MA-N-EXT 1/2012 18 June 2012 NOTICE TO FINANCIAL INSTITUTIONS

MA-N-EXT 1/2012
18 June 2012
NOTICE TO FINANCIAL INSTITUTIONS
MONETARY AUTHORITY OF SINGAPORE ACT, CAP. 186
PROHIBITION ON TRANSACTIONS WITH THE IRANIAN GOVERNMENT AND WITH IRANIAN
FINANCIAL INSTITUTIONS
1
INTRODUCTION
1.1
This Notice is issued pursuant to section 27B of the Monetary Authority of Singapore Act
(Cap. 186) (the “MAS Act”)1, and applies to all financial institutions, as defined in section
27A(6) read with section 27A(7) of the MAS Act.
1.2
This Notice shall take immediate effect.
2
DEFINITIONS
2
For the purpose of this Notice –
“designated person” means –
(a) the government of Iran;
(b) the Central Bank of Iran, also known as Bank Markazi Johouri Islami Iran,
(c) a financial institution in Iran;
(d) a branch or subsidiary of a person or entity falling within subparagraph (b) or
(c);
(e) a person or entity (whether corporate or unincorporate) owned or controlled,
directly or indirectly, by any person falling within subparagraph (a), (b), (c) or (d)
“financial institution” in relation to a financial institution in Singapore means a financial
institution as defined in section 27A(6) read with section 27A(7) of the MAS Act;
“subsidiary” means a subsidiary within the meaning of section 5 of the Companies Act (Cap.
50), or the equivalent thereof under the laws of a foreign jurisdiction;
1
The Financial Action Task Force has advised that counter-measures should be taken in relation to Iran
because of the on-going and substantial risks emanating from the country.
3
CESSATION OF TRANSACTIONS AND BUSINESS RELATIONSHIPS
3.1
No financial institution in Singapore shall, directly or indirectly, (a)
enter into;
(b)
continue to participate in;
(c)
arrange or facilitate the entering into or continued participation in; or
(d)
continue to arrange or facilitate the entering into or continued participation in,
any transaction or business relationship –
(i)
with; or
(ii)
for the benefit of, whether directly or indirectly,
a designated person.
3.2
For the avoidance of doubt, the prohibition in paragraph 3.1 includes a prohibition against
the provision of financial services by a financial institution in Singapore to a person in
connection with that person’s transaction or business relationship –
(a)
with; or
(b)
for the benefit of, whether directly or indirectly,
a designated person.
4
EXEMPTION FROM PROHIBITION
4
The prohibition in paragraph 3 shall not apply to transactions or business relationships in
respect of which the financial institution in Singapore has written to the Authority for
approval, and where the Authority has given its written approval.