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91天堂原創鈥檚 global roundup of imperative regulatory developments. Your lowdown on what the world鈥檚 regulatory leaders are up to this month.
Second Stage of the Financial Services and Markets Act 2022 Takes Effect in Singapore
罢丑别听second stage of the Financial Services and Markets Act 2022 (FSMA) came into effect from May 10, 2024 in Singapore.
How does this change things?
If you are a payment service provider licensed under the Payments Services Act, not聽 much will change, as most of the existing regulation has simply been migrated over to the FSMA from the patchwork of earlier parent acts. However, the Monetary Authority of Singapore鈥檚 (MAS) powers over anti-money laundering (AML) and technology risk management have been expanded by the FSMA, so additional regulation may be released.听
If you are a crypto provider who is licensed under聽, you will now need to integrate the聽technology risk management requirements, which have been newly imposed by the MAS, in your business operations.
Key considerations
Payment service providers licensed under the Payments Services Act should take note that the circulars and notices issued by the MAS relating to聽technology risk management 补苍诲听cyber hygiene have changed.
Crypto providers licensed under聽 should begin implementing the聽technology risk management requirements imposed by the MAS to meet the November 6, 2024 deadline.
Financial institutions should also remain vigilant with regard to the changes in Singapore鈥檚 AML regime relating to the聽 and the imposition of聽.
Why should you care?
The passing of this act is a watershed moment for financial regulation in Singapore as it is the first time that a financial regulatory act of this nature has been passed without any transitory measure other than staggered implementation dates.
Previous introductions of new regulatory regimes have often involved transitory periods that have dragged on for years, such as the聽, which took effect in February 2020 but still has a number of firms operating under its transitory measures聽.听
This could be indicative of a move on the part of the MAS towards a more simplified and direct implementation practice for future legislation.
The introduction of聽, while reflective of聽 in Singapore, is likely to result in a need for additional operational and financial resources from payment service providers, especially if these schemes are implemented in addition to the MAS鈥 proposed聽shared responsibility framework.
Finally, the MAS has also recently indicated that聽 to other financial institutions, which means payment service providers may have to add to their compliance plans in the not too distant future. The sharing of AML information looks set to move beyond the shores of the island nation, with Hong Kong also currently聽, so this may well be the start of a regional or even global change in AML: reporting requirements.听
