Date: For Parliament Sitting on 9 May 2023

Name and Constituency of Member of Parliament

Mr Don Wee, Chua Chu Kang GRC

Question: 

To ask 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.

Answer by Mr Tharman Shanmugaratnam, Senior Minister and Minister in charge of MAS:

1. MAS 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.

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