MAS Consults on Revised Licensing Exemption Framework, New Notification and Reporting Requirements for Single Family Offices

On 31 July 2023, the Monetary Authority of Singapore (“MAS“) launched a public consultation on a revised framework to manage money laundering (“ML“) risks in Singapore’s Single Family Office (“SFO“) sector.

As a regulator, one of MAS’ functions is to ensure that Singapore financial institutions (“FIs“) address ML risks that their customers, including SFOs, may bring to Singapore. In light of the increasing number of SFOs being set up in Singapore, MAS therefore intends to take additional measures to strengthen surveillance and defence against ML risks in the SFO sector.

Currently, SFOs can either rely on existing class exemptions from licensing requirements under the Securities and Futures Act 2001 (“SFA“) or apply to MAS for case-by-case exemptions. The proposed revised framework will:

1. introduce a harmonised class exemption from licensing under the SFA that will eliminate case-by-case exemptions;
2. introduce new notification and annual reporting requirements to better monitor SFOs operating in Singapore; and
3. allow for a transitional period of six months.