Singapore regulatory enforcement newsflash

For the first time in over 30 years, the Monetary Authority of Singapore (the MAS) has withdrawn its approval for a merchant bank to operate in Singapore in an enforcement action against the Singapore subsidiary of the Swiss bank, BSI. The enforcement action relates to serious breaches of anti-money laundering requirements, poor management oversight and gross misconduct of certain bank staff. 

The MAS has also imposed financial penalties of $13.3 million for 41 breaches of anti-money laundering provisions.  

Comment

There is a wider context to this story and focus on the actions of various individuals, but for present purposes, this is a timely reminder of the importance of reviewing and improving money laundering controls in accordance with recent guidance and regulation in Singapore.

Actions tends to speak louder than words. The MAS has today made itself crystal clear: put your house in order or we will come. 

The enforcement action is consistent with the MAS’ focus on AML controls and its repeated warnings over the last few years that it will take strong action for failures in this area. 

The action also reflects many of the key themes of global enforcement actions for AML controls failures:

• failures to tighten controls despite repeated warnings
• poor and ineffective oversight by senior management
• unacceptable risk culture
• failure to perform enhanced customer due diligence on high risk accounts and to monitor suspicious customer transactions on an ongoing basis

Authors:

Mohammed Reza (JWS Asia Law Corporation, Singapore)
T +65 6831 5582
E mohammed.reza@jwsasialaw.com.sg

Joanna Pearson (Simmons & Simmons)
T +65 6831 5607
E joanna.pearson@simmons-simmons.com

JWS Asia is a boutique Singapore law practice that provides a one-stop service to the asset management and investment funds sector in Singapore, offering a full range of legal services to clients across all stages of development - from fund structuring formation and marketing, to advisory services such as licensing, corporate structuring, transactional and dispute resolution services.

JWS Asia offers clients deep local knowledge combined with access - through our "best friends" referral relationship - to the wide network and global expertise of Simmons & Simmons, a leading international law firm.