Singapore most open to financial compliance in ASEAN

The region’s diverse economic developments and different regulators are seen as barriers.

Singapore has been identified as the most open to financial compliance amongst its Southeast Asia peers, according to a whitepaper by software company Verint.

Singapore was particularly highlighted for its interest in establishing a set financial compliance framework that covers the ASEAN region, similar to the commonality seen in Europe.

“The ten countries of Southeast Asia are a very different animal from the EU. The EU has 30,000 bureaucrats just within Brussels. ASEAN has 300. There is just not the same commitment or even interest in forging the commonality of rules. The MAS in Singapore would like to see more of that and do what it can through persuasion and encouragement. But I don’t think it goes beyond that,” a Verint leader commented.

The report noted that Asia faces challenges in compliance due to its diversity in economic development as well as differences in frameworks.

“We’re definitely seeing differences in the way that countries are reacting, based on
local regulators, how much are they enforcing? There are bigger challenges in Asia as you have multiple regulators. How do you deal with that?” another Verint representative stated.

There are, however, developments, with markets such as Singapore and Hong Kong have issued compliance guidelines for financial investment firms on improving the effectiveness of anti-money laundering (AML) and trade surveillance programs.

Verint said that data security would need to be a focus for Asia too and financial services firms would need to find creative ways to manage it whilst still maintaining profitability.

The report also highlighted the importance for leaders to consider the Asian context of their dealings and what is unique to that setting. What their customers may prioritise will affect how financial compliance strategy is aligned with the realities on-the-ground.