Financial Crime World

SingaporE’s War on Financial Crimes: A Joint Effort by CAD and MAS

Financial crimes continue to pose a significant threat to the global economy, and Singapore, as a leading financial hub, is no exception. The following sections detail the efforts of two key regulatory bodies, the Commercial Affairs Department (CAD) and the Monetary Authority of Singapore (MAS), in Singapore’s war on financial crimes.

The Threat of Financial Crimes in Singapore

  • Recent high-profile investigations, such as those into the ties between financiers in Singapore and the Malaysian state fund 1MDB, have underscored the need for vigilance and cooperation among regulatory bodies. (Source)
  • According to the most recent data from MAS, between July 2017 and December 2018:
    • There was one criminal conviction.
    • S$16.8 million in financial penalties and compositions were meted out.
    • S$698,000 in civil penalties were imposed.
    • 19 prohibition orders, 37 reprimands, 223 warnings, and 444 supervisory reminders were issued.

The Role of the Commercial Affairs Department (CAD)

The CAD, a department under the Singapore Police Force, plays a crucial role in combating white-collar crimes in Singapore, including:

  • Commercial fraud
  • Financial fraud

The Role of the Monetary Authority of Singapore (MAS)

MAS is responsible for:

  • Enforcing compliance with provisions and regulations under statutes, such as the Securities and Futures Act (Cap. 289) (SFA)
  • Regulating and supervising financial institutions

Collaboration Between CAD and MAS

Since March 2015, MAS and CAD have collaborated on a joint investigations arrangement, which:

  • Streamlines the investigation process
  • Enables agencies to pool their investigative resources and expertise

Joint Investigations and Significant Outcomes

One significant outcome of this collaboration was the joint investigation into the October 2013 penny stock crash, involving three Singapore-listed companies: Asiasons Capital Ltd, Blumont Group Ltd, and LionGold Corp Ltd. This was the largest market manipulation case in Singapore’s history.

Key Areas of Focus and Penalties

Key areas under the purview of the SFA include:

  • Insider trading and market abuse
  • Offenses such as false trading, market manipulation, making false statements, and fraudulent inducements
  • Penalties for these offenses can reach fines of up to S$250,000 and imprisonment for a term of seven years

Other Forms of Fraud in Singapore

In addition to the above areas of focus, other forms of financial crimes, such as:

  • Corporate fraud
  • Bribery and corruption
  • Money laundering and terrorist financing

can result in significant penalties and damages.

The Importance of CAD and MAS Collaboration

The cooperation between CAD and MAS is essential in ensuring financial laws are enforced effectively and swiftly, deterring potential perpetrators from using Singapore as a conduit for their illegal activities.

Conclusion

Singapore’s ongoing efforts to address financial crimes, led by bodies such as CAD and MAS, demonstrate the country’s commitment to maintaining a resilient and secure financial system amid increasingly sophisticated financial crimes.

[Source]: Monetary Authority of Singapore, Annual Report 2018

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