MAS aims to reach conclusion on Noble Group matter by Q3; investigations into Hyflux, EHT still ongoing

THE Monetary Authority of Singapore (MAS) has provided updates on the investigation of ongoing high-profile cases in its bid to provide greater transparency on ongoing efforts.

This is among actions taken by the MAS to strengthen its enforcement against financial institutions and individuals for breaches of laws and regulations it administers, MAS said in its enforcement report published on Wednesday (Apr 27).

The report, published every 18 months, provides updates on enforcement matters in the financial markets and outlines future priorities. Wednesday’s report covers the period July 2020 to December 2021.

Of the major cases mentioned, MAS said investigations into commodities trader Noble Group for potential breaches is in advanced stages, and that the authorities aim to reach a conclusion in the third quarter of this year.

Meanwhile, it said the authorities were working closely with the Attorney-General’s Chambers to review Hyflux's statements between 2011 and 2018 for potential offences. Water treatment firm Hyflux had gone into liquidation after it failed to negotiate restructuring plans with potential investors.

For Eagle Hospitality Trust, which had defaulted on a loan and is now in the process of liquidating various entities, MAS noted investigations were still ongoing due to the number of suspects and the complex issues involved. However, it added that authorities have seized numerous documents and interviewed acquainted parties.

MAS is also reviewing documents and interviewing acquainted parties in Hai Xun Asset Management’s case, to identify any governance or risk management failures. The fund manager, then known as Envysion Wealth Management, had been hit by businessman Ng Yu Zhi’s allegedly fraudulent nickel trading scheme, which was said to have raised at least S$1 billion from investors.

In the covered period, MAS said it imposed a total of S$2.6 million in financial penalties, of which S$2.4 million was in composition penalties on 4 financial institutions for anti-money laundering and terrorism financing control breaches.

It also imposed S$150,000 in civil penalties and issued 20 prohibition orders against unfit representatives.

Additionally, in the period, MAS noted that it had proposed to expand its powers in issuing prohibition orders in Parliament, as well as consulted on proposals to strengthen its investigative powers under MAS-administered acts.

MAS executive director (enforcement) Peggy Pao said: “We will continue to improve our processes to uphold Singapore's reputation as a trusted financial centre that takes a tough approach to financial crime and misconduct.”

As for its priorities in 2022 and 2023, MAS said it would look into enhancing investors’ recourse for losses from securities market misconduct, as well as focus on corporate finance advisors and fund managers that breach business conduct requirements.

It also plans to focus on holding senior managers accountable for breaches by their financial institutions or subordinates, and continue to boost efforts to pursue breaches of corporate disclosure requirements.

The enforcement matters exclude actions from investigations led by the Commercial Affairs Department (CAD) in the MAS-CAD joint investigation arrangement.