All provisions · AML/CFT Act (Cap. 251) · Part Vi: Preventive measures
39 Timing of customer due diligence
(1) A reporting entity shall carry out customer due diligence measures before or during the course of establishing a business relationship or carrying out a one-off transaction.
(2) The reporting entity may after carrying out risk management procedures, to include but not limited to, limitation to the number, types or amount of transactions that can be performed and the monitoring of large or complex transactions being carried out outside the expected norms for the type of relationship, complete the verification of the customer due diligence measures after the establishment of a business relationship if—
(a) this is necessary so as not to interrupt the normal conduct of business, such as—
(i) non-face-to-face business;
(ii) securities transactions;
(b) there is no reasonably determined and justified suspicion of money laundering or terrorist financing activities:
Provided that the customer due diligence measures are completed as soon as practicable.
(3) Where a reporting entity suspects that money laundering or terrorist financing activities may have occurred in respect of one of its customers and the reporting entity reasonably believes that if the customer due diligence process is carried out, the customer in respect of whom the reporting entity is suspicious, will be tipped-off, the reporting entity shall file a suspicious activity report under section 48 of this Act instead of performing the customer due diligence requirements.
(2) The reporting entity may after carrying out risk management procedures, to include but not limited to, limitation to the number, types or amount of transactions that can be performed and the monitoring of large or complex transactions being carried out outside the expected norms for the type of relationship, complete the verification of the customer due diligence measures after the establishment of a business relationship if—
(a) this is necessary so as not to interrupt the normal conduct of business, such as—
(i) non-face-to-face business;
(ii) securities transactions;
(b) there is no reasonably determined and justified suspicion of money laundering or terrorist financing activities:
Provided that the customer due diligence measures are completed as soon as practicable.
(3) Where a reporting entity suspects that money laundering or terrorist financing activities may have occurred in respect of one of its customers and the reporting entity reasonably believes that if the customer due diligence process is carried out, the customer in respect of whom the reporting entity is suspicious, will be tipped-off, the reporting entity shall file a suspicious activity report under section 48 of this Act instead of performing the customer due diligence requirements.
Official source: Anti-Money Laundering and Countering the Financing of Terrorism Act (Cap. 251), Act 5 of 2020, Revised Edition as at 17 January 2025 (Acts 5 of 2020, 7 of 2021, 8 of 2021, 62 of 2021, 9 of 2022, 12 of 2024, S.I. 145 of 2020)
