Monetary Authority of Singapore (amendment no 2) Bill 2007 passed: enhanced penalties for financial institution failing to comply with MAS direction or regulation

Francis Mok and Karen Tiah, Allen & Gledhill LLP

On 19 September 2007, the Monetary Authority of Singapore (Amendment No 2) Bill 2007 (the Bill) was read a second time in Parliament and passed. The Bill amends the Monetary Authority of Singapore Act (the Act) primarily to enhance the deterrents against money laundering and terrorist financing in the financial sector. More specifically, the penalties that may be imposed on a financial institution (FI), which fails to comply with directions issued or regulations made by the Monetary Authority of Singapore (the MAS) pursuant to ss27A and 27B of the Act will be increased tenfold. The Bill, which was introduced on 27 August 2007, has not come into force yet.