In a move signaling increased scrutiny, the Monetary Authority of Singapore (MAS) recently released its newest Enforcement Report. The document outlines various actions taken against financial institutions and individuals, ranging from market abuse to anti-money laundering violations. In eighteen months, the watchdog imposed a total of $20 million in civil and financial penalties.

MAS Publishes Enforcement Report

The report, which covers the period from January 2022 to June 2023, highlights several key points. First, MAS has taken decisive action against four financial institutions over their interactions with individuals linked to Wirecard and the Noble Group Limited. This also extends to action against individuals associated with Three Arrows Capital.

According to the press release, with newly added features, the report provides deeper insight into MAS's enforcement activities and aims to maintain Singapore's reputation as a secure financial center.

"MAS has taken strong enforcement actions and deepened relationships with our partners to uphold the integrity and reputation of Singapore as a trusted financial center," Peggy Pao, the Executive Director of Enforcement at MAS, commented.

Financial penalties were another focal point of the report. It revealed that $7.10 million in composition penalties were issued for anti-money laundering breaches and $12.96 million in civil penalties for market abuse. To deter further misconduct, 18 prohibition orders were issued against fraudulent companies and their representatives.

Beyond these actions, the report marked a milestone in collaborative effort between MAS and Singapore's Police Force's Commercial Affairs Department (CAD). Together, they achieved 39 criminal convictions for market misconduct and related offenses, illustrating the impact of their joint investigations.

The regulator summarized the recent MAS activities in the form of an infographic:

The MAS is not the only regulator that recently published its enforcement report. In 2022, the Cypriot CySEC checked 837 entities and imposed financial penalties of €2.9 million. During the same period, the British FCA warned of 1,800 potential financial crimes and increased staffing by 1,000 people to better combat dishonest companies and actors.

Future Regulatory Priorities, including Crypto

MAS has set its enforcement agenda for the next two years, focusing on the rapidly growing digital asset space. It aims to work in tandem with foreign regulators and law enforcement agencies to share critical information on misconduct within the digital asset ecosystem.

This is a response to the collapse last year of FTX's exchange and the international regulatory issues that Binance is grappling with. Over the past few months, markets also experienced a significant decline in the value of popular cryptocurrencies such as Bitcoin and Ripple, which the regulator has noted.

Moreover, asset and wealth managers are advised to stay compliant with existing laws, particularly in the realms of business conduct and anti-money laundering. Senior managers could be held accountable for any lapses in their institutions' compliance.

"Even as the novelty and complexity of our cases increase, we will continue to administer an effective and fair enforcement regime in order to deter misconduct, protect consumers and maintain investor confidence," Pao concluded.