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 Issues Erratum for Phase 2 Package of Reporting Framework 3.0

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    EBA Updates Lists of Entities for Use in Capital Calculations under SA

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    MAS Amends Notice on Related Party Transactions of Banks

    MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.

    April 08, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Euro Short-Term Rate

    ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.

    April 07, 2021 WebPage Regulatory News
    News

    EBA Consults on Standards Related to FRTB-SA

    EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).

    April 07, 2021 WebPage Regulatory News
    News

    PRA Proposes Rules Related to IRB Approach for Credit Risk

    PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.

    April 07, 2021 WebPage Regulatory News
    News

    BoE Outlines Regulatory Treatment of Recovery Loan Scheme of UK

    The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.

    April 06, 2021 WebPage Regulatory News
    News

    FSB Addresses G20 on COVID Measures, TBTF Reforms, and Climate Risks

    FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.

    April 06, 2021 WebPage Regulatory News
    News

    OSFI Unwinds Temporary Increase to Covered Bond Limit for Banks

    OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.

    April 06, 2021 WebPage Regulatory News
    News

    EU Amends CRR and Securitization Regulation in Response to Pandemic

    To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).

    April 06, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6826