as trust companies and banks, are doing their part in complying with the relevant aml / cft regulations to collect beneficial ownership information. singapore ’ s approach to increased transparency on beneficial ownership 14. let me now share with you singapore ’ s position on increased transparency on beneficial ownership. 15. we believe that increased transparency on beneficial ownership is consistent with continued strong growth in the trust industry. conversely, singapore ’ s reputation as a dynamic trust centre could easily be tainted by just one or two incidents where proceeds derived from illicit activities are found to be linked to trust companies or trusts in singapore because of inadequate due diligence. 16. there are several ways to enhance transparency of beneficial ownership for trusts. singapore ’ s approach has been to strike a balance between protecting the legitimate need for confidentiality, while ensuring that this protection is not abused for illegitimate purposes. this is consistent with our approach taken with regard to tax crimes. let me elaborate. 17. besides the current framework we have put in place for the regulation of trust companies, mas also regularly reviews our aml / cft regime. we issued in july 2014 a public consultation on proposed amendments to the mas notice on aml / cft for financial institutions. 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

deposits they collect, capital market intermediaries are required to segregate customers ’ assets from their own monies. this acts as a safeguard for customers ’ funds should the intermediary fail. fund managers are required to appoint independent custodians and fund valuation firms, and be subject to regular audits. bis central bankers ’ speeches market conduct the second regulatory outcome we expect from intermediaries is fair conduct. trades that give a false or misleading appearance of market activity, actions to rig the prices of securities or futures, are all prohibited under our law and severely dealt with. mas works closely with the commercial affairs department to take enforcement actions ranging from civil penalties to criminal action. last year saw the fruition of mas ’ first civil penalty court action. we secured civil penalties against a fund manager who was found by the high court to have window - dressed his portfolio by creating a false appearance relating to the price of one of the component shares. the fund manager and its ceo were ordered to pay a civil penalty of s $ 250, 000 each to mas, as well as costs of the court action. the decision was upheld by the court of appeal. the assistance that we sought, and obtained, from our foreign counterparts was vital to our success in this case. similarly, mas stands ready to assist our international counterparts in their enforcement efforts. earlier this year, the australian authorities successfully prosecuted a former fund manager of an australian bank for insider trading. mas had referred this case to the australian securities and investment commission ( asic ) and provided ongoing assistance during asic ’ s investigations. infrastructure – sound and stable the final component of the capital market ecosystem is the infrastructure that supports the trading of securities and futures. capital market participants trade either on a multilateral basis through organised exchanges, or bilaterally with each other over - the - counter or otc. exchanges the singapore exchange and the singapore mercantile exchange operate the systemicallyimportant securities and futures markets in singapore. they constitute critical infrastructure that must function properly to preserve stability and efficiency. our laws require the exchanges to maintain sufficient financial, human and system resources, have frameworks and processes to manage their risks, and to regulate and supervise their participants. otc derivatives the otc derivatives space has traditionally been the preserve of sophisticated financial institutions which are well placed to assess and negotiate trades among themselves. these financial institutions are regulated by mas and the risks associated with their otc derivatives positions are taken into account under the respective regulatory frameworks for these