The MAS last week moved the MAS Bill for first reading in
parliament. Comments all around suggest that the rules are being tightened but
is that really true on closer inspection? Let’s have a look.
First of all, MAS has up till now issued AML/CFT notices
which are not primary legislation. The MAS Bill corrects that, but of course it
will hardly make the life of the average FI more difficult.
Secondly the AML/CFT regime is extended to stored value
facilities, non-bank card issuers and designated financial holding companies. So
that’s not really a tightening of the regulations but more extending the reach.
The third element is about sharing more information with
more external parties. This is mostly applicable to branches and subsidiaries
of foreign FI’s and means that information can be shared with home financial and
AML/CFT supervisors (if these are not the same).
Finally it sets out requirements for FI’s to perform CDD and
retain CDD records, which is hardly anything new.
Time will tell. The MAS Bill will definitively have an
impact but perhaps not as much as feared.
Rolf
