The Monetary Authority of Singapore (MAS) has defined several fit and proper criteria that individuals and entities must meet to obtain and maintain their licenses to operate in the financial sector. These criteria are intended to ensure that only competent and trustworthy individuals and entities are allowed to operate in the financial sector and to protect the interests of customers and stakeholders. The fit and proper criteria include:
- Competence: The individual or entity must have the necessary qualifications, skills, and experience to perform their roles effectively and efficiently.
- Character and integrity: The individual or entity must have a good reputation, be honest, reliable, and trustworthy, and must not have any history of fraudulent or dishonest behaviour.
- Financial soundness: The individual or entity must have a sound financial position and must not be in financial distress or have a history of financial impropriety.
- Compliance with laws and regulations: The individual or entity must comply with all relevant laws and regulations, including those relating to anti-money laundering, counter-terrorist financing, and sanctions.
- Fit and proper culture: The individual or entity must foster a culture of compliance, integrity, and ethical behaviour, and must have appropriate systems and controls in place to ensure compliance with the fit and proper criteria.
MAS conducts ongoing assessments of individuals and entities to ensure that they continue to meet these fit and proper criteria. MAS also has the power to revoke or suspend licenses if an individual or entity is found to have breached the fit and proper criteria or is no longer fit and proper to operate in the financial sector.