The Monetary Authority of Singapore intensifies its crackdown on financial irregularities, with record penalties and greater focus on cross-border misconduct.
SINGAPORE: The Monetary Authority of Singapore (MAS) has significantly increased its enforcement efforts, imposing higher penalties and securing more convictions for breaches of financial regulations, according to the latest MAS Enforcement Report released on Sept 19.
Escalating Penalties and Convictions
The 2022-2023 report highlights a sharp rise in enforcement actions:
Criminal Convictions: 39 cases, compared to 7 in 2020-2021 and 9 in 2019-2020.
Civil Penalties: S$12.96 million, up from S$150,000 in 2020-2021.
Financial Penalties and Compositions: S$7.88 million, compared to S$2.59 million in 2020-2021.
Prohibition Orders: 18 issued, with notable cases involving directors of financial entities and individuals linked to high-profile scandals.
Notable Cases
MAS tackled several high-profile breaches, including:
Noble Group: A civil penalty of S$12.6 million for publishing misleading financial statements.
Three Arrows Capital Directors: Nine-year prohibition orders for failing to meet their fiduciary duties.
UOB Kay Hian Private Ltd: A composition penalty of S$365,000 for lapses in compliance with anti-money laundering and counter-terrorism financing requirements.
1MDB Scandal: Lifetime prohibition for Roger Ng (former Goldman Sachs MD) and a 10-year order for Raj Sriram (former BSI Bank Deputy CEO).
The breaches also extended to major financial institutions like Citibank, DBS, OCBC, and Swiss Life, which collectively faced penalties totaling S$3.8 million for inadequate compliance with anti-money laundering measures.
Growing Challenges in Enforcement
MAS’ Enforcement Department Executive Director, Ms. Peggy Pao-Keerthi Pei Yu, noted that financial misconduct cases have become increasingly complex, involving multi-faceted, cross-border elements. “Such cases require intensive collaboration with local and overseas partners, voluminous digital evidence reviews, and adaptation to novel financial products and services,” she said.
Vigilance in Asset Management
The report emphasized the importance of vigilance in asset and wealth management, a critical area for Singapore’s financial hub status. MAS is focusing on proper conduct in these sectors to ensure integrity and trust.
Enforcement Efficiency
Despite the rising complexity, MAS managed to conclude cases efficiently:
Criminal Prosecutions: Average of 26 months.
Civil Penalties: Average of 47 months.
Other Actions: Average of 13 months.
Looking Ahead
MAS reiterated its commitment to safeguarding Singapore’s reputation as a trusted financial center. It plans to intensify scrutiny of asset managers and maintain stringent enforcement standards.
The Enforcement Department, established in 2016, has been instrumental in centralizing MAS’ regulatory oversight across banking, insurance, capital markets, and other financial sectors.
