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Monetary Authority of Singapore (MAS): Roles & Compliances for Companies Discussed

The Monetary Authority of Singapore (MAS) has been for a long time the gold standard of sustainable, responsible financial services. Anyone working in the field of Fintech (finance and technology) should be aware of MAS, and how it can maintain Singapore’s status as one of the most prestigious economic hubs in the world.

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The Monetary Authority of Singapore (MAS) has been for a long time the gold standard of sustainable, responsible financial services. Alongside functioning as an official member of the Singapore Central Bank, MAS does more than print money.

monetary authority of singapore mas

Anyone working in the field of Fintech (finance and technology) should be aware of MAS the organization, its mission, and how it can maintain Singapore’s status as one of the most prestigious economic hubs in the world.

Let’s have a closer look at the Monetary Authority of Singapore MAS.

What is the Monetary Authority of Singapore (MAS)?

MAS Singapore was established in 1971 in response to the issues with coordination and communication between government departments. SG MAS was constructed as a primary authority to unite all financial policies around the city-state.

The MAS’s mission is always to foster an economic expansion that is sustainable and to focus on growth that is not inflationary. The purpose of the Singapore Central Bank is to create a stable and developed international monetary center.

Read More: Register your company in Singapore

The Role of the Monetary Authority of Singapore MAS

roles of monetary authority of singapore

The financial institutions of the past have been accused of being inflexible to the needs of modern consumers as well as businesses needs.

In recent times new and the most innovative Fintech companies have made significant efforts to shift the rules of the game. MAS SG is among the few organizations that are continuing to evolve in the fast-paced world. 

The various tasks for MAS can be reduced to:

Central Banking:- As Singapore’s central bank MAS cases currency notes oversees the economy, oversees Singapore’s administrative foreign funds, & supervises revenue policies in the sector of finance.

Development:- MAS collaborates with other departments of the government and financial institutions, and technology creators, to build an efficient and robust financial sector.

Supervisory of the financial sector:- The agency supervises and regulates the operations of all institutions that deal in finance, including banks and insurers, capital market intermediaries and financial advisory firms Fintech companies, and exchange for stocks.

Regulatory:- MAS provides guidelines for ensuring that the financial industry isn’t used for ML/TF. To achieve this it has created a variety of internal departments working in conjunction with Singapore’s government agencies to ensure strict compliance.

Read More: Functioning of MAS Singapore

The MAS collaborates with various government agencies to regulate ML/TF.

To enforce compliance with AML/CTF and to prosecute offenses that are related to ML/TF, The MAS has recently increased the sanctions for violators. It works in tandem with other departments of the federal government to promote the distribution of financial data and act on the information.

Corruption, Drug Trafficking and distinct serious offenses (appropriation in benefits) Act [CDSA] oversees the abuse of the banking system to facilitate drug trafficking and other criminal actions and criminalizes the laundering of accumulated cash benefits.

The Terrorism (Suppression of Financing) Act (TSOFA) regulates financial transactions and services that a company or an individual could be able to engage in with any terrorist organization. The Act relates to the firm that is recorded here.

Commercial Affairs Department’s (CAD) Financial Investigation Division enforces the CFT/AML authority by the detection of tremendous stake activity as well as the investigating and prosecuting of considered crimes, and confiscation of proceeds from unlawful transactions.

The Payment Services Act 2019 lays down the list of the services considered “payment services”, and regulates and supervises the activities of businesses that provide financial services.

Read More: Open a Corporate Bank Account in Singapore

Who has to comply?

In the year 2018, the MAS made significant changes to its regulatory and legislative framework, allowing for greater security in the market, as well as permitting the development of an efficient financial system.

The AML rules involve the subsequent entities that are listed in Singapore:

  • Banks
  • Merchant Banks
  • Digital Banks
  • Companies in finance
  • Approved Trustees
  • Trust Companies
  • Credit Card or Charge Card Holders
  • Holders of Prepaid Electronic Cash/Cards or Stored Value Facilities
  • Licensed Money Changers and Remitters
  • Insurers
  • Life Insurers
  • Industries in cryptocurrency as well as digital Token Subsidies
  • Fund Management Firms & Capital Market Intermediaries

Read More: Best Banks in Singapore for Foreigners

What are the requirements for compliance?

requirements for MAS compliances

Financial services companies and organizations that are regulated are expected to:

  1. Recognize ML and TF – Threats in their organization Based on the type of client and location, the services and products, third-party providers of data, as well as delivery channels.
  2. Reduce risks – Designate one to be a compliance officer, educate and monitor staff, and establish policies and guidelines.
  3. Find out who their customers are Perform KYC and individuality assurance CDD PEP reviews, and positive possession reviews, and identify if a client is from a huge risk location. The MAS also suggests the creation of a customer profile that includes business relationships, kinds of transactions, business activities, sources of funds financial, and wealth profiles.
  4. Conduct periodic assessment and EDD – For customers with high risk as well as transactions, jurisdictions, and customers’ periodic review of risk assessments and conformity to compliance procedures.
  5. Report any pessimistic transactions Put in spot systems that can scrutinize unusual, complicated, and huge transactions, and signal the cautious transaction to CAD. The CAD has executed a globally benchmarked money transaction documenting regime to reduce the risks of ML/TF.

Infractions could lead to the possibility of criminal charges, confiscation of benefits and property as well as fines of up to $1 million.

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Conclusion

The Monetary Authority of Singapore (MAS) has been for a long time the gold standard of sustainable, responsible financial services. 

If you’re still having questions regarding the Monetary Authority of Singapore (MAS), we are ODINT Consultancy. We are here to help you in every way.

FAQ’s

The Monetary Authority of Singapore (MAS) is Singapore’s central bank as well as a central financial regulatory body. MAS is also in partnership in partnership with the financial industry to help develop Singapore as an international financial hub

The Monetary Authority of Singapore (“MAS”) is the central bank in Singapore. Its purpose is to foster sustainable economic growth that is not inflationary and to create a safe and advancing financial center.

in MAS is the central regulator and supervisor of banks in Singapore. MAS creates regulations for financial institutions, which are implemented by the law, regulations, instructions, and notices.

The legal boards include those of the Monetary Authority of Singapore (MAS) and the Civil Service College (CSC).

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