Recently my client from a foreign country open an investment account with me. As a foreigner, there are strict checks in place to ensure there is no money laundering. MAS prescribed strict rules to ensure all advisers abide by them. Through the entire process I found it to be rather tedious. Fortunately my client is understanding. I had to arrange for a trusted person in that foreign country to meet my client to conduct the necessary verifications check. But I noticed that some firms do not conduct such check, and this is detrimental to the customer:

The regulators want to ensure that all money flowing into the country and out of the country can be tracked if there is a necessitity to do so. This means that all sources of money can be trace to the originators. That is why the identity of the originator has to be established through rigorious checks.

But I noticed that some online investment portals do not impose such strict checks. It seem that they only need a photocopy of the passport or telephone bill. But as there is no face to face contact, anyone can fiticiously create a false photocopy of passport and telephone bill. I am more worry for the client then for the investment firm. If the firm is found liable for breaching MAS regulation, I don't care. But I am worry for the client because in the event of investigation, an innocent client can find his investment account suspended indefinitely. This is very bad. Therefore, a foreign investor should not be so happy if he or she can open an investment account hassle free. Ensure that the investment firm conduct rigorious checks !