MAS Enforcement Report - Financial Institutions (“FIs”) to Take Active Approach to Combatting Misconduct

Back in April 2022, the Monetary Authority of Singapore (“MAS”) published and provided an update on the increasing investigations and enforcement actions taken by the island city regulators. The latest report highlights the strong enforcement actions brought against financial institutions (“FIs”) and individuals for breaches of laws and regulations administered by MAS.

This comes with no surprise, as the report is based upon investors and the industry’s feedback.

Per the report, MAS have imposed S$2.4 million in composition penalties for anti-money laundering and countering financing of terrorism (“AML/ CFT”) breaches between the period of July 2020 and December 2021, as well as S$150,000 in civil penalties. In addition, as much as 20 prohibition orders (“POs”) against unfit representatives was issued.

Equally, MAS, together with the Attorney-General’s Chambers (“AGC”), also secured the criminal convictions of 7 individuals for market misconduct or related offences.

The report also highlighted some of its enforcement priorities for the Year 2022/2023 period, including studying options to enhance investors’ recourse for losses due to securities market misconduct. The regulators will be looking to enhance the effectiveness in pursuing breaches of corporate disclosure requirements, including through close collaboration with key regulatory and enforcement partners.

Furthermore, it plans to step up focus on corporate finance advisory firms and fund management companies that fail to comply with business conduct requirements and strengthening focus on holding senior managers accountable for breaches by their financial institutions or subordinates.

Download the report to read more.

How can Tricor Axcelasia help?

We at Tricor Axcelasia, can provide the following services to ensure that FMCs are able to comply and be prepared for the impending changes. These services include: developing compliance manual, establishing a risk management framework, providing compliance ongoing support and internal audit.

Specific to Anti-Money Laundering and Countering the Finance of Terrorism (“AML/ CFT”) services as well, these include: Drafting of AML Policy and Procedures, Development of AML risk assessment, AML due diligence and audit, and AML relevant training.

Equally, we do provide other advisory services which includes Business Continuity Management (“BCM”), Technology Risk Management (“TRM”) as well as the most recent regulatory hot button topic Environmental Risk Management (“ERM”).