Application of Same Regulatory Standards Required for Opening of Bank Accounts to External Asset Managers

Mr Don Wee asked the Prime Minister (a) whether the same stringent regulatory standards will apply to external asset managers as currently required of banks, for the opening of bank accounts; and (b) what is the risk of regulatory arbitrage by external asset managers occurring.

Mr Tharman Shanmugaratnam (for the Prime Minister): The Monetary Authority of Singapore imposes on external asset managers the same stringent regulatory standards for anti-money laundering and countering the financing of terrorism that it imposes on banks. Like banks, external asset managers are required to verify the identity of their customers, establish the sources of wealth and funds of higher-risk customers, and monitor customers' transactions on an ongoing basis, to ensure that these are legitimate. There is, thus, no regulatory arbitrage.