Singapore
Legislative and Regulatory Amendments
- Monetary Authority of Singapore (MAS)
The Inter-Ministerial Committee (IMC) released its report to share the findings and recommendations following a review of Singapore’s Anti-Money Laundering (AML) framework. The overarching strategy is a whole-of-society approach, in which relevant stakeholders, who are part of frontline of defence, need to work collaboratively with the Government.
Date of Release: 4 Oct 2024
Implementation on: 4 Oct 2024
Applicable to: Financial Industry
Implementation of Shared Responsibility Framework
MAS and Infocomm Media Development Authority of Singapore (IMDA) announced that the Shared Responsibility Framework (SRF) for phishing scams, which was published for consultation on 25 October 2023, will be implemented on 16 December 2024. MAS and IMDA have proposed an SRF assigning financial institutions (FIs) and telecommunication companies with the duties to mitigate phishing scams and sets expectations of payouts to affected scam victims when these duties are breached.
Date of Release: 24 Oct 2024
Implementation on: 16 Dec 2024
Applicable to: Financial Institutions and Telecommunication Companies
Establishment of Global Finance & Technology Network for Next Phase of FinTech Growth
MAS announced the establishment of the Global Finance &Technology Network (GFTN) to further strengthen Singapore as a global FinTech hub and enhance global connectivity for impactful innovation in financial services. GFTN will work with MAS to advance industry and policy dialogues in payments, asset tokenisation, and AI/quantum. GFTN will also support MAS’ efforts to develop and grow a vibrant FinTech ecosystem, and scale SFF as the premier global FinTech event.
Date of Release: 30 Oct 2024
Implementation on: 30 Oct 2024
Applicable to: Financial Industry
Publication of National Anti-Money Laundering Strategy
Singapore published its National Anti-Money Laundering (AML) Strategy, as part of continuing efforts to maintain the effectiveness of our AML framework. The National AML Strategy outlines Singapore’s strategic approach to address money laundering (ML) risks and guides its risk-targeted actions to combat ML amidst rapidly changing risks and criminal typologies.
Date of Release: 30 Oct 2024
Implementation on: 30 Oct 2024
Applicable to: Financial Industry
Commercialisation of Asset Tokenisation
MAS announced its plan to advance tokenisation in financial services. The plan includes the following: (i) to form commercial networks to deepen liquidity of tokenised assets; (ii) to develop an ecosystem of market infrastructures; (iii) to foster industry frameworks for tokenised asset implementation; and (iv) to enable access to common settlement facility for tokenised assets.
Date of Release: 4 Nov 2024
Implementation on: Not specified.
Applicable to: Capital Markets
MAS and Banque de France (BdF) announced the successful completion of the groundbreaking joint experiment in post-quantum cryptography (PQC) conducted across continents over conventional Internet technologies. The experiment aims to strengthen communication and data security in the face of quantum computing advancements, and the successful experimentation marking a crucial milestone in the evolution of the protection of international electronic communications against the cybersecurity threats posed by quantum computing. The experiment has demonstrated not only the feasibility of these new security methods but also demonstrated its effectiveness in widely adopted application environments.
Date of Release: 5 Nov 2024
Implementation on: The cooperation will likely have a continuation or second phase.
Applicable to: Financial Industry
Consultation Response on Proposed Framework for Single Family Offices
MAS issued its response to the consultation on proposed framework for Single Family Offices (SFOs) operating in Singapore. SFOs are exempt from licensing under the Securities and Futures Act 2001 (“SFA”), and the proposals are aimed at harmonising the criteria for a simplified class exemption regime and addressing potential money laundering (“ML”) risks posed by SFOs.
Date of Release: 6 Nov 2024
Implementation on: Transitional period of 1 year from the effective date of the SFO framework
Applicable to: Single Family Offices
Green Finance and Capital Markets Initiatives to Strengthen Financial Cooperation with China
MAS announced new green finance and capital markets initiatives to strengthen financial cooperation with China. The initiatives include catalysing green financing flows, exploring a pilot that will leverage the existing over-the-counter bond market framework between China and Singapore, strengthening collaboration in indices and Exchange Traded Funds (ETFs) product links, and facilitating financial institutions’ access to Chinese markets.
Date of Release: 11 Nov 2024
Implementation on: Not specified.
Applicable to: Green Finance and Capital Markets
Multi-Jurisdiction Common Ground Taxonomy
The International Platform on Sustainable Finance (IPSF) presented the Multi-Jurisdiction Common Ground Taxonomy (M-CGT), a comparison of the sustainable finance taxonomies of China, the EU and Singapore. It was developed by the People’s Bank of China (PBOC), the European Union Directorate-General for Financial Stability, Financial Services and Capital Markets Union (FISMA), and MAS. The M-CGT builds on the EU-China Common Ground Taxonomy (CGT).
Date of Release: 14 Nov 2024
Implementation on: 14 Nov 2024
Applicable to: Green Finance
Leverage Requirements and Additional Disclosures for REITs
MAS issued revisions to the Code on Collective Investment Schemes (Code) to rationalise leverage requirements for the REIT sector. This follows the broad support received across respondents of various categories during a public consultation from July to August 2024. A minimum interest coverage ratio (ICR) of 1.5 times and a single aggregate leverage limit of 50% will be applied to all REITs with immediate effect. The leverage requirements together with the ICR will work together to foster prudent borrowing by all REITS while operational flexibility is offered.
Date of Release: 28 Nov 2024
Implementation on: There will be a few stepped-up disclosures which will apply from financial period endings on or after 31 March 2025 onwards
Applicable to: Real Estate Investment Trusts
- Accounting and Corporate Regulatory Authority (ACRA)
Updated Process in Data Protection Officer (DPO) Registration
ACRA announced that the Data Protection Officer (DPO) registration on its BizFile+ will be unavailable until further notice. Organisations seeking to register a new DPO or update DPO information can do so through an online form available on the Personal Data Protection Commission (PDPC) website.
Date of Release: 20 Nov 2024
Implementation on: From 1 December 2024 until further notice
Applicable to: Singapore Companies
ACRA launched its new Bizfile portal. The key features of the portal are the following: (i) a refreshed look and feel with user-centric design and intuitive navigation features to deliver a seamless filing experience; (ii) an integrated portal with easy access to registry filing services, business information products and API services; (iii) enhanced data integrity and governance, with new features to improve filing accuracy and data quality; (iv) strengthened personal data protection, including a new Contact Address requirement; and (v) easier access to business data to support business growth.
Date of Release: 9 Dec 2024
Implementation on: 9 Dec 2024
Applicable to: Singapore Companies
Simplified Two-Tier Penalty Framework for Ad Hoc Lodgements
ACRA announced the adoption of the 2-tier penalty framework for ad hoc lodgements for all entity type, including Singapore-incorporated companies, Variable Capital Companies (VCCs), Limited Liability Partnerships (LLPs), Limited Partnerships, and businesses. Under the 2-tier penalty framework, the penalty for late filing will be $50 within the first 3 months after the due date, or $200 if the lodgement is filed more than 3 months after the filing due date. This applies to ad hoc lodgements that are due on or after 9 December 2024. The existing 8-tier penalty framework continues to apply for ad hoc lodgements due before 9 December 2024. The current 2-tier penalty framework for late annual lodgements remains unchanged.
Date of Release: 9 Dec 2024
Implementation on: 9 Dec 2024
Applicable to: Singapore-incorporated Companies, Variable Capital Companies, Limited Liability Partnerships, Limited Partnerships and Businesses
Consultations
- Monetary Authority of Singapore (MAS)
MAS issued consultation paper on proposed regulatory approach, regulations, notices and guidelines for Digital Token Service Providers issued under the Financial Services and Markets Act 2022. The Financial Services and Markets Act (the “FSM Act”) was passed in the Parliament on the 5 April 2022. FSM Act Part 9 provides legislative framework for the regulation of (a) individuals and partnerships who, from a place of business in Singapore, carry on a business of providing a digital token (“DT”) service outside Singapore; and (b) Singapore corporations that carry on a business, whether from Singapore or elsewhere, of providing a digital token service outside Singapore, collectively, “digital token service providers” or “DTSPs”. To affect the objectives of Part 9 of the FSM Act, MAS intends to prescribe or issue the following instruments: (a) Financial Services and Markets Regulation; (b) anti-money laundering and countering the financing of terrorism (“AML/CFT”) notices under the FSM Act; (c) other notices under the FSM Act; and (d) guidelines.
Consultation Period: 4 Oct 2024 – 4 Nov 2024
Applicable to: Digital Token Service Providers
MAS issued a consultation paper on the proposed enhancements to the RBC 2 capital treatment for investment in structured products and infrastructure investments for insurers under RBC 2 framework. In particular, MAS proposes to: (a) introduce a differentiated capital treatment for infrastructure investments; and (b) revise the capital treatment of structured products, including those which are infrastructure in nature. The consultation paper outlines the key proposals of both reviews, which will be incorporated into Notice 133 on Valuation and Capital Framework for Insurers (“MAS Notice 133”).
Consultation Period: 18 Oct 2024 – 22 Nov 2024
Applicable to: Insurers
This document is provided for information purposes only and does not constitute legal, tax, investment, regulatory, accounting or other professional advice. For more information on the legal and regulatory status of IQ-EQ companies please visit www.iqeq.com/legal-and-compliance.