Best Practices on Source of Wealth (SoW) Due Diligence in Singapore
š Summary of MAS’ Best Practices on Source of Wealth Due Diligence š
The Monetary Authority of Singapore (MAS) has recently released a paper in May 2025 which sets out best practices for financial institutions when assessing the Source of Wealth (SoW) of their customers. This MAS paper reinforces the importance of a risk-based and tiered approach to SoW due diligence, particularly in higher-risk areas such as private banking and complex corporate structures.
Within our article we have summarised the key focus areas outlined by MAS, which includes:
ā”ļø Applying guiding principles of materiality, relevance, and prudence;
ā”ļø Using a tiered approach based on risk level and wealth materiality;
ā”ļø Corroboration Methods;
ā”ļø Addressing common SoW Scenarios;
ā”ļø Establishing trigger events for ongoing SoW monitoring;
ā”ļø Ensuring senior management oversight; and
ā”ļø Mitigating Controls for Residual SoW Risks.
If you’d like to discuss how these practices may apply to your company or if you have any questions on how to align your framework with MAS’ expectations, feel free to contact us at info@pcacompliance.com.
Link to MAS Publication: https://lnkd.in/gYjyNkmi
We invite you to read our publication below.
PDF: MAS Best Practices on SoW Due Diligence
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ā The comments raised within this article do not form a legal opinion nor should they be construed as being legal advice ā
