Singapore proposes new powers to deal with risks in financial sector
22 Jul 2020

More muscle to prevent unsuitable individuals from working in the finance industry and strengthen the framework for technology risk management are among new proposals made by the Monetary Authority of Singapore (MAS) to deal with risks that can undermine the sector.

It issued a consultation paper proposing such enhanced powers on Tuesday (July 21).

The proposed new Act for financial services and markets will consolidate similar provisions for various classes of financial institutions in the MAS Act into a single legislation.

The new Act will enable MAS to expand its power to issue prohibition orders to preserve trust and deter misconduct in Singapore’s financial sector, it said.

This will broaden the categories of individuals who may be subject to such orders, rationalise the grounds for issuing the orders from a list of specific criteria into a single fit and proper test, and widen the scope of prohibition.

The authority said: “The new powers will enable MAS to holistically assess whether a person’s misconduct renders him unsuitable to perform one or more roles or activities within the financial sector and the appropriate action that should be taken under the prohibition order powers.”

MAS also proposed to expand the scope of requirements for anti-money laundering and countering the financing of terrorism to those in Singapore who provide digital token services overseas.

Existing legislation already regulates digital token services provided in Singapore. The new provisions will align Singapore’s regime with the enhanced standards adopted by global watchdog, the Financial Action Task Force.

By Sue-Ann Tan, The Straits Times, 21 July 2020

Read more at The Straits Times

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