URA rolls out anti-money laundering requirements for developers

The URA has mandated that developers must Senja Close EC now institute measures to detect and deter money laundering and terrorism financing.The Developers (Anti-Money Laundering and Terrorism Financing) Act 2018 requires developers to carry out customer due diligence on buyers, checking a variety of information from their identification to the source of their funds and the purpose of the purchase.If the buyer is a prominent public figure in a foreign country, comes from a high-risk country, or is identified as having a high risk for money laundering or terrorism financing, additional due diligence is required.From June 28, failure to comply with these requirements may result in a fine up to $100,000 and can lead to the revocation or suspension of the developer’s license. Those convicted of money laundering or terrorism financing offences may also be barred from engaging in real estate development activities.To help with enforcement of these measures, URA is also increasing the frequency of their compliance visits.Developers must now take extra precaution to bring attention to and detect money laundering and terrorism financing activities. Customers must be carefully vetted and examined, with extra scrutiny given to customers from foreign countries, particularly those identified as prominent public figures or those from high risk countries.Penalties for those not living up to these requirements are severe, and developers should be aware of them going forward. URA is also increasing the frequency of their compliance visits to help ensure these policies are followed. Hopefully this new legislation will help protect the public and promote a safer environment.