Compliance Corner: MAS, Asiaciti Trust

Editorial Staff

24 July 2020

did not implement adequate AML/CFT policies and procedures, and did not subject its AML/CFT controls to independent audits. These failings hindered ATSPL’s ability to detect and mitigate ML/TF risks associated with its higher-risk customers,” MAS said.

“Financial institutions must play their part in detecting and disrupting attempts to abuse our financial system for illicit purposes. Trust companies are required to implement robust AML/CFT controls, with policies and processes that effectively mitigate risks from vehicles or trust structures of customers . MAS will not hestitate to take action against FIs that fail to meet the standard required under our AML/CFT regulations,” Loo Siew Yee, assistant managing director (Policy, Payments & Financial Crime), MAS, said.

The Singapore regulator has cracked down on such failings in recent years. Most dramatically, it kicked Falcon Private Bank and BSI, the private banks, out of the Asian jurisdiction about five years ago over failings linked to illicit funds funnelled via Malayisa’s .

The saga is another reminder of how AML and related controls are a major pain point for the world’s wealth management industry, spawning fintech and related firms such as smartKYC to alert bankers and others about potential problems. (See an interview here.)

In its statement, Asiaciti Trust said: “These isolated AML/CFT control and procedural issues have been fully addressed, and since 2018, the Singapore office’s new management team has enhanced internal compliance and governance systems to fully meet the requirements. We are pleased to have resolved this matter with the MAS and look forward to continuing to provide the exceptional client service, responsiveness and independence that we have always been known for.”

MAS added that its penalty took into account the firm’s response to MAS’ findings. “ATSPL has taken remedial measures to address the deficiencies identified by MAS, including conducting a review of customer accounts and transactions, terminating a number of higher-risk trust accounts and filing suspicious transaction reports,” it said.