Singapore's Urban Redevelopment Authority (URA) has advised property developers to adopt a targeted approach to anti-money laundering (AML) checks, emphasizing that source-of-wealth and source-of-funds verifications are not necessary for most homebuyers. A spokesperson welcomed URA's guidance, noting that it addresses developers' concerns and practical challenges, paving a clearer path to compliance.
To streamline processes and enhance understanding, URA has revised guidelines in consultation with Redas, providing detailed guidance on customer due diligence and simplifying the risk assessment template for developers. URA will also collaborate with Redas to organize seminars and workshops to share best practices on AML and countering proliferation and terrorism financing.
This approach aligns with Singapore's broader strategy to maintain a business-friendly environment while upholding high standards in combating money laundering and terrorism financing. As Minister for National Development and MAS Deputy Chairman Chee Hong Tat stated last year, "We take a risk-proportionate approach, and not a zero-risk approach, because if we are overly kiasu, I think we will not be able to capture new opportunities."
By adopting a risk-proportionate approach, URA aims to balance regulatory compliance with operational efficiency, ensuring that developers can effectively manage risks without imposing undue burdens on legitimate property transactions.