MAS to step up measures against insider trading, false trading: Ravi Menon

The city-state pays no tolerance for misconduct.

Singapore is strengthening its enforcement capacity to seize market misconducts as it is its priority to uphold trust, a key attribute for the city-state’s success as a financial hub, the central bank said.

Speaking before the Foreign Correspondents Association of Singapore, Monetary Authority of Singapore Managing Director Ravi Menon it is stepping up measures against insider trading, false trading, and front running by individuals and traders in the securities market.

“Financial institutions from all over the world come to Singapore because this is a jurisdiction they can trust. There is rule of law, clarity and consistency in regulation, rigour and fairness in supervision, and no tolerance for misconduct,” said Menon.

The central bank chief recalled that in April 2015 the government imposed a civil penalty of close to $12 million for insider trading – the highest quantum in a single case so far.

Menon also touched the issue of money laundering and financing of terrorism, which he said are forms of illicit finance.

“When it comes to anti-money laundering and countering the financing of terrorism (AML/CFT), the rules are strict and in line with international standards. Financial institutions must: know their customers; assess the risks and perform additional due diligence where the risks are higher; monitor transactions on an ongoing basis and report any suspicious activities,” Menon explained.