(Singapore, 21 July 2020) The Monetary Authority of Singapore (MAS) today issued a consultation paper proposing enhanced powers to deal with risks, including those from cyber attacks, that can undermine the financial sector.
The proposed new Act for financial services and markets will consolidate similar provisions for various classes of financial institutions in the MAS Act into a single legislation, it says.
In addition, the new Act will include additional powers to prohibit unsuitable individuals from working in the financial industry, expand the scope of anti-money laundering and countering the financing of terrorism (AML/CFT) requirements to persons in Singapore who provide digital token services overseas, strengthen the framework for technology risk management, and enhance the effectiveness of dispute resolution.
The details of the proposed new provisions include preserving trust and deter misconduct in Singapore’s financial sector; further licensing, and regulating any person in Singapore who provides digital token services overseas; recognizing the pervasive use of technology and the growing sophistication of cyber threats.
MAS proposes to harmonize and expand its existing powers to impose requirements pertaining to technology risk management, including cybersecurity risks and data protection, on all regulated financial institutions.
It also proposes to increase the maximum penalty to $1 million for any contravention of these requirements.
Besides, MAS proposes to provide statutory protection to persons performing the duties of an approved dispute resolution scheme operator. This will strengthen their confidence to act independently in resolving consumers’ disputes with financial institutions.
