Explainers
 Last Revised Date: 04 November 2020

Enforcement Report

The Enforcement Report provides updates on enforcement matters in the financial markets, highlights key outcomes and outlines priorities for the future. It is published once every 18 months.
MAS’ enforcement approach has three aims:
  • Early detection of misconduct and breaches of laws.
  • Effective deterrence.
  • Shaping business and market conduct.

How MAS protects investors and upholds market integrity:

 Key Initiatives  
Counter potential market through broker engagement

Brokers are key partners in detecting and addressing any suspicious trading activities as they can take action to impose restrictions on customers, suspend accounts and off-board customers.

 

Objectives of broker engagement:

  • Curb undesirable trading behavior before it escalates
  • Minimise negative market impact from ongoing suspicious trading activities
  • Shape broker conduct and culture through their management of suspicious trading activities
  • Target errant players and limit their ability to benefit from undesirable behavior
  • Complement MAS' focus on deterrence through effective enforcement
Using Augmented Intelligence to detect market manipulation
  • Automate repetitive and manual processes to improve efficiency
  • Model rogue trading behavior using traits identified by human experts
  • Provide analysis and prediction during early stages of the investigation
  • Complement human decision-making abilities through Augmented Intelligence
Detect financial advisory misconduct proactively Large data sets are combined to identify potential misconduct cases using data analytics. This enables MAS to detect and investigate wrongdoings early, so that timely enforcement action can be taken against errant representatives.
Leverage data analytics to enhance supervisory effectiveness

MAS uses data analytics to sharpen and intensify AML/CFT supervision over FIs and activities with higher ML/TF risks.

 

This includes:

  • Network analysis on suspicious transaction reports
  • Analytics-driven supervisory probes
  • Thematic examinations of higher risk activities

Looking Ahead

The enforcement priorities in 2020/2021 include the following:

  • pursue serious and complex cases of disclosure breaches;
  • deepen capability to proactively detect potential mis-selling of financial products;
  • continue to focus on FIs which lack rigorous systems and processes for combatting money laundering and countering terrorism financing;
  • update enforcement-related powers to better detect, investigate and take action against misconduct; and
  • enhance focus on senior management accountability for breaches by their FIs or subordinates.