Keep abreast of Ukraine news, report suspicious transactions: MAS tells banks

THE Monetary Authority of Singapore (MAS) has urged financial institutions to keep abreast of developments in Ukraine and report any suspicious transactions and fund flows.

In a circular issued to chief executive officers of all financial institutions (FIs) on Monday (Feb 28), MAS said FIs should take appropriate measures to manage any reputational, legal and operational risks arising from business activities and customer relationships affected by the unilateral sanctions other jurisdictions have imposed against Russia.

Where appropriate, FIs are also to file suspicious transaction reports and promptly flag such transactions to MAS, the authority said.

"The developments relating to Russia and Ukraine could also give rise to money laundering, terrorism financing, and other financial crime concerns. FIs should thus continue to monitor all transactions and fund flows, and stay vigilant to suspicious transactions and fund flows," MAS said in the circular.

On Monday, Singapore's Minister of Foreign Affairs Vivian Balakrishnan announced that Singapore would impose sanctions on Russia for its invasion of Ukraine, including blocking certain Russian banks and financial transactions connected to Russia.

The specific measures are being worked out and will soon be announced, the minister had said.

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This is a rare move for Singapore, which seldom imposes sanctions on other countries in the absence of binding United Nations Security Council decisions or directions.

MAS on Monday also cautioned FIs of a rise in cyberattacks globally, noting that international actions such as financial sanctions could escalate such attacks.

FIs must take "active steps" to bolster their cyber defences, such as stepping up security monitoring and adequately staffing their cybersecurity operations and incident response teams, MAS said in a separate circular.

The institutions should also closely monitor online and messaging channels for falsehoods and misinformation that "may impact the reputation of your institution or diminish confidence in your institution's ability to function normally".