Headline: Singapore’s Monetary Authority Cracks Down on Money Laundering and Terrorist Financing with New Regulations
Record High Finances in 2022 and 2023
The Monetary Authority of Singapore (MAS) is taking a stronger stance against money laundering (ML) and terrorism financing (TF) with three significant updates. According to the latest MAS enforcement report, civil penalties and financial fines reached an all-time high of $20.8 million in 2022 and 2023.
- 75% of fines issued for AML and CFT violations: Nearly three-quarters of these fines – $7.10 million – were issued for violations of MAS’ Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements. (Source: MAS Enforcement Report)
- MAS’ commitment to international standards: As a longstanding member of the Financial ActionTask Force (FATF), Singapore continues its dedication to implementing international standards to combat ML and TF. (More on Singapore’s commitment to FATF)
Fighting ML, TF, and Proliferation Financing on a Global Scale
COSMIC: A Digital Platform to Combat Financial Crimes
One initiative aimed at combatting ML, TF, and proliferation financing (PF) is the launch of COSMIC on April 1, 2024. This groundbreaking digital platform, a collaboration between MAS and six major commercial banks in Singapore, serves to:
- Securely share customer information
- Help financial institutions (FIs) identify and flag suspicious activity
- Provide timely risk assessments for better protection against financial crimes
Payment Services Act Amendments
MAS announced amendments to the Payment Services Act on April 2, 2024, expanding the scope of its regulation to digital payment token (DPT) service providers, also known as virtual asset service providers (VASPs). These changes will ensure that these providers meet international FATF Standards and mitigate the unique ML/TF risks associated with their operations.
Learn About Payment Services Act Amendments
Regulatory Obligations for Approved Exchanges and Recognised Market Operators
Lastly, MAS presented a consultation paper proposing AML/CFT-related obligations for Approved Exchanges and Recognised Market Operators. These measures are in response to the growing trend of market operators allowing non-regulated financial institutions (FIs) to trade directly on their markets without intermediation. This arrangement poses significant ML/TF risks, and the proposed requirements aim to strengthen the overall financial system against illicit activities.
Learn About Regulatory Obligations for Approved Exchanges and Recognised Market Operators
Stay Informed and Manage Your Risks Effectively
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Sources:
- MAS Enforcement Report
Additional Sources:
- COSMIC press release
Additional Sources:
- Payment Services Act amendments press release
- MAS consultation paper
- MyComplianceOffice Platform Information