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

    PRA Consults on Implementation of Certain Provisions of CRD5

    PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).

    July 31, 2020 WebPage Regulatory News
    News

    EIOPA Report Identifies Key Financial Stability Risks for Insurers

    EIOPA published the financial stability report that provides detailed quantitative and qualitative assessment of the key risks identified for the insurance and occupational pensions sectors in the European Economic Area.

    July 30, 2020 WebPage Regulatory News
    News

    EBA Publishes Risk Dashboard for First Quarter of 2020

    EBA published its risk dashboard for the first quarter of 2020 together with the results of the risk assessment questionnaire.

    July 30, 2020 WebPage Regulatory News
    News

    EBA Issues Updates on Stress Test Exercise for Banks in EU

    EBA announced that the next stress testing exercise is expected to be launched at the end of January 2021 and its results are to be published at the end of July 2021.

    July 30, 2020 WebPage Regulatory News
    News

    PRA Proposes Guidance Related to Matching Adjustment under Solvency II

    PRA published the consultation paper CP11/20 that sets out its expectations and guidance related to auditors’ work on the matching adjustment under Solvency II.

    July 30, 2020 WebPage Regulatory News
    News

    MAS Issues Guidance on Dividend Distributions by Banks

    MAS published a statement guidance on dividend distribution by banks.

    July 30, 2020 WebPage Regulatory News
    News

    APRA Updates Guidance on Capital Management for Banks

    APRA updated its capital management guidance for banks, particularly easing restrictions around paying dividends as institutions continue to manage the disruption caused by COVID-19 pandemic.

    July 29, 2020 WebPage Regulatory News
    News

    FSB Report Reviews Macro-Prudential Framework and Tools in Germany

    FSB published a report that reviews the progress on data collection for macro-prudential analysis and the availability and use of macro-prudential tools in Germany.

    July 29, 2020 WebPage Regulatory News
    News

    EBA Urges Firms to Finalize Preparations for End of Brexit Transition

    EBA issued a statement reminding financial institutions that the transition period between EU and UK will expire on December 31, 2020; this will end the possibility for the UK-based financial institutions to offer financial services to EU customers on a cross-border basis via passporting.

    July 29, 2020 WebPage Regulatory News
    News

    SRB on Operational Continuity in Resolution and FMI Contingency Plans

    SRB published guidance on operational continuity in resolution and financial market infrastructure (FMI) contingency plans.

    July 29, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5606