On 2 June 2014, the Monetary Authority of Singapore (the "MAS") released a consultation paper proposing changes to the MAS Notices on Prevention of Money Laundering and Countering the Financing of Terrorism (the "AML/CTF Notices") to address issues arising from the implementation of the Personal Data Protection Act 2012 (the "PDPA"). The consultation period ended on 20 June 2014.
The PDPA, in force fully on 2 July 2014, provides that an organisation can only collect, use or disclose the personal data of an individual with the individual's consent, and for a reasonable purpose which the organisation has made known to the individual. In the course of performing customer due diligence in compliance with the AML/CTF Notices, financial institutions (the "Fls") may be required to collect, use and disclose personal data of their customers, without their consent. As a result, the FIs will be in breach of the PDPA provisions.
The PDPA allows exemptions to be made from the PDPA provisions. Therefore, the MAS proposes to amend the AML/CTF Notices to expressly allow an FI to collect, use and disclose personal data of an individual customer (including that of an agent acting on his behalf or his beneficial owner) without the respective individual's consent for the purposes of complying with the requirements under the AML/CTF Notices.
The proposed amendments to the AML/CFT Notices are intended to take effect from 2 July 2014. The MAS consultation paper on "Obligations of Financial Institutions under the Personal Data Protection Act 2012 - Amendments to AML/CFT Notices" is available from the MAS website www.mas.gov.sg by clicking here.