§ 16 — Customer due diligence

16.—(1) Subject to subsections (3) and (4), a regulated dealer must perform the prescribed customer due diligence measures in any of the following circumstances:(a)

before entering into a designated transaction;

(b)

where the regulated dealer has reason to suspect money laundering, terrorism financing or the financing of proliferation of weapons of mass destruction;[Act 6 of 2024 wef 01/05/2024]

(c)

where the regulated dealer has reason to doubt the veracity or adequacy of information obtained from earlier customer due diligence measures;

(d)

under circumstances prescribed for the purposes of this section.

(2) Different customer due diligence measures may be prescribed in relation to different regulated dealers or classes of regulated dealers, different types of designated transactions or different customers or classes of customers.

(3) A regulated dealer must not proceed with any designated transaction if there exists any circumstances that are prescribed.

(4) Unless subsection (3) applies, a regulated dealer may choose not to perform or to complete any measure that the regulated dealer is required by this section to perform if —(a)

the regulated dealer has reason to suspect that the designated transaction relates to money laundering, terrorism financing or the financing of proliferation of weapons of mass destruction; and[Act 6 of 2024 wef 01/05/2024]

(b)

the regulated dealer has reason to believe that performing the measure will tip off the customer or any other person.

(5) Where, in relation to any customer, a regulated dealer is for any reason unable or chooses not to complete performing any measure required to be performed under this section, the regulated dealer must —(a)

decline to enter into any transaction with the customer;

(b)

terminate any transaction entered into with the customer;

(c)

determine whether to make a disclosure under section 45 of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 or section 8 or 10 of the Terrorism (Suppression of Financing) Act 2002;

(d)

record the basis of the regulated dealer’s determination under paragraph (c); and

(e)

carry out any other measures that may be prescribed.

(6) A regulated dealer who fails to comply with subsection (1), (3) or (5) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000.

—(1) Subject to subsections (3) and (4), a regulated dealer must perform the prescribed customer due diligence measures in any of the following circumstances:(a)

before entering into a designated transaction;

(b)

where the regulated dealer has reason to suspect money laundering, terrorism financing or the financing of proliferation of weapons of mass destruction;[Act 6 of 2024 wef 01/05/2024]

(c)

where the regulated dealer has reason to doubt the veracity or adequacy of information obtained from earlier customer due diligence measures;

(d)

under circumstances prescribed for the purposes of this section.

(2) Different customer due diligence measures may be prescribed in relation to different regulated dealers or classes of regulated dealers, different types of designated transactions or different customers or classes of customers.

(3) A regulated dealer must not proceed with any designated transaction if there exists any circumstances that are prescribed.

(4) Unless subsection (3) applies, a regulated dealer may choose not to perform or to complete any measure that the regulated dealer is required by this section to perform if —(a)

the regulated dealer has reason to suspect that the designated transaction relates to money laundering, terrorism financing or the financing of proliferation of weapons of mass destruction; and[Act 6 of 2024 wef 01/05/2024]

(b)

the regulated dealer has reason to believe that performing the measure will tip off the customer or any other person.

(5) Where, in relation to any customer, a regulated dealer is for any reason unable or chooses not to complete performing any measure required to be performed under this section, the regulated dealer must —(a)

decline to enter into any transaction with the customer;

(b)

terminate any transaction entered into with the customer;

(c)

determine whether to make a disclosure under section 45 of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 or section 8 or 10 of the Terrorism (Suppression of Financing) Act 2002;

(d)

record the basis of the regulated dealer’s determination under paragraph (c); and

(e)

carry out any other measures that may be prescribed.

(6) A regulated dealer who fails to comply with subsection (1), (3) or (5) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000.