Recent Updates: Singapore’s Sanctions against Russia

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On 24 February 2022, Russia launched a large scale military invasion of Ukraine following the major escalation of conflicts between the two countries. Countries around the world have imposed economic sanctions against Russia in an attempt to curb Russian aggression. In response to the invasion of Ukraine, the Singapore government has announced the imposition of financial measures targeted at designated Russian banks, entities and certain activities that may benefit the Russian government. All Singapore’s financial institutions (FIs) including payment service providers, capital market intermediaries are prohibited from entering into transactions with or providing financial assistance to designated entities or banks. Where there are existing business relationships with designated parties, the FIs should immediately freeze all such financial assets and ensure that the funds are not made available to the relevant parties.

Some Other Key Things to Note

In addition, MAS said in the recent notice that FIs are prohibited from entering into financial transactions or providing any kind of financial support to any person involving in the export, transit or transshipment of controlled strategic goods or dual-use goods from Singapore to Russia. The controlled items include all items on the List of Military Goods and all items with Category Codes under Category 3, Category 4 or Category 5 in the List of Dual-Use Goods. To further constrain Russia’s capacity to attack Ukraine, traders in Singapore dealing with the strategic goods are not allowed to transfer any of the items in the affected category codes to Russia.

Conclusion

FIs need to be aware of their roles in affecting the entire Russian financial system and economy. Therefore, it is important for FIs to remain constantly vigilant in detecting suspicious financial transactions and adopt risk-based approach to customer due diligence.

Full details of the financial measures in relation to Russia can be found in MAS notice.

How we can help

• Review of Risk Management Framework for Compliance with MAS Guidelines & Financial Measures
• Provide On-going Compliance Support Post-Licence Approval
• Keep Track of Regulatory Changes & Requirements

Reference Materials

Ministry of Foreign Affairs Singapore (2022). ‘Sanctions and Restrictions Against Russia in Response to its Invasion of Ukraine’. Available at: https://www.mfa.gov.sg/Newsroom/Press-Statements-Transcripts-and-Photos/2022/03/20220305-sanctions

Monetary Authority of Singapore (2022). ‘Notice SNR-N01 Financial Measures in Relation to Russia’. Available at: https://www.mas.gov.sg/regulation/anti-money-laundering/targeted-financial-sanctions