The Monetary Authority of Singapore is visiting fund management companies in Singapore to assess their compliance with the changes derived from the Singaporean regulatory reforms of 2012, Laven Partners is warning.

Since the beginning of the summer the international law firm has heard of several MAS visits in the industry. In addition to covering general compliance aspects, the visits appear to focus in  particular on anti-money laundering policies and internal audits.

The changes in 2012 established a more rigid Singaporean regulatory structure which was more in line with regulatory practices around the world. To meet regulatory obligations, fund managers must have in place, among others, a compliance manual, a documented risk management framework and carry out regular internal audits. The MAS has also stepped up its anti-money-laundering requirements, in line with a consultation paper issued in July 2014. As part of a manager’s AML procedures and controls, the MAS now expects the implementation of a risk-based approach which includes effective customer due diligence measures depending on client risk categories. Further, one of the areas covered in the consultation was the definition of a client and how this pertains to fund managers.

Traditionally, the MAS has been of the view that a manager should “procure AML” on any fund investors, even if that manager’s contractual relationship exists with the fund only and the fund’s administrator carries out AML work on behalf of the fund. Laven took part in the consultation. These visits are in line with the more hands-on and  pro-active approach the MAS has taken in the last couple of years.