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

industry has taken active steps to promote robust controls to strengthen its resilience and prepare for increased transparency on beneficial ownership information and enhanced tax transparency. the private banking industry in singapore introduced a set of industry sound practices last year to provide guidance to private banks on the development and implementation of robust controls to detect and deter the proceeds of tax crimes. as most of you would know, the singapore trustees association has also issued similar guidelines for trust companies. we commend such industry initiatives and look forward to continue working in meaningful partnership with the industry. 26. competency building is also imperative in raising aml / cft standards amongst industry professionals. an effective aml / cft system cannot be solely the responsibility of compliance professionals or experts, but must be an integral part of the firm ’ s culture. besides the institute of banking and finance ( “ ibf ” ), certification providers like the international compliance training academy and the association of certified anti - money laundering specialists ( “ acams ” ) offer a suite of aml / cft courses and training programmes. such courses, where they are accredited by the ibf, are available for funding from the mas ’ financial sector development fund. so i would strongly encourage industry professionals to tap on the many resources and training avenues in order to increase knowledge and awareness of risks. bis central bankers ’ speeches conclusion 27. returning to the history of the origins of trusts. such arrangements could well have been phased out at that time if the law did not recognise them. when the crusaders returned, they often faced refusal for the return of their estate. such disputes had to be brought before the lord chancellor, who found in favour of the returning crusaders, and recognised such claims. 28. fortunately, trusts today are built on stronger foundations than the changeable favours of lord chancellors. the trust industry is based on and built on reliability and professionalism. mas partners with the industry, and will continue to do so, to further strengthen its reliability and resilience, by building a robust regime that is well - regulated, stable and trusted. this will continue to instil confidence in clients, and in our financial system. and this will keep us on the path of sustainable growth. 29. on this note, i wish all of you an engaging session and fruitful conference. thank you. bis central bankers ’ speeches