Statute Details
- Title: Financial Services and Markets (Freezing of Assets of Persons — Yemen) Regulations 2023
- Act Code: FSMA2022-S238-2023
- Legislation Type: Subsidiary legislation (SL)
- Enacting Authority: Monetary Authority of Singapore (MAS)
- Authorising Act: Financial Services and Markets Act 2022
- Enacting Formula (powers used): Section 192, read with sections 15(1)(b) and 219(d) of the Financial Services and Markets Act 2022
- Citation and commencement: Comes into operation on 28 April 2023
- Primary object: To assist in giving effect to UN Security Council Resolution 2140 (2014)
- Key provisions (from extract): Regulations 1–8 (notably Regulations 5–6 and transitional Regulation 8)
- Revocation: Revokes the Monetary Authority of Singapore (Freezing of Assets of Persons — Yemen) Regulations 2015 (G.N. No. S 109/2015)
- Status (as provided): Current version as at 27 Mar 2026
What Is This Legislation About?
The Financial Services and Markets (Freezing of Assets of Persons — Yemen) Regulations 2023 (“Yemen Freezing Regulations”) are Singapore’s legal mechanism for implementing targeted financial sanctions connected to Yemen under the United Nations framework. In particular, the Regulations are designed to give effect to UN Security Council Resolution 2140 (2014), which established measures including the freezing of funds and other financial resources of persons and entities designated by the UN Security Council or its relevant committee.
In plain terms, the Regulations require financial institutions in Singapore to identify whether they hold or control assets belonging to a “designated person” on the UN list, and if so, to freeze those assets immediately and ensure they are not made available to the designated person. They also impose ongoing duties to report relevant holdings and transactions to MAS.
The Regulations operate as a compliance and enforcement tool within Singapore’s broader financial regulatory architecture under the Financial Services and Markets Act 2022. While the UN provides the international designation list and sanctions framework, Singapore’s Regulations translate those obligations into concrete duties for regulated institutions.
What Are the Key Provisions?
1. Object, application, and definitions (Regulations 2–4)
Regulation 2 sets the object: assisting in giving effect to UN Security Council Resolution 2140 (2014). Regulation 3 provides the scope: the Regulations apply to all financial institutions in Singapore. This is important for practitioners because it signals that the obligations are not limited to banks alone; rather, the term “financial institution” is used broadly under the Financial Services and Markets Act 2022 framework.
Regulation 4 defines key terms. The most operationally significant are:
- “Committee”: the UN Security Council Committee established under paragraph 19 of Resolution 2140 (2014).
- “UN List”: the list of individuals/entities identified by the Security Council or the Committee, updated over time and made available via the official UN website.
- “designated person”: an individual or entity on the UN List, subject to specified conditions.
- “funds”: includes cheques, bank deposits and other financial resources—so the definition is intentionally wide.
Regulation 4(2) addresses how designation status changes are treated. If a person/entity is added to the UN List on or after 28 April 2023, they are treated as a designated person with effect from the day immediately after the addition. If removed, they cease to be designated persons from the date of removal. If particulars are modified, the modifications take effect from the day immediately after the modification. This “time-shift” approach matters for compliance teams that need to decide when to implement or lift freezes.
2. Mandatory freezing and non-availability (Regulation 5)
Regulation 5 is the core operative provision. Under Regulation 5(1), subject to Regulation 5(3), any financial institution that has in its possession, custody or control in Singapore any of the following—funds, other financial assets, or economic resources—owned or controlled directly or indirectly by a designated person must:
- (a) immediately freeze the relevant assets; and
- (b) ensure that the assets are not made available directly or indirectly to or for the benefit of the designated person.
The “possession, custody or control” formulation is broad and is designed to capture not only direct ownership but also practical control over assets. The “directly or indirectly” language further extends the reach to structures where assets are held through intermediaries.
Regulation 5(2) expands the practical scope by deeming certain holdings to be owned or controlled by the designated person. Specifically, funds/assets held by an entity owned or controlled (directly or indirectly) by a designated person, or held by an individual/entity acting on behalf of or under the direction of a designated person, are treated as owned or controlled by the designated person. This is a key provision for lawyers advising on corporate structures, beneficial ownership, and agency arrangements.
3. Exceptions and permitted uses (Regulation 5(3))
Regulation 5(3) provides important carve-outs where the freezing requirement does not apply because MAS has determined that certain uses are necessary. There are three main categories:
- Basic expenses (including foodstuff, rent, mortgage discharge, medicine, medical treatment, taxes, insurance premiums, and public utility charges); and exclusively for (i) reasonable professional fees and reimbursement of expenses for legal services, or (ii) routine holding/maintenance fees for frozen assets.
- Extraordinary expenses, where MAS determines necessity.
- Judicial, administrative or arbitral liens or judgments—where the lien/judgment arose or was entered before 26 February 2014 and is not for the benefit of a designated person. In such cases, the frozen assets may be used to satisfy the lien/judgment (but only within the strict conditions).
For practitioners, the practical takeaway is that exceptions are not automatic. They depend on MAS determinations and, in some cases, on historical dates and the “not for the benefit of” condition. Compliance teams should therefore treat any proposed payment or release as requiring legal review and, where relevant, MAS engagement.
4. Interest and pre-existing contractual payments (Regulation 5(4))
Regulation 5(4) permits a financial institution to credit to an account that is frozen under Regulation 5(1:
- interest or other earnings due on the account; and
- payments due under any contract, agreement or obligation that arose before 6 March 2015.
However, the Regulation makes clear that such interest/earnings/payments remain subject to the freezing obligation. This means the institution may credit amounts administratively, but must still ensure they are not made available to the designated person.
5. Duty to provide information (Regulation 6)
Regulation 6 imposes an immediate reporting duty. A financial institution must inform MAS immediately if it:
- (a) has possession, custody or control in Singapore of funds/financial assets/economic resources owned or controlled by a designated person; or
- (b) has information about any transaction or proposed transaction involving such assets.
In addition to notifying MAS, the institution must provide any further information that MAS may require. This provision is critical for enforcement and for enabling MAS to assess whether exceptions under Regulation 5(3) should be granted.
6. Revocation and transitional treatment (Regulations 7–8)
Regulation 7 revokes the 2015 Yemen Freezing Regulations. Regulation 8 then provides continuity so that compliance does not reset when the new Regulations commence.
Under Regulation 8(1), any funds/assets frozen under Regulation 5(1) of the revoked Regulations are treated as frozen under Regulation 5(1) of the new Regulations. Regulation 8(2) preserves MAS determinations made under the revoked Regulations (for example, determinations under the exceptions framework) that were in force immediately before 28 April 2023. Regulation 8(3) similarly preserves information provided under the revoked Regulation 6 and treats any further information requirements as continuing under the new Regulation 6.
For legal practitioners, this transitional structure reduces the risk of technical non-compliance due to regulatory changeover and supports a “no gap” approach to sanctions implementation.
How Is This Legislation Structured?
The Regulations are concise and structured as eight regulations:
- Regulation 1: Citation and commencement (28 April 2023).
- Regulation 2: Object (implementation of UN Security Council Resolution 2140 (2014)).
- Regulation 3: Application (all financial institutions in Singapore).
- Regulation 4: Definitions, including the UN List and the “designated person” concept with effective dates for additions/removals/modifications.
- Regulation 5: Freezing obligations, non-availability, deeming provisions, exceptions, and permitted administrative credits (interest/earnings and pre-2015 contractual payments).
- Regulation 6: Duty to provide information to MAS immediately and on request.
- Regulation 7: Revocation of the 2015 Regulations.
- Regulation 8: Saving and transitional provisions to preserve existing freezes, determinations, and reporting continuity.
Who Does This Legislation Apply To?
Regulation 3 states that the Regulations apply to all financial institutions in Singapore. In practice, this means regulated entities that fall within the definition of “financial institution” under the Financial Services and Markets Act 2022 regime. Lawyers should therefore assess the client’s regulatory status and ensure that sanctions screening and controls are implemented across all relevant business lines and products.
The obligations are triggered by the institution’s possession, custody or control in Singapore over relevant assets, and by the institution’s knowledge of relevant transactions or proposed transactions. Accordingly, the Regulations also have an operational reach to compliance functions (sanctions screening, transaction monitoring, account management) and to legal teams supporting MAS engagement for exceptions.
Why Is This Legislation Important?
Targeted asset freezing regimes are among the most operationally demanding forms of sanctions compliance because they require institutions to act quickly, accurately, and consistently with evolving UN designation lists. The Yemen Freezing Regulations impose a strict “immediately freeze” standard once a designated person is identified. This creates a high compliance expectation for screening accuracy, escalation workflows, and documentation.
From an enforcement perspective, Regulation 6’s immediate reporting duty is central. It enables MAS to monitor compliance, assess potential exceptions, and coordinate with broader sanctions implementation. For practitioners, advising on evidence and timing—what was known, when it was known, and what steps were taken—can be decisive in regulatory reviews.
Finally, the transitional provisions in Regulation 8 are practically significant. They ensure that freezes and MAS determinations made under the revoked 2015 Regulations continue seamlessly. This reduces the risk of “reset” errors and supports continuity in compliance systems, including recordkeeping and audit trails.
Related Legislation
- Financial Services and Markets Act 2022 (authorising framework; including MAS powers relevant to sanctions implementation)
- Markets Act 2022 (listed in metadata; relevant context for the broader legislative environment)
- UN Security Council Resolution 2140 (2014) (international sanctions basis; including the UN List and Committee designations)
Source Documents
This article provides an overview of the Financial Services and Markets (Freezing of Assets of Persons — Yemen) Regulations 2023 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.