Statute Details
- Title: Financial Services and Markets (Freezing of Assets of Persons — South Sudan) Regulations 2023
- Act Code: FSMA2022-S239-2023
- Type: Subsidiary legislation (SL)
- Authorising Act: Financial Services and Markets Act 2022
- Enacting authority: Monetary Authority of Singapore (MAS)
- Commencement: 28 April 2023
- Legislative purpose (object): To assist in giving effect to UN Security Council Resolution 2206 (2015)
- Key provisions: Regulation 5 (asset freezing); Regulation 6 (duty to provide information); Regulation 7 (revocation); Regulation 8 (saving and transitional provisions)
- Revoked instrument: Monetary Authority of Singapore (Freezing of Assets of Persons — South Sudan) Regulations 2015 (G.N. No. S 776/2015)
- Current version status: Current version as at 27 Mar 2026 (per platform display)
What Is This Legislation About?
The Financial Services and Markets (Freezing of Assets of Persons — South Sudan) Regulations 2023 (“the Regulations”) are Singapore’s legal mechanism for implementing targeted financial sanctions connected to South Sudan. In practical terms, the Regulations require financial institutions in Singapore to identify “designated persons” listed by the United Nations and to freeze funds and other financial assets or economic resources that are owned or controlled by those persons.
The Regulations are designed to give effect to United Nations Security Council Resolution 2206 (2015). That resolution establishes measures aimed at preventing individuals and entities associated with threats to peace and stability in South Sudan from accessing financial resources. Singapore’s Regulations translate those international obligations into enforceable duties for regulated financial institutions operating within Singapore.
Although the Regulations are narrow in subject matter—focused on freezing assets—they are operationally significant. They create immediate compliance obligations, require ongoing screening against the UN list, and impose an information-reporting duty that supports enforcement and potential licensing or determinations by the Authority (MAS).
What Are the Key Provisions?
1. Definitions and the UN listing framework (Regulation 4)
The Regulations define key terms that drive compliance. The “Committee” refers to the UN Security Council Committee established under paragraph 16 of Resolution 2206 (2015). The “UN List” is the list of individuals and entities identified by the Security Council or the Committee as subject to the measures under paragraph 12 of Resolution 2206 (2015), updated from time to time. The Regulations also define “designated person” as an individual or entity set out in the UN List, subject to specific conditions.
Importantly, Regulation 4(2) addresses how designation status changes over time. If a person is added to the UN List on or after 28 April 2023, they are treated as designated with effect from the day immediately following the date of addition. If removed, they cease to be designated from the date of removal. If particulars are modified, the modification is treated as effective from the day immediately following the modification date. This “day-after” effect is crucial for institutions that must implement freezes promptly while avoiding uncertainty about the exact effective date.
2. Mandatory freezing and prohibition on making resources available (Regulation 5)
Regulation 5 is the core operative provision. Subject to limited exceptions, any financial institution that has in its possession, custody or control in Singapore any “funds, other financial assets or economic resources” owned or controlled (directly or indirectly) by a designated person must do two things immediately:
- (a) Freeze all such funds/assets/resources; and
- (b) Ensure they are not made available to or for the benefit of the designated person, whether directly or indirectly.
This is a broad obligation. It is not limited to cash in a bank account; it extends to “funds” (which includes cheques, bank deposits and other financial resources) and to “economic resources” more generally. The prohibition on “making available” captures indirect benefit—meaning institutions must consider not only direct payments to the designated person, but also arrangements that could effectively provide value to them.
Regulation 5(2) expands the scope by treating as owned or controlled by the designated person any funds/assets/resources held by (i) an entity owned or controlled (directly or indirectly) by the designated person; or (ii) an individual or entity acting on behalf of or under the direction of the designated person. This “control” and “acting on behalf” concept is often where compliance risk lies, because institutions may encounter complex corporate structures or intermediaries.
3. Exceptions and MAS determinations (Regulation 5(3))
Regulation 5(3) provides that the freezing requirement does not apply to certain funds/assets/resources that MAS has determined to be necessary for specific purposes. These exceptions are not automatic; they depend on a determination by the Authority.
The exceptions include:
- Basic expenses (including foodstuff, rent, mortgage discharge, medicine, medical treatment, taxes, insurance premiums, and public utility charges);
- Exclusively for reasonable professional fees and reimbursement of expenses related to legal services; or for fees/service charges imposed for routine holding or maintenance of frozen funds;
- Extraordinary expenses (again, subject to MAS determination); and
- Judicial, administrative or arbitral liens or judgments where the lien/judgment arose or was entered before 3 March 2015 and is not for the benefit of a designated person—allowing use of the funds/assets/resources to satisfy the lien/judgment.
For practitioners, the key point is that institutions should not treat these categories as self-executing. The text indicates that MAS must determine that the funds/assets/resources are necessary for the specified purposes. In practice, this means institutions should be prepared to engage with MAS for guidance or authorisation where transactions fall within these exceptions.
4. Treatment of interest and pre-existing contractual payments (Regulation 5(4))
Regulation 5(4) permits a financial institution to credit to an account frozen under Regulation 5(1) (a) interest or other earnings due on the account; or (b) payments due under any contract, agreement or obligation that arose before 22 December 2015. However, the provision expressly states that the interest/earnings/payments are still subject to the freezing requirement in Regulation 5(1). In other words, crediting may be permitted administratively, but the institution must still ensure the funds are not made available to the designated person.
5. Duty to provide information (Regulation 6)
Regulation 6 imposes a proactive reporting duty. Every financial institution that either:
- has possession, custody or control in Singapore of funds/assets/resources owned or controlled by a designated person; or
- has information about any transaction or proposed transaction involving such funds/assets/resources,
must immediately inform MAS and provide any further information that MAS may require relating to the funds/assets/resources and the relevant transaction or proposed transaction.
The duty is triggered not only by holding assets, but also by knowledge of transactions or proposed transactions. This aligns with the sanctions objective: to prevent circumvention and to enable MAS to monitor and, where appropriate, direct how exceptions may be handled.
6. Revocation and transitional continuity (Regulations 7 and 8)
Regulation 7 revokes the earlier 2015 Regulations. Revocation is important for compliance continuity: institutions must ensure they are operating under the current legal instrument and not relying on outdated provisions.
Regulation 8 contains saving and transitional provisions. It provides that funds/assets/resources frozen under Regulation 5(1) of the revoked Regulations are treated as frozen under Regulation 5(1) of the new Regulations. It also preserves MAS determinations made under the revoked Regulations that were in force immediately before 28 April 2023, treating them as determinations under the new Regulation 5(3). Finally, information provided under the revoked Regulation 6 is treated as having been provided under the new Regulation 6, and any requirement for further information is treated as a requirement under the new Regulation 6.
For legal teams, this reduces the risk of “resetting” compliance records or re-notifying MAS for matters already captured under the prior regime.
How Is This Legislation Structured?
The Regulations are structured as a short, operational instrument with eight regulations:
- Regulation 1 sets out citation and commencement (28 April 2023).
- Regulation 2 states the object: implementing UN Security Council Resolution 2206 (2015).
- Regulation 3 provides application: all financial institutions in Singapore.
- Regulation 4 defines key terms, including the UN list and how “designated person” status changes.
- Regulation 5 sets out the freezing obligation, the prohibition on making resources available, and the exceptions/determinations.
- Regulation 6 imposes the duty to inform MAS and provide further information.
- Regulation 7 revokes the 2015 Regulations.
- Regulation 8 provides saving and transitional provisions to preserve existing freezes, determinations, and information submissions.
Who Does This Legislation Apply To?
Regulation 3 states that the Regulations apply to all financial institutions in Singapore. While the extract does not reproduce the definition of “financial institution,” the authorising framework is the Financial Services and Markets Act 2022, under which “financial institutions” is typically a broad category covering entities licensed or regulated for financial services activities.
In practical compliance terms, the Regulations are aimed at institutions that hold or transact with funds and financial assets—such as banks, payment service providers, and other regulated intermediaries—because they are the entities most likely to possess “funds, other financial assets or economic resources” and to encounter transactions involving designated persons.
Why Is This Legislation Important?
These Regulations are important because they operationalise UN targeted sanctions into Singapore law with immediate effect. The freezing obligation is triggered by possession, custody or control in Singapore, and it applies to assets owned or controlled directly or indirectly by designated persons. This creates a high compliance burden: institutions must maintain effective screening, due diligence, and transaction monitoring to detect designated persons and prevent access to resources.
From an enforcement and risk perspective, the Regulations also include a strong information-reporting requirement. Regulation 6 ensures MAS receives timely intelligence about both holdings and attempted or proposed transactions. This supports sanctions effectiveness and helps MAS respond to potential circumvention.
For practitioners advising financial institutions, the transitional provisions in Regulation 8 are particularly useful. They confirm that existing freezes and MAS determinations under the 2015 Regulations continue under the 2023 Regulations, and that prior information submissions are treated as made under the new regime. This reduces administrative disruption and supports continuity of compliance controls.
Related Legislation
- Financial Services and Markets Act 2022 (authorising Act; relevant sections include section 192, read with sections 15(1)(b) and 219(d) as stated in the enacting formula)
- Markets Act 2022 (listed in metadata; note that the enacting formula in the extract references the Financial Services and Markets Act 2022)
- Monetary Authority of Singapore (Freezing of Assets of Persons — South Sudan) Regulations 2015 (G.N. No. S 776/2015) (revoked)
- UN Security Council Resolution 2206 (2015) (international basis for the sanctions implementation)
Source Documents
This article provides an overview of the Financial Services and Markets (Freezing of Assets of Persons — South Sudan) Regulations 2023 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.