MAS partners with India’s IFSCA to drive cross-border fintech innovation
As part of an ongoing effort to promote regulatory cooperation, the Monetary Authority of Singapore (MAS) and the International Financial Services Centers Authority (IFSCA) have entered into a FinTech Co-operation Agreement (CA). Announced on 18 September 2022, the partnership builds on the Memorandum of Understanding on supervisory cooperation signed between MAS and IFSCA earlier this year.
In a statement delivered at the CA signing, MAS and IFSCA announced that CA will promote regulatory sandbox collaboration and information sharing. It will also encourage participation in joint innovation ventures and facilitate discussions on upcoming FinTech issues.
The objectives of the cooperation agreement
By leveraging existing regulatory sandboxes in their respective jurisdictions, MAS and IFSCA aim to support new technology innovations. Under the partnership, both authorities will be able to refer innovative businesses to each other’s regulatory sandboxes and facilitate creative cross-border experiments across both jurisdictions.
In addition, the CA will allow MAS and IFSCA to analyze the suitability of use cases that could benefit from cross-border cooperation and invite relevant jurisdictions to participate in a Global Regulatory Sandbox.
Described by MAS’s Chief FinTech Officer, Sopnendu Mohanty, CA as a “FinTech bridge”, CA also enables MAS and IFSCA to share non-regulatory information and developments on innovation in financial products and services.
Forge new growth paths
The partnership between MAS and IFSCA follows MAS’s Financial Services Industry Transformation Map (ITM) 2025 launch on 15 September 2022. In ITM, MAS presented its growth strategies to further develop Singapore as a leading international financial center in Asia – connecting global markets, supporting Asia’s development and serves Singapore’s economy.
Among ITM’s five pillars of growth is enhancing capabilities in asset classes where Singapore plays a key regional or global role. One of the asset classes listed in the ITM refers to FinTech start-ups, especially those operating in Web 3.0, artificial intelligence and green FinTech. Through CA, innovation in these areas is likely to be prioritized due to the industry’s ability to “leverage technology to innovate, better manage risks, increase speed and reduce costs, and create new opportunities for growth.”
Important takeaways
Through regulatory sandbox collaboration and non-regulatory information sharing, CA is designed to reduce the risk of FinTechs working in silos and viewing customers and transactions in isolation. Ultimately, this risks missing a bigger picture of criminal activity that may go unnoticed.
Compliance teams within FinTechs looking to improve data sharing procedures should consider the additional resources provided by the FATF, some of which include:
In a statement delivered at the CA signing, MAS and IFSCA announced that CA will promote regulatory sandbox collaboration and information sharing. It will also encourage participation in joint innovation ventures and facilitate discussions on upcoming FinTech issues.
The objectives of the cooperation agreement
By exploiting existing regulatory sandboxes in their respective jurisdictions, MAS and IFSCA aim to support new technology innovations. Under the partnership, both authorities will be able to refer innovative businesses to each other’s regulatory sandboxes and facilitate creative cross-border experiments across both jurisdictions.
In addition, the CA will allow MAS and IFSCA to analyze the suitability of use cases that could benefit from cross-border cooperation and invite relevant jurisdictions to participate in a Global Regulatory Sandbox.
Described by MAS’s Chief FinTech Officer, Sopnendu Mohanty, CA as a “FinTech bridge”, CA also enables MAS and IFSCA to share non-regulatory information and developments on innovation in financial products and services.
Forge new growth paths
The partnership between MAS and IFSCA follows MAS’ Financial Services Industry Transformation Map (ITM) 2025 launch 15 September 2022. In ITM, MAS presented its growth strategies to further develop Singapore as a leading international financial center in Asia – connecting global markets, supporting Asia’s development and serving Singapore’s economy.
Among ITM’s five pillars of growth is enhancing capabilities in asset classes where Singapore plays a key regional or global role. One of the asset classes listed in the ITM refers to FinTech start-ups, especially those operating in Web 3.0, artificial intelligence and green FinTech. Through CA, innovation in these areas is likely to be prioritized due to the industry’s ability to “leverage technology to innovate, manage risk better, increase speed and reduce costs and create new opportunities for growth.”
Important takeaways
Through regulatory sandbox collaboration and non-regulatory information sharing, CA is designed to reduce the risk of FinTechs working in silos and viewing customers and transactions in isolation. Ultimately, this risks missing a bigger picture of criminal activity that may go unnoticed.
Compliance teams within FinTechs looking to improve data sharing procedures should consider the additional resources provided by the FATF, some of which include:
Originally published September 22, 2022, updated September 22, 2022
