Singapore

In July 2025, the Monetary Authority of Singapore fined nine financial institutions a combined S$27.45 million for AML failures linked to a S$3 billion money laundering case, citing weaknesses in customer risk rating, source-of-wealth corroboration, and post-STR follow-up. The enforcement action signals heightened MAS scrutiny and raises expectations for AML software and controls aligned with MAS Notices 626, PSN01, PSN02, and SFA04-N02.

Singapore's CAAS has delayed the Sustainable Aviation Fuel (SAF) Levy for cargo flights to 2028, while the levy for passenger flights will start in 2027. This affects airlines and cargo operators departing from Singapore, requiring them to prepare for the levy and associated compliance.

Singapore's PDPC has issued advisory guidelines on generative AI, clarifying the Publicly Available Exception for web-scraping and requiring AI-specific notifications for consent. This signals a shift toward accountability and human oversight in AI governance, impacting organizations using AI in Singapore.

The FATF/APG mutual evaluation report identifies a critical gap in Singapore's AML enforcement, specifically insufficient targeting of organizers and facilitators behind cyber-enabled fraud. This may lead to enhanced regulatory expectations and enforcement actions for financial institutions in Singapore.

Singapore has introduced a mandatory sustainability reporting framework aligned with ISSB standards, requiring listed companies to disclose climate-related information from FY2025. Scope 3 emissions and other metrics will be phased in with built-in reliefs.

Regulators in APAC, including MAS (Singapore), AUSTRAC (Australia), and BNM (Malaysia), now require financial firms to explain and defend AI-driven decisions, not just implement controls. Firms must ensure AI models are transparent and auditable, with accountability retained internally.

The Monetary Authority of Singapore (MAS) has published an AI risk management toolkit specifically for the financial services sector. This toolkit provides practical guidance for financial institutions to identify, assess, and mitigate AI-related risks while implementing robust governance structures.

Singapore has introduced new climate risk management expectations for banks, investors, and insurers, establishing compliance requirements for financial institutions. This represents a regulatory change in the ESG domain that creates new obligations for financial sector entities operating in Singapore.

The Monetary Authority of Singapore (MAS) has finalized its Guidelines on Environmental Risk Management – Transition Planning, setting supervisory expectations for banks, asset managers, and insurers to manage climate-related transition and physical risks. Financial institutions must embed climate risk into governance structures with board oversight, integrate it into risk appetite and business strategy, and build climate data capabilities through engagement with clients and portfolio companies.

Singapore's IRAS and IMDA have announced a phased extension of the GST InvoiceNow requirement to all GST-registered businesses between 2028 and 2031. This Peppol-based e-invoicing mandate requires direct transmission of invoice data to tax authorities, with implementation tiered by business size starting with small businesses and new registrants in 2028.

Singapore's Cybersecurity (Amendment) Act 2024 has come into force, significantly expanding regulatory oversight to include third-party-owned critical information infrastructure (CIIs) and overseas CIIs. Essential service providers must now secure contractual commitments from vendors regarding security standards, information sharing, and incident reporting, with key provisions effective October 31, 2025.

Singapore Exchange (SGX) has implemented mandatory ISSB-aligned climate disclosure requirements for listed companies, including Scope 1, 2, and 3 greenhouse gas emissions reporting. The rules feature phased compliance timelines based on company size and require third-party assurance for data reliability, representing a significant ESG regulatory development in the region.