In wealth management, competency standards have been established for the full range of job families – from relationship management to product development to trusts and estate planning. More than 1,500 wealth management professionals have been trained to-date. A key partner is the Wealth Management Institute, set up by GIC and Temasek in 2003, to expand and develop the pool of talent and expertise for the wealth management industry in  2  BIS central bankers’ speeches  Singapore. More than half of the wealth management professionals trained under the FICS framework came through WMI’s programmes. A more recent initiative to raise competency levels for the private banking industry is the introduction of the Client Advisor Competency Standards, or CACS. This industry-led initiative provides an independent mode of assessing the private banking professional’s competency before he is allowed to provide financial advice to clients. I am pleased that WMI has given strong support for CACS. The Institute of Banking and Finance (IBF), which administers the CACS, tells me that there is already steady interest by private banks and individuals. The CACS, despite not being a regulated examination, is now being seen as a requirement for those interested in getting into the wealth management industry. This is a good sign. As Chairman of the Institute of Banking and Finance, let me set a target. In three years’ time, let us aim for all new entrants in the wealth management industry to have gone through either the industry-endorsed CACS or some formal certification programme under FICS.

In response, the international community has strengthened considerably the frameworks for anti-money laundering (AML) and counter financing of terrorism (CFT) and exchange of information on tax-related crimes. These developments will have implications for the wealth management industry globally. MAS is fully committed to safeguarding the integrity and reputation of Singapore as a clean financial centre:   One, we have a strong legal and regulatory framework on AML and CFT, in line with international standards.   Two, we have a rigorous regime of supervision to monitor compliance by financial institutions.   Three, we will strengthen cross-border co-operation to fight trans-national financial crime.   Four, we will step up vigilance against suspicious flows of funds arising from external developments. Let me give you an update on what MAS has done and will do in each of these areas. A robust legal and regulatory framework Singapore has a robust regulatory framework on AML/CFT. The key legislation is the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act, or CDSA. The CDSA makes it a crime to engage in the money laundering of benefits from a total of 417 so-called predicate offences, ranging from criminal breach of trust, to dealing with property of terrorist and market manipulation. The CDSA makes the reporting of suspicious transactions mandatory for all persons who become aware of such transactions in the course of their work. MAS gives force to the CDSA by requiring all financial institutions in Singapore to have in place an effective AML/CFT framework.