Practice Note 12.3.1 — Verification Procedure in Respect of Customer's Identity
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Added on 1 December 2003
Amended on 19 May 2014
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Facsimile No : 6538 8273
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1.1 Rule 12.3.1 requires a Trading Member to take suitable steps to verify an individual customer's identity if the customer does not open an account in person.
1.2 This Practice Note sets out the procedures that a Trading Member should take to verify an individual customer's identity if the customer does not open an account in person.
2 Verification Procedure
2.1 A Trading Member may employ 1 or more of the following means to establish a customer's identity:—
(1) Accept account opening forms that are certified by:—
(a) a Justice of Peace, a commissioner for oaths, a notary public, or an advocate and solicitor;
(b) members of other securities exchanges which have established information sharing agreements with SGX-ST; or
(c) branches of banks which the customer holds a banking account.
A Trading Member may verify the certification through direct telephone contact with persons performing the certification;
(2) Establish telephone contact with the applicant on an independently verified home or business number;
(3) With the customer's consent, contact the personnel department of the customer's employer on a listed business number to confirm his employment; or
(4) Obtain from the customer statements from a bank, Central Provident Fund Board, income tax authority or such equivalent authority.
3 Digital Signature
3.1 A Trading Member is encouraged to explore the use of digital signatures for online identification and verification. The identification and verification procedures for acceptance of digital signatures must be at least as rigorous as those which a Trading Member would normally have employed.