Regulatory Compliance Updates August 2024 – APAC Region
1 August 2024 – MPC 04/2024 Consultation Paper on proposed legislative amendments to the requirements for enhancing pre and post-transaction safeguards for retail clients
The Monetary Authority of Singapore (MAS) has released a Consultation Paper proposing legislative amendments aimed at enhancing pre and post-transaction safeguards for retail clients. This follows an earlier consultation that closed on 24 August 2023, which outlined initial changes and sought feedback. The new paper seeks to refine these proposals and includes additional clarifications.
To view the Consultation Paper, please click here.
5 August 2024 – Consultation Paper on proposed measures in relation to the provision of cross-border money transfer services to the People’s Republic of China
MAS has issued a Consultation Paper regarding MAS Notice PSN11, which initially required licensed remittance companies to suspend the use of non-specified channels for cross-border money transfers to China from 1 January 2024 to 31 March 2024, with an extension until 30 September 2024. This suspension was prompted by issues such as funds being frozen or forfeited from accounts in China. MAS now proposes to extend this suspension indefinitely and broaden it to include all customers, not just individuals. The Consultation seeks feedback from remittance companies and other interested parties on these proposed changes.
To view the Consultation Paper, please click here.
5 August 2024 – IID 03/2024 decommissioning of the Corporate E-Lodgment portal
The Corporate e-Lodgment (CeL) portal, which has been used for submitting fund management licence applications and regulatory forms since 2012, will be decommissioned on 1 September 2024. FMCs are to download any submissions made via CeL in the past 12 months before 31 August 2024 for record keeping purposes. With effect from 1 September 2024, FMCs are to submit Form 11, Form 25A, and Change in Particulars through MAS-Tx, with licence applications moving to eLicensing. MAS-Tx will eventually replace the MASNet portal by Q2 2025, consolidating access to submissions under a single login. In the interim, FMCs are to continue using MASNet and ensure the set-up of CorpPass for MAS-Tx to avoid disruption.
12 August 2024 – FDD Cir 06/2024 Financial Sector Incentive (FSI) – inclusion of services related to carbon credit trading and revision of Credit Facilities Syndication (CFS) forms
In the recent Budget 2023, the Financial Sector Incentive (FSI) scheme has been expanded and refined to enhance its effectiveness and simplify compliance processes. Key updates include the inclusion of carbon credit trading services and revisions to the Credit Facilities Syndication (CFS) forms.
- Inclusion of carbon credit services
Effective from 15 February 2023, the FSI-Standard Tier (FSI-ST) now covers income from intermediary services related to carbon credit transactions. This change reflects industry feedback and aims to support Singapore’s role as a carbon trading hub by incorporating activities such as brokerage services into the qualifying activities under FSI-ST.
- Simplified CFS forms
Significant changes to the FSI-CFS forms, effective from 1 October 2024, aim to streamline the submission process:
- Removal of Syndication Declaration: the requirement to submit a Syndication Declaration to MAS is removed. This simplifies the process, focusing instead on the final syndication of the loan.
- Extended submission deadline for Return A: agent banks now have up to two months from the loan signing or syndication completion to submit Return A, compared to the previous one month. For non-syndicated facilities, the deadline extends to eight months from the signing date.
- Self-assessment for Return A: agent banks can now self-assess the qualification of syndicated loans and make declarations without obtaining signed confirmations from arrangers. The requirement for submission of Return A is limited to qualifying syndicated facilities only.
- Simplified Return B: the scope of changes reported in Return B is narrowed to those affecting Singapore-based financial institutions. Updates are only required if a loan’s size drops below $20 million. Additionally, the need to analyse the tax impact of changes is removed, though correct tax claims must still be made.
For further details on the eligibility criteria for the FSI-CFS scheme, please refer to Annex 4 of the Circular.
15 August 2024 – Consultation Paper on proposed amendments to requirements for preparation of financial statements and reports under the Code on Collective Investment Schemes
This Consultation Paper seeks views on the proposals to (i) require authorised schemes (including REITs) to prepare their financial statements in accordance with the Singapore Financial Reporting Standards (International) (“SFRS(I)”) instead of the Statement of Recommended Accounting Practice 7: Reporting Framework for Investment Funds (“RAP 7”), and (ii) retain certain disclosures required by RAP 7 but are not required by SFRS(I) by prescribing these disclosures in the Code on Collective Investment Schemes.
Please refer here for more information.
15 August 2024 – SLD01/2024 Survey on Express Trust and Guidance Note relating to Trustees’ Prevention of Money Laundering, Countering the Financing of Terrorism and Countering Proliferation Financing Obligations
Singapore is a member of the Financial Action Task Force (“FATF”), which establishes international standards for AML/CFT. The FATF periodically assesses its members against these standards. Responses to this survey are crucial as financial institutions such as licensed trust companies, banks, fund managers may form business relationships or enter into transactions with trustees. The findings will aid Singapore’s understanding of the risk profile of trusts.
This survey is intended to assist the Ministry of Law in understanding, among other things, how express trusts are used, including their frequency, and the risks these trusts may pose from an AML/CFT perspective.
The Survey on Express Trusts should be completed by an authorised representative of the Company by 6 September 2024.
To access the survey, please refer to this link.
19 August 2024 – issuance of Prohibition Order against Mr. Aw Jun Ray, Reko Corinthians for corruption, drug trafficking and other serious crimes (Confiscation of Benefits) Act (CDSA) offences
On 19 August 2024, MAS imposed a one-year prohibition order on Mr. Aw Jun Ray, a former representative of HSBC Bank. This action follows Mr. Aw’s prior investigation for offences under the corruption, drug trafficking and other serious crimes (Confiscation of Benefits) Act (CDSA) and a 24-month conditional warning issued by the Singapore Police Force in July 2022. Mr. Aw failed to disclose this warning in his fit and proper declaration to HSBC when applying for a new role, violating the Financial Advisers Act (FAA) and the Securities and Futures Act (SFA). The prohibition order bars him from providing financial advisory services, participating in the management or becoming a substantial shareholder of financial advisory or capital markets services firms for one year.
To view the Enforcement Action, please click here.
19 August 2024 – issuance of Prohibition Order against Mr. Hoi Wei Kit
On 19 August 2024, MAS issued a nine-year prohibition order against Mr. Hoi Wei Kit, a former representative of OCBC Bank, following his conviction for fraud and related offences under the Penal Code and the Corruption, Drug Trafficking and Other Serious Crimes Act. Between October 2017 and January 2018, Mr. Hoi defrauded five OCBC customers out of $170,000 by creating fictitious time deposit accounts. He was convicted in February 2022 on multiple counts, including cheating and acquiring benefits from criminal conduct, and sentenced to 30 months in prison. The prohibition order bars him from providing financial advisory services or participating in the management of financial advisory firms for nine years.
To view the Enforcement Action, please click here.
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