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Financial Regulation Updates in Singapore: MAS Takes Aim at AML and CFT Enforcement
The Monetary Authority of Singapore (MAS) has been cracking down on anti-money laundering (AML) and combating the financing of terrorism (CFT) with three recent updates. The regulator’s latest enforcement report revealed a whopping $12.96 million in civil penalties imposed and $7.88 million in financial fines and compositions imposed, the highest since MAS Enforcement Reports began publication in 2019.
Focus on AML and CFT Compliance
A staggering $7.10 million of those fines were issued for violations of AML and CFT requirements, highlighting the regulator’s focus on these critical areas. Singapore is a long-standing member of the Financial Action Task Force (FATF), the global standard-setting body for AML/CFT, and works closely with fellow policymakers to develop international standards.
Enhancing Regulation and Enforcement
To enhance regulation and enforcement in 2024, MAS has launched COSMIC, a centralized digital platform that enables financial institutions to securely share customer information. The platform is underpinned by the Financial Services and Markets Act (FSMA) and aims to improve AML/CFT compliance.
New Obligations for Singapore-Organized Market Operators
In another move, MAS has proposed imposing AML and CFT obligations on Singapore-organized market operators, citing an increasing trend of non-regulated foreign investors trading directly on their markets without facilitation by a Capital Market Intermediary. The regulator is seeking feedback on its consultation paper, which closes on April 29, 2024.
Enhancing AML/CFT Compliance in the Securities Market
MAS has also taken steps to enhance AML/CFT compliance in the securities market, introducing new requirements for Approved Exchanges and Recognized Market Operators to perform AML/CFT checks on investors trading on their markets.
Staying Ahead of Regulatory Changes
As regulatory bodies continue to update and introduce new policies, firms must stay ahead of changes. RegTech solutions like MyComplianceOffice (MCO) can help firms monitor and report on:
- Conflicts of interest
- Gifts, entertainment, and hospitality
- Outside business activities
- Political contributions
- Third-party activity
MCO’s Regulatory Change Manager Module
With MCO’s Regulatory Change Manager module, firms can understand changes to regulations across the globe. This module provides a comprehensive overview of regulatory updates, allowing firms to stay informed and adapt quickly to changing requirements.
MCO’s Know Your Third-Party Risk Management Module
MCO’s Know Your Third-Party risk management module automates the end-to-end process of managing third-party contracts and relationships, reducing the complexity of managing vendors and significantly reducing the risk of corruption and bribery through vendor activities.
MCO’s Gifts, Entertainment, and Hospitality (GEH) Module
Finally, MCO’s GEH module delivers a robust solution for monitoring employee gifts, meals, entertainment, travel, and hospitality activities. This module helps firms maintain compliance with regulatory requirements while also promoting ethical business practices.
Conclusion
As firms navigate the complexities of AML/CFT compliance, RegTech solutions like MCO can provide valuable support in reducing risk and staying ahead of regulatory changes. By leveraging these solutions, firms can ensure they are compliant with evolving regulations and minimize the risk of non-compliance.