Featured Product

    MAS Consults on Enhanced Powers to Address Risks in Financial Sector

    July 21, 2020

    MAS published a consultation paper on the new Omnibus Act for financial sector. The proposed new Act for financial services and markets will consolidate similar provisions related to the prevention of money laundering and terrorism financing and the resolution of financial institutions in the MAS Act into a single legislation. The new Act will include additional powers to prohibit unsuitable individuals from working in the financial industry, strengthen the framework for technology risk management, and enhance the effectiveness of dispute resolution. The new Act will also expand the scope of anti-money laundering and countering the financing of terrorism (AML/CFT) requirements to persons in Singapore who provide digital token services overseas. The consultation paper seeks feedback until August 20, 2020.

    Annex A to the consultation paper sets out a list of questions regarding which comments are being sought while Annexes B to G set out the proposed provisions for each part of the new Act. In this paper, the MAS proposed to:

    • Harmonize and expand its existing powers to impose requirements pertaining to technology risk management, including cyber security risks and data protection, on all regulated financial institutions and to increase the maximum penalty to SGD 1 million for any contravention of these requirements.
    • Expand its power to issue prohibition orders. This proposal will broaden the categories of persons who may be subject to prohibition orders, rationalize the grounds for issuing prohibition orders (from a list of specific criteria into a single fit and proper test), and widen the scope of prohibition. 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. In exercising this power, MAS will adopt a risk-proportionate approach, taking into account the nature, severity, and impact of the misconduct.
    • License and regulate, for AML/CFT purposes, any person in Singapore who provides digital token services overseas. The provisions in the new Act will expand the scope of existing legislation, which already regulates most of the digital token services provided in Singapore. The provisions will align Singapore’s regulatory regime with the enhanced standards adopted by the Financial Action Task Force for virtual asset service providers.
    • Provide statutory protection to persons performing the duties of an approved dispute resolution scheme operator, thus strengthening their confidence to act independently in resolving consumer disputes with financial institutions.

     

    Comment Due Date: August 20, 2020

     

    Keywords: Asia Pacific, Singapore, Banking, Securities, AML/CFT, MAS Act, Digital Token, Cyber Risk, Technology Risk, Misconduct Risk, MAS

    Related Articles
    News

    EBA Finalizes Remuneration Standards for Investment Firms in EU

    EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).

    January 21, 2021 WebPage Regulatory News
    News

    ECA Recommends Actions to Enhance Resolution Planning for Banks

    EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.

    January 20, 2021 WebPage Regulatory News
    News

    BoE Publishes Key Elements of the 2021 Stress Testing for Banks in UK

    BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.

    January 20, 2021 WebPage Regulatory News
    News

    PRA Proposes Rules on Identity Verification of Depositor Protection

    PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).

    January 20, 2021 WebPage Regulatory News
    News

    FSB Publishes Work Program for 2021

    FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.

    January 20, 2021 WebPage Regulatory News
    News

    FCA Issues Update on Move to New Data Collection Platform

    FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.

    January 20, 2021 WebPage Regulatory News
    News

    Bundesbank Publishes Derivation Rules for Reporting by Banks

    Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.

    January 19, 2021 WebPage Regulatory News
    News

    FED Revises Capital Planning and Stress Testing Requirements for Banks

    FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.

    January 19, 2021 WebPage Regulatory News
    News

    ECB Releases Results of Bank Lending Survey for Fourth Quarter of 2020

    ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.

    January 19, 2021 WebPage Regulatory News
    News

    ESAs Publish Reporting Templates for Financial Conglomerates

    ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.

    January 18, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6484