Recently, the Monetary Authority of Singapore (the “MAS”) issued the Monetary Authority of Singapore (Freezing of Assets of Persons - Yemen) Regulations 2015 (the “Regulations”) which took effect on 6 March 2015. The Regulations apply to all financial institutions in Singapore and assist in giving effect to Resolution 2140 (2014) (the “UN Resolution”) of the Security Council of the United Nations.

Essentially, the UN Resolution imposes, among others, asset freeze against individuals or entities designated (“designated person”) as engaging in or providing support for acts that threaten the peace, security and stability of Yemen. Based on the sanctions list published on the UN website as at 20 November 2014, the designated persons are former Yemen President Ali Abdullah Saleh and two Houthi military commanders, namely Abd al-Khaliq al-Huthi and Abdullah Yahya al Hakim. For further details, please visit the official United Nations website at www.un.org.

Assets of designated persons to be frozen

Pursuant to the Regulations, any financial institution that, on or after 6 March 2015, has in its possession, custody or control in Singapore, any funds, other financial assets or economic resources owned or controlled, directly or indirectly, by any designated person must:

  • immediately freeze all such funds, financial assets or economic resources; and
  • ensure that such funds, financial assets or economic resources are not made available, whether directly or indirectly, to or for the benefit of the designated person.

This includes any funds, other financial assets or economic resources that are held by:

  • any entity owned or controlled, directly or indirectly, by any designated person; or
  • any individual or entity who acts on behalf of or under the direction of any designated person.

A financial institution may credit to any frozen account interest or other earnings due on the account, or payments due under any contract, agreement or obligation that arose before 6 March 2015. However, such interest, earnings or payments must also be frozen.

Duty to provide information

Under the Regulations, every financial institution also has a duty to immediately inform the MAS if it:

  • has possession, custody or control in Singapore of any funds, other financial assets or economic resources owned or controlled, directly or indirectly, by any designated person; or
  • has information about any transaction or proposed transaction in respect of any funds, other financial assets or economic resources owned or controlled, directly or indirectly, by any designated person.

Reference material

Please click here to access the Monetary Authority of Singapore (Freezing of Assets of Persons - Yemen) Regulations 2015 from the Singapore Statutes Online website www.statutes.agc.gov.sg.