Proposed law to widen MAS' regulatory powers

Proposals to extend the Government's ability to impose Covid-19 control measures and give Singapore's central bank wider regulatory powers were among legal changes outlined in two new Bills, tabled in Parliament yesterday.

At present, the Covid-19 (Temporary Measures) Act allows the authorities to impose pandemic control measures until April 8. The proposed changes will see this extended by a year to April 8, 2023. Such measures include rules requiring people to stay at home and restrict social contact.

The Act also sets out details of the types of people - for instance, police officers or public servants - who can enforce such rules, and penalties for rule breakers.

Separately, the Monetary Authority of Singapore (MAS) could get wider regulatory powers over the financial services sector under another new Bill. This would help the central bank deal with financial sector-wide risks in a rapidly changing and increasingly integrated environment, it said.

Under the proposed law, the new powers would include prohibiting any person not deemed fit and proper from engaging in any activity regulated by MAS, and performing a prescribed list of key roles and functions in the financial sector. This broadens the categories of individuals who may be subject to prohibition orders, MAS said.

It also rationalises the grounds for issuing such orders into a single fit and proper test, and widens the scope of prohibition to cover functions like handling funds, and risk management and control.

MAS also proposes introducing enhanced regulation of virtual asset service providers, which includes those in digital payment tokens or cryptocurrencies, for money laundering and terrorist financing risks. "MAS considers all transactions relating to digital token services to carry higher inherent money laundering and terrorist financing risks due to their anonymity and speed," it said.

Also proposed is the harmonised power for MAS to impose rules on financial institutions regarding technology risk management to ensure the safety of tech systems they use to deliver financial services.

MAS also wants to provide statutory protection from liability for mediators, adjudicators and employees of an operator in an approved dispute resolution scheme.

"This will strengthen the confidence and autonomy of these individuals when they carry out their duties," MAS said.

In July 2020, MAS issued a consultation paper proposing such enhanced powers.