But in order to maintain high standards in the industry, Xu Fangda emphasized that financial institutions still need to complete necessary reviews in accordance with regulatory requirements. What the HKMA can do is to make clearer the requirements and expectations of regulatory authorities.
Xu Fangda visited DBS Group headquarters on Wednesday (July 9) to learn about the bank's wealth management business and communicate with several relationship managers of private banking business.
If our country wants to continue to maintain the advantages of a trustworthy financial center and seize new development opportunities, Xu Fangda, Minister of Development and Vice Chairman of the Singapore Monetary Authority, believes that Singapore must bear moderate risks, rather than zero risk practice.
He later told the media: "The wealth management industry has leveraged Singapore's advantages as a trustworthy financial center. We hope that this industry can maintain high standards while providing convenient services to their customers."
Xu Fangda pointed out that the HKMA has been working closely with the financial industry to explore how to achieve a good balance between these two different goals. For example, in the past, it took as long as 12 months to apply for tax incentives in our family finance offices, but now most applications have been shortened to three months. The authorities are also working with private banks to look at how to further reduce the time required for customers to open accounts.
In response to media questions, international financial institutions were punished. Xu Fangda said: "When we handle regulatory cases, we will fairly and objectively evaluate the severity of different illegal acts, which has nothing to do with the local or international financial institutions being investigated, but rather the negligence and nature, scope and severity of the violations they committed."
Xu Fangda said: "We want to work closely with the industry because in the current more uncertain global environment, many people believe that Singapore is a stable and trustworthy hub, and they can develop long-term plans to start wealth management business in Singapore, make new investments or seize new business opportunities."
Last Friday (4th), the HKMA completed a two-year investigation into financial institutions involved in the Fujian money laundering case. Nine financial institutions were fined 27.45 million yuan by the Singapore Monetary Authority for violating the anti-money laundering regulations. This is the second highest fine on the financial industry for violating the Anti-Money Laundering Ordinance after a financial institution involving a case involving Malaysia Development Co., Ltd. (1MDB, referred to as 1MDB) was fined RMB 29.1 million.
He believes that stability and security are the advantages of Singapore. "But we need to be willing to take certain risks and accept moderate risks, not zero risk. If we are too conservative, I don't think we will be able to seize new opportunities."