MAS Steps Up Efforts to Strengthen Accountability of Senior Managers

The Monetary Authority of Singapore (MAS) has announced plans to strengthen accountability of senior managers in financial institutions (FIs) to promote ethical conduct at all levels of the organization.

Enhancing Governance Structure

The new guidelines on individual accountability and conduct will focus on measures that FIs should implement to:

Promote individual accountability of senior managers
Strengthen oversight over material risk personnel
Reinforce standards of proper conduct among all employees

However, some FIs have expressed concerns that the guidelines may result in an excessive amount of paperwork. MAS has emphasized the importance of a strong governance structure to enable clear direction and oversight of culture and conduct across the FI.

Enforcement Priorities

MAS has outlined its enforcement priorities for the coming period, which include:

Pursuing serious and complex cases of disclosure breaches
Deepening capability to proactively detect potential mis-selling of financial products
Continuing to focus on FIs that lack rigorous systems and processes for combating money laundering and countering terrorism financing.

MAS Takes Action Against Market Abuse and Financial Misconduct

In recent years, MAS has taken strong actions against FIs and individuals for market abuse, financial misconduct, and control breaches related to money laundering. The authority’s Enforcement Report for 2019-2020 highlights the following:

9 criminal convictions
25 prohibition orders
124 warnings
$11.7 million in civil penalties
3 license revocations
76 letters of advice
$3.4 million in financial penalties and compositions
23 reprimands

Singapore Issued National Risk Assessment on Terrorism Financing

MAS has also issued a Terrorism Financing National Risk Assessment (NRA) for 2020, which highlights the risks posed by terrorism financing to the country’s financial system. The report identifies key vulnerabilities and provides recommendations for mitigating these risks.

Expert Insights

In an exclusive interview with PwC, experts shared their views on the new guidelines and their implications for FIs:

“The guidelines are a welcome development in the fight against financial misconduct,” said Paul Pak, Singapore Asset & Wealth Management Leader at PwC.
“However, FIs must be prepared to invest significant resources in implementing these measures.”

Get in Touch

For more information on our risk, controls, and compliance services, please contact:

Paul Pak, Singapore Asset & Wealth Management Leader at PwC: +65 6236 3288 or paul.s.pak@pwc.com
Dave Heng, Deputy Head, Asset & Wealth Management Regulatory Compliance at PwC: +65 9673 8716 or dave.sh.heng@pwc.com
Karen Shih, Deputy Head, Asset & Wealth Management Risk and Controls at PwC: +65 9818 8240 or karen.q.shih@pwc.com
Chin Shook Han, Manager, Asset & Wealth Management Risk, Regulations & Compliance at PwC: +65 9739 4180 or shook.han.chin@pwc.com