of Singapore’s financial ecosystem and prevent illicit activities associated with cryptocurrencies.
The Notice FSG-N01 issued by MAS serves as an important reference for digital token payment and cryptocurrency companies, providing clear guidelines on their responsibilities and obligations. The notice outlines the specific requirements and expectations regarding customer due diligence, including the types of information that should be collected and reported.
MAS Regulations
MAS’ decision to tighten regulations on customer due diligence is part of a broader effort to combat money laundering and terrorist financing risks associated with digital token payment and cryptocurrency activities. By imposing stricter controls and demanding greater transparency, MAS aims to mitigate the potential misuse of cryptocurrencies for illicit purposes.
Market participants in the digital token payment and cryptocurrency sector are encouraged to familiarize themselves with the new notice and take the necessary steps to ensure compliance. Failure to adhere to the guidelines set forth by MAS may result in penalties or other regulatory actions.
With the issuance of Notice FSG-N01, the MAS reiterates its commitment to safeguarding the integrity of Singapore’s financial system and promoting a secure and transparent environment for digital token payment and cryptocurrency businesses. These measures will strengthen Singapore’s position as a leading global hub for innovative financial technologies while maintaining robust regulatory oversight.
