Singapore's central bank and financial regulator detailed its actions against financial institutions (FIs) and individuals for market abuse, financial misconduct, and control breaches related to money laundering.
The Monetary Authority of Singapore (MAS) imposed S$11.7 million in civil penalties and, together with the Attorney-General’s Chambers, successfully secured the criminal convictions of nine individuals for market misconduct or related offenses.
It also imposed S$3.3 million in composition penalties for money laundering-related control breaches, and issued 25 prohibition orders against unfit representatives, according to MAS' latest «Enforcement Report,» published on Wednesday.
The report outlines various enforcement actions taken for breaches of MAS regulations and requirements from January 2019 to July 2020. The focus areas during this period included corporate disclosures, business conduct of financial advisers and their representatives, AML/CFT compliance among financial institutions, internal controls at brokerage houses, as well as insider trading.
Market Abuse
The largest civil penalty of S$11.2 million ($8.2 million) was imposed on UBS. MAS said the bank's client advisors engaged in «acts that deceived or were likely to deceive clients about the spreads or interbank prices for transactions in over-the-counter bonds and structured products.»
There were also criminal convictions on senior equity dealers with First State Investments (Singapore) and a remisier at UOB Kay Hian, who acted together in a front-running arrangement for over 7 years using price-sensitive confidential information from FSIS to trade ahead of FSIS’ orders, which made them S$8 million in profits.
Tough Enforcement
MAS said that rigorous investigation and tough enforcement are necessary to deter financial misconduct, protect consumers, and maintain investor confidence.
«As our financial sector grows in scale and sophistication, a robust enforcement regime will be critical in sustaining Singapore’s reputation as a trusted financial center,» Peggy Pao, MAS executive director (enforcement), said.
Priorities
MAS said that going forward, it would prioritize corporate disclosure breaches, and deepen its capability to proactively detect financial advisory misconduct.
It will continue to focus on FIs which lack rigorous AML/CFT systems and processes; update enforcement-related powers to better detect, investigate, and take action against misconduct; and enhance focus on senior management accountability for breaches by their FIs or subordinates.
