harder to do so later, when growth might be weaker, interest rates higher, and property prices lower. stringent efforts to ensure singapore ’ s financial centre remains clean and trusted next, let me touch on the efforts we have been making to ensure that singapore remains a clean and trusted financial centre. • there has a growing concern internationally on the use of financial centres to hide illicit funds or evade taxes. singapore takes seriously the integrity of its financial centre and is fully committed to international efforts to combat money laundering and tax evasion. the policy measures singapore has taken on this front well - known ; so i will not elaborate. • laundering proceeds of tax evasion and tax fraud is now a crime in singapore, effective 1 july. financial institutions are required to conduct customer due diligence to deter and detect proceeds from serious foreign tax offences, even if they are not offences in singapore. • we will automatically extend exchange of information ( eoi ) assistance in accordance with oecd standard to all existing avoidance of double tax agreement ( dta ) partners without the need for negotiation. • we signed the oecd multilateral convention on mutual administrative assistance in tax matters. bis central bankers ’ speeches what is less well - known is the rigorous supervisory regime in place to combat financial crime. mas ’ approach is preventive. • we seek to identify control weaknesses early so that financial institutions can strengthen their processes and prevent attempts to launder money or finance terrorism. • this is more effective than punishing financial institutions only after actual acts have been committed and detected. our coverage is comprehensive. • over last three years, mas conducted total of 108 anti - money laundering / countering the financing of terrorism ( aml / cft ) inspections covering banks, insurance companies, money changers, remittance agents, and licensed intermediaries. • financial institutions have enhanced aml / cft controls over the years, and most have in place the necessary policies, procedures and controls to combat money laundering and terrorism financing. financial institutions with control deficiencies are firmly dealt with. • • example : – a bank which facilitated ship - closing transactions, did not conduct adequate due diligence on the final identity of buyers behind these transactions. – mas ordered the bank to commission an independent audit of its aml / cft controls. – the audit uncovered serious control weaknesses and compliance failures. – mas imposed a composition sum of s $ 350, 000 on the bank. – the bank has since beefed up its control

summary of an article entitled risk disclosure by financial institutions published in the bank of japan quarterly bulletin of february 1997 bank of japan, communication, 28 / 2 / 97. introduction public disclosure by financial institutions has long provided information about business performance through the publication of financial statements. in recent years, however, a number of financial institutions have come to focus on disclosure of a wider range of information, including their management policies. this is partly attributable to the expansion of derivatives transactions, which has made risk management techniques increasingly important in the management of financial institutions, and which has thereby encouraged financial institutions to improve such techniques. accordingly, individual financial institutions have been motivated to reveal voluntarily their risk exposures and risk management methods in order to win a favorable assessment from market participants. disclosure thus brings into play a check mechanism inherent in financial markets ( hereafter referred to as the market check mechanism ) that disciplines management of financial institutions, and thereby helps to enhance the efficiency and transparency of the markets and to stabilize the financial system. this report examines the disclosure of information on risks of financial institutions, with an overview of the current practices and future issues. it is intended to serve market participants, the beneficiaries of the information disclosed.