Singapore to step up crackdown on money laundering to cement financial hub status

The Monetary Authority of Singapore will focus on combatting disclosure breaches, mis-selling of financial products and countering terrorism financing

Singapore is consolidating its position as a global financial hub, but the city state has recently faced a number of high-profile financial cases

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The Monetary Authority of Singapore will focus on financial institutions which lack rigorous systems for combating money laundering. Photo: Reuters

Published: 2:22pm, 4 Nov 2020Updated: 2:22pm, 4 Nov 2020

Singapore’s financial regulator is prioritising its crack down on disclosure breaches, the mis-selling of financial products and anti-money-laundering this year and next as the city state looks to cement its status as a regional financial hub.

The Monetary Authority of Singapore will focus on financial institutions which lack rigorous systems and processes for combating money laundering and countering terrorism financing and will seek to better detect and take action against misconduct, the MAS said in a report published on Wednesday.

It will also enhance its focus on senior management accountability for breaches, it said.

The regulator imposed S$11.7 million (US$8.6 million) in civil penalties, and S$3.3 million for money laundering-related control breaches in the 18 months to June, according to the report that covers the period. It convicted nine people for market misconduct or related offences and issued 25 prohibition orders against unfit representatives, it said.

“Investigations and enforcement against financial misconduct will only become more challenging, as technology rapidly evolves, financial products grow in complexity and cases become increasingly multi-jurisdictional in nature,” said Peggy Pao, the MAS’s executive director of enforcement.

“A robust enforcement regime will be critical in sustaining Singapore’s reputation as a trusted financial centre.”