- POSTED: 04 Oct 2013 20:30
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The Monetary Authority of Singapore has proposed to be granted the power to issue prohibition orders in the banking sector.
SINGAPORE: The Monetary Authority of Singapore (MAS) has proposed to be granted the power to issue prohibition orders (POs) in the banking sector.
This will enable the central bank to prevent individuals or corporations it deems unfit and improper from participating in banking activities.
MAS looks at characteristics like integrity, competence and financial soundness when considering a person's fitness and propriety.
POs may specifically prevent the person from assuming roles in management or directorship, or becoming a substantial shareholder of a bank.
They are intended for the most severe circumstances, where misbehaviour leads to the erosion of trust in the individual.
Any breach of a PO will be punishable by a fine of up to S$125,000, or three years of imprisonment, or both, for individuals, and a fine of up to S$250,000 for corporations.
MAS currently has the power to issue POs in capital markets, financial advisory and insurance intermediation activities, but not in banking business.
The central bank has issued a consultation paper on the matter, which is available on the MAS website, and invites members of the public to submit comments by November 4.