The Monetary Authority of Singapore (MAS) has urged private banks to reduce account opening times for new clients, aiming to strengthen the city-state’s position in the global wealth management arena. Currently, average onboarding takes six weeks or more; MAS expects this to drop to within one month by year’s end.
MAS said the improvement could be achieved by streamlining source‑of‑wealth checks. “More efficient account opening will boost competitiveness while upholding high standards,” commented Managing Director Chia Der Jiun at a UBS event.
Three years ago, a S$3 bn ($2 bn) money‑laundering case involving over ten individuals linked to a southern Chinese crime syndicate shook the industry, prompting MAS to tighten controls and impose fines for “poor and inconsistent implementation” of client‑onboarding procedures.
The heightened scrutiny led to significant delays, including an 18‑month backlog for family‑office approvals, diminishing Singapore’s advantage in attracting overseas wealth. Competitors such as Hong Kong, Dubai and Abu Dhabi have benefitted.
In a recent letter to chief executives, MAS outlined measures for simplifying onboarding, such as limiting source‑of‑wealth checks to higher‑risk assets, focusing due diligence on the highest‑risk clients, and eliminating unnecessary information requests.
MAS emphasized that the anti‑money‑laundering regime should remain risk‑proportionate, ensuring it does not unduly burden legitimate businesses and investors.
