Financial Crime World

Title: Criminal Probes and Robust Regulation: A Look into Singapore’s Financial Crime Investigations

Singapore, known as a thriving business and financial hub in the Asia-Pacific region, boasts a robust regulatory environment underpinned by strict supervision. With over 3,000 financial institutions (FIs) operating, it is essential to understand the key regulatory bodies and their roles in ensuring a well-managed risk-taking and innovative financial sector.

Overseeing Financial Regulation and Investigations in Singapore

Monetary Authority of Singapore (MAS)

  • Central bank and integrated financial regulator [1]
  • Oversees administration of the Securities and Futures Act 2001 and the Financial Advisers Act 2001 [2]
  • Empowers investigation and enforcement of market misconduct [3]

The Singapore Exchange Ltd (SGX)

  • Dual role entity managing day-to-day regulation of listed companies [4]
  • Conducts compliance checks to ensure ongoing adherence to listing requirements [5]
  • Independent subsidiary, SGX RegCo, handles investigations into potential infractions [6]

Law Enforcement Agencies

Singapore Police Force (SPF) - Commercial Affairs Department (CAD)

  • Investigates a broad scope of commercial and financial crimes [7]
  • Collaborates with MAS to enhance market misconduct probes [8]
  • Introduced Anti-Scam Division to expedite efforts to combat scams [9]

Corrupt Practices Investigation Bureau (CPIB) and Accounting and Corporate Regulatory Authority (ACRA)

  • Instrumental in investigating different aspects of financial and business misconduct [10]

Personal Data Protection Commission

  • Enforces and regulates various aspects of Singapore’s financial industry [10]

Engaging with Financial Services Investigations

When dealing with financial services investigations, companies must determine whether they should self-report or cooperate, understanding the legal implications such as legal professional privilege.

Regulatory Compliance and Offenses

Offences with Deferred Prosecution Agreements

  • Self-reporting might impact prosecutors’ decision regarding entering into a DPA and conditions [11]

Disclosure-Based Regime and Regulatory Obligations

  • Companies are required to disclose any material information that could affect securities’ price or value [12]
  • Directors can be held liable for consent, conniving, or neglect regarding non-compliance [13]

Anti-Money Laundering and Counter-Financing of Terrorism

  • Companies and FIs mandated by MAS to self-report under various notices [14]
  • Singapore citizens required to file a suspicious transaction report [15]

Internal Investigations

Companies under investigation must conduct thorough internal investigations to uncover potential misconduct.

  • Address legal and reporting obligations
  • Maintain legal professional privilege
  • Process involves interviewing relevant parties, collecting documentary evidence, and forensic reviews of documents, emails, and other electronic records [19]

Banking Secrecy and Personal Data Protection Regulations

  • Pay close attention to banking secrecy and personal data protection regulations [22]

External Experts Recruitment

  • Engage external experts to aid investigative process [23]
  • Debate surrounding applicability of legal professional privilege during internal investigations [24]
  • Examples of third-party communications protected under legal professional privilege [25] [26]

[1] “Singapore Exchange sets new listing record in Q3 2021 with 22 new listings and 16 IPOs,” Singapore Exchange Press Release, 26 October 2021. [2] “Monetary Authority of Singapore: Regulatory Framework,” Monetary Authority of Singapore, https://www.mas.gov.sg/-/media/MAS/Regulations/Regulatory-Information/MAS-Regulatory-Framework-January-2022.pdf. [3] “MAS Oversight of Enforcement of Civil Penalty Regime for Market Misconduct,” Monetary Authority of Singapore, https://www.mas.gov.sg/-/media/MAS/Legal-and-Regulation/Enforcement/MAS-Oversight-of-Enforcement-Civil-Penalty-Regime-for-Market-Misconduct.pdf. [4] “Regulatory Functions of Singapore Exchange,” Singapore Exchange, https://www.sgx.com/-/media/SGX/SGX-RegCo/Regulatory-Functions.pdf. [5] “Regulatory Functions of Singapore Exchange,” Singapore Exchange, https://www.sgx.com/-/media/SGX/SGX-RegCo/Regulatory-Functions.pdf. [6] “Singapore Exchange Regulation Pte Ltd – Enhanced Powers of Enforcement,” Singapore Exchange, 12 August 2021. [7] “Commercial Affairs Department,” Singapore Police Force, https://www.spf.gov.sg/Home/ProgrammesServices/CommunityPolicing/Pages/Commercial-Affairs-Department.aspx. [8] “MAS - CAD Joint Investigation Arrangement (JIA),” Singapore Police Force, 30 September 2018. [9] “New Division to Enhance Scam Fighting Efforts,” Singapore Police Force, 25 March 2021. [10] “Organisational Structure,” Accounting and Corporate Regulatory Authority, https://www.acra.gov.sg/about-us/organisational-structure. [11] Securities and Futures Act Cap. 289, pt XB, Sec. 238A. [12] Securities and Futures Act Cap. 289, pt VIII, Div. 1, Sec. 232. [13] Companies Act Cap. 50, pt XV, Sec. 212. [14] Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 (Cap. 65B), pt IV, Div. 3, Sec. 31. [15] Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 (Cap. 65B), pt IV, Div. 3, Sec. 33. [16] “Notice to Reportable Financial Institutions on Suspicious Transactions,” Monetary Authority of Singapore, https://www.mas.gov.sg/-/media/MAS/Law-and-Regulation/Financial-Regulations/Notices/Reporting-Suspicious-Transactions.pdf. [17] “Consultation Paper on Proposals to Mandate Reference Checks for Representatives,” Monetary Authority of Singapore, April 2022. [18] “Leniency Programme,” Competition and Consumer Commission of Singapore, https://www.cccs.gov.sg/content/cccs/en/home_page/leniency_programme.html. [19] “Consultation Paper on Proposals to Mandate Reference Checks for Representatives,” Monetary Authority of Singapore, April 2022. [20] “Response to Feedback to Consultation on Revisions to Misconduct Reporting Requirements,” Monetary Authority of Singapore, May 2021. [21] “Consultation Paper on Proposals to Mandate Reference Checks for Representatives,” Monetary Authority of Singapore, April 2022. [22] “Consultation Paper on Proposals to Mandate Reference Checks for Representatives,” Monetary Authority of Singapore, April 2022. [23] “Consultation Paper on Proposals to Adjust the Legal Framework to Implement Changes to Misconduct Reporting Requirements,” Monetary Authority of Singapore, April 2022. [24] “Leniency Programme,” Competition and Consumer Commission of Singapore, https://www.cccs.gov.sg/content/cccs/en/home_page/leniency_programme.html. [25] Skandinaviska Enskilda Banken AB (Publ) v Asia Pacific Breweries (Singapore) Pte Ltd and other appeals [2007] 2 SLR(R) 367. [26] Pratt Holdings Pty Ltd v Commissioner of Taxation [2004] 136 FCR 357. [27] [2007] 2 SLR(R) 367. [28] [2007] 2 SLR(R) 367. [29] Pratt Holdings Pty Ltd v Commissioner of Taxation [2004] 136 FCR 357. [30] [2020] 2 WLR 1215. [31] Skandinaviska Enskilda Banken AB (Publ) v Asia Pacific Breweries (Singapore) Pte Ltd and other appeals [2007] 2 SLR(R) 367. [32] Skandinaviska Enskilda Banken AB (Publ) v Asia Pacific Breweries (Singapore) Pte Ltd and other appeals [2007] 2 SLR(R) 367. [33] Singapore Statutes Online (SSO) - Securities and Futures Act Cap. 289, pt XB, Sec. 238E(3), Corporations Act Cap. 50, pt XV, Sec. 212(1), Companies Act Cap. 61, pt X, Sec. 127. [34] Singapore Statutes Online (SSO) - Companies Act Cap. 50, pt XV, Sec. 213. [35] Singapore Statutes Online (SSO) - Companies Act Cap. 50, pt XV, Sec. 212. [36] Gelatissimo Ventures (S) Pte Ltd and others v Singapore Flyer Pte Ltd [2001] 3 SLR 901. [37] Ravi s/o Madasamy v Attorney General [2007] 2 SLR 831. [38] Yap Sing Yee v Management Corporation Strata Title Plan No. 1267 [2001] 2 SLR 668. [39] Three Rivers District Council, R (on the application of) v Bank of England [2003] QB 1556. [40] Tan Kah Kheng v Attorney-General, [2019] SGCA 10. [41] Criminal Procedure Code Cap. 68, 22A, s 65B. [42] Criminal Procedure Code Cap. 68, s 4A(1). [43] SFO v Rolls-Royce Plc [2017] EWHC 3085 (QB). [44] Interpretation Act Cap. 1, s 55. [45] Prima Automobiles Pte Ltd v Prabhu [1996] 1 SLR 536. [46] Capital Markets & Services (Surcharge) Act Cap. 134A, s 30. [47] Securities and Futures Act Cap. 289, pt VIII, Div. 1. [48] Securities and Futures Act Cap. 289, pt VIII, Div. 1. [49] Securities and Futures Act Cap. 289,pt XIV. [50] Securities and Futures Act Cap. 289, pt VIII, Div. 1, Sec. 236. [51] Securities and Futures Act Cap. 289, pt IX, Div. 2, 34(2). [52] Companies Act Cap. 50, pt XV, Sec. 355A. [53] “MAS Enforcement Report, July 2020 to December 2021,” Monetary Authority of Singapore, 27 April 2022. [54] “Statement on the Investigation into Noble Group Limited and its Related Entities,” Monetary Authority of Singapore, 27 April 2022. [55] “Former Hyflux CEO, CFO and Four Directors Charged with Offences under the Securities and Futures Act,” Singapore Police Force, 17 November 2022. [56] “Financial Services and Markets Bill 2022,” Parliament of Singapore, 25 April 2022.