Singapore’s regulator is urging banks to monitor Myanmar’s asset flows after a coup

SINGAPORE (Reuters) – Singapore’s central bank has told financial companies to be vigilant for suspicious transactions or asset flows between the city state and Myanmar, a newsletter seen by Reuters showed, citing concerns about the potential for financial crimes.

In its February 25th newsletter, the Monetary Authority of Singapore (MAS) reminded all senior financial institution officials that due diligence of customers and appropriate risk mitigation measures were required in higher risk situations.

The move comes amid weeks of major demonstrations in Myanmar after the military seized power.

Protesters for democracy promised on Thursday that more demonstrations would be held in Southeast Asia after the United Nations claimed 38 people had been killed in the worst day of unrest since an armed coup last month.

Singapore’s position as one of the world’s leading financial institutions and as a trading center makes it particularly vulnerable to the spread of money due to large cross-border flows. Singapore has close ties to Myanmar and is one of the largest investors.

In the ring, the MAS urged financial institutions to keep timely tabs on the rapidly evolving situation in Myanmar, including unilateral sanctions imposed by other jurisdictions. .

They said the situation in Myanmar could lead to money laundering, terrorist financing and other financial crimes.

“With the developments in Myanmar, FIs are reminded to take appropriate measures to manage any risks arising from their business activities and futures relations, including reputational, legal and operational risks,” he said. am MAS.

The MAS said that financial institutions should submit and report any suspicious trading reports promptly, stating that these reports should be called “Myanmar 2021”.

In response to a Reuters question, the MAS confirmed that they had issued a newsletter on February 25 relating to the developments in Myanmar.

The newsletter was issued two days after the central bank said in a press release that their regular review of the banking system had not found large sums of money from Myanmar companies and individuals in banks in Singapore.

Singapore police use suspicious trade reports and other financial information and analyze it to detect money, terrorist finances and other serious crimes, according to an adviser on their website.