In fact, G20 members last month, endorsed the implementation of AEOI and promised to do so by end-2018. The AEOI Standard requires financial institutions in one jurisdiction, with customers who are tax  BIS central bankers’ speeches  3  resident in another jurisdiction, to automatically provide the tax-relevant customer information on a regular basis, to the customers’ home tax authorities. Singapore’s approach to enhanced tax transparency 21. The global trend on enhanced tax transparency is in line with Singapore’s commitment to combat cross-border tax offences, in order to protect our integrity and reputation as an international financial centre. We have taken several significant steps to strengthen our EOI framework, such as entering into international agreements and making the relevant legislative amendments to facilitate international cooperation. 22. In May, Singapore joined the G20, EU, OECD member jurisdictions as well as other financial centres in endorsing the OECD’s “Declaration on Automatic Exchange of Information In Tax Matters”. Endorsing this Declaration demonstrates Singapore’s commitment towards enhancing international tax compliance. This Declaration is consistent with our principles for AEOI: (i)  Firstly, implementation must be done under a robust framework of law so as to maintain confidentiality and legitimate use of information exchanged;  (ii)  Secondly, there must be reciprocity in terms of the scope of information exchanged between jurisdictions; and  (iii)  Thirdly, AEOI must be endorsed and implemented among all financial centres to provide a level playing field. 23.

The proposed amendments drew reference from the revised FATF Recommendations and international best practices, so as to take into account latest global developments and incorporate emerging best practices. Some of these amendments relate to enhanced transparency on beneficial ownership information. MAS is currently reviewing the feedback from the private sector and will also be looking at updating the MAS Notice on AML/CFT for licensed trust companies. Continual review of our policies and guidelines, in consultation with industry stakeholders such as yourselves, remain the bedrock of our regulatory approach. It makes sure that Singapore’s regulatory regime is in line with international standards, while at the same time taking into account industry feedback to facilitate practical implementation. Increased momentum towards tax transparency 18. Turning now to tax transparency. 19. To combat cross border tax evasion, the G20 endorsed Article 26 of the OECD Model Tax Convention on Income and Capital to be the global standard for Exchange of Information (“EOI”) for tax transparency, in 2009. This provided for bilateral EOI-on-request, where a jurisdiction may request from another jurisdiction information on its tax payer that is foreseeably relevant to its determination of whether the tax payer has evaded taxes. 20. Following that, there has been strong progress towards enhanced tax transparency – most recently, the G20 and OECD advocated the adoption of AEOI as the new global standard for tax transparency (the “AEOI Standard”), and urged all jurisdictions, including all financial centres, to implement the AEOI Standard swiftly.