Pawnbrokers, moneylenders, and dealers in precious products must now retain records of their transactions for five years even after ceasing operations, following Singapore’s move to strengthen its measures against proliferation financing.
The measure also requires pawnbrokers to enhance customer due diligence, implement programmes and measures, document risk assessments, implement internal policies, and have an independent audit function related to terrorism financing and the proliferation of weapons of mass destruction. Low, however, underscored that these additional costs are not expected to be significant as requirements mandated by the bill are similar to the “measures that the affected industries already have in place to counter money laundering and terrorism financing.”
Even with increased compliance costs, both experts believe that the measure will have a positive effect on the regulated entities. Shah’s insights are no different, saying the bill empowers the affected entities to safeguard the economy against proliferation financing.