Legal Updates for December 2023Tackling New Challenges in Cybersecurity – CSA Issues Public Consultation on Draft Cybersecurity (Amendment) Bill
The cybersecurity landscape is constantly shifting, with new threat factors emerging at an ever-accelerating rate. To keep Singapore’s legislative framework up to date, the Cybersecurity Agency of Singapore ("CSA") has introduced the draft Cybersecurity (Amendment) Bill (“Draft Bill”). The Draft Bill seeks to update the Cybersecurity Act to ensure that Singapore’s cybersecurity laws remain fit-for-purpose, and capable of addressing the emerging challenges.
In particular, the Draft Bill recognises the importance of entities in charge of key digital infrastructure other than Critical Information Infrastructure, and seeks to safeguard these entities by increasing oversight over their cybersecurity and requiring compliance with minimum standards. Such entities may include cloud service providers and data centre operators.
CSA has issued a public consultation seeking views on the Draft Bill. The public consultation is open until 15 January 2024. This Update provides a summary of the Draft Bill and highlights the key proposed amendments.
新加坡全球商业投资者计划 (Global Investor Programme)
“全球商业投资者计划” (即GIP计划) 是新加坡经济发展局于2004年推出的一项投资移民计划，面向拥有丰富的商业记录和成功的创业背景，并有意在新加坡推动其业务和投资增长的投资者。作为新加坡最受瞩目的投资移民计划之一，自推出以来一直与时俱进，经历了数次改革和调整。本文是对2023年8月最近一次调整后的GIP计划的相关政策解读。若您对该计划或其他新加坡投资、移民计划有任何疑问，欢迎随时与我们联系。
MAS Encourages ESG Rating and Data Product Providers to Adopt Code of Conduct
The finalised Code of Conduct for ESG Rating and Data Product Providers ("Code") and an accompanying Checklist for providers to self-attest their compliance to the Code were published by the Monetary Authority of Singapore on 6 December 2023. The voluntary Code aims to set out baseline industry standards for transparency in methodologies and data sources, governance, and management of conflicts of interest that may compromise the reliability and independence of the products. This Update gives you a snapshot of what to expect under this Code, along with our comments.
Financial Sector to Expect Generative AI Risk Framework
Generative Artificial Intelligence ("GenAI") systems pose risks that go beyond those of "traditional" AI and potentially extend beyond the scope of the current Monetary Authority of Singapore ("MAS")'s Fairness, Ethics, Accountability and Transparency (FEAT) Principles concerning the responsible use of Artificial Intelligence and Data Analytics. To address this, MAS, financial industry participants and technology partners have collaborated on Project MindForge to develop a risk framework for the responsible use of GenAI for the financial sector. MAS announced on 15 November 2023 that Phase One of the project has successfully concluded with the development of a comprehensive GenAI risk framework as well as a platform-agnostic GenAI reference architecture.
This Update highlights the key aspects of the GenAI risk framework that financial institutions and players in the technology sector should look to incorporate in their policies, procedures, and frameworks for the responsible use of AI, along with our comments and how Rajah & Tann can help you successfully navigate the myriad of issues concerning GenAI within the legal, regulatory and technical risk frameworks to meet your business' needs.
Fostering Cross-Border AI Deployment – Singapore and US Launch AI Cooperation and Standards Equivalency Efforts
While the adoption of artificial intelligence ("AI") technology by governments and businesses has been swift and widespread, there remain certain barriers to the implementation of AI solutions, particularly in the cross-border context. In this regard, Singapore and US have taken an important step towards cooperation and technical standards equivalency on the AI front. The inaugural US-Singapore Dialogue on Critical and Emerging Technologies ("CET") aims to upgrade the bilateral partnership between the countries on the frontiers of scientific and technological enterprise.
Singapore and US intend to anchor the CET Dialogue and corollary lines of efforts in certain key areas, one of which is AI. The launch of these efforts signals a move towards the development of easier and faster bilateral cross-border deployment of AI technology between Singapore and US. In this Update, we look at the key features of the US-Singapore CET Dialogue in the area of AI, what it means for businesses in this field, and our role in facilitating the utilisation of relevant opportunities in terms of legal and compliance issues.
Defining Green and Transition Activities with the Singapore-Asia Taxonomy and Accelerating Coal Phaseout with Transition Credits at COP28
At the COP28 Singapore Pavilion Finance Day on 3 December 2023, Monetary Authority of Singapore launched the first version of the Singapore-Asia Taxonomy for Sustainable Finance ("Singapore-Asia Taxonomy") and a Transition Credits Coalition (TRACTION), among other transition financing initiatives. The present Singapore-Asia Taxonomy is finalised following four rounds of public consultations, since January 2021, and focuses on climate change mitigation, which is one of the five environmental objectives intended to be addressed. The Singapore-Asia Taxonomy also provides a credible framework to phaseout coal-fired power plants, by setting out both entity and facility-level criteria that are aligned to a 1.5 degree Celsius scenario.
This Update gives you a snapshot of the key features of the Singapore-Asia Taxonomy and salient highlights of Singapore's coal phaseout plan using transition credits.
The Shape of Things to Come – Singapore Unveils National AI Strategy 2.0
The meteoric rise of artificial intelligence ("AI") has been one of the loudest headlines of the past year, with the initial hype quickly translating into real-world impact. As governments and businesses race to fully explore and adopt AI solutions, industry stakeholders have begun looking further into the future of AI.
The Singapore Government has been at the forefront of the AI movement, issuing its first National AI Strategy in 2019. With the rapidly changing landscape of AI technology, Singapore has now launched its National AI Strategy 2.0 (“NAIS 2.0”) on 4 December 2023, which introduces key shifts to propel Singapore as a leader in the field of AI. The wide-ranging strategy in the NAIS 2.0 sets out 15 actions that Singapore will undertake across the identified Systems and Enablers to support Singapore’s AI ambitions over the next three to five years. This includes efforts to intensify AI adoption across industries, ensure a trusted regulatory environment, and the establishment of both human and physical infrastructure (such as AI training programmes and data centres).
This Update highlights the key actions and features of the NAIS 2.0 and what it means for AI development, adoption and regulation in Singapore in the coming years.
Regional Competition Conference 2023 Podcast Series – Panel 5
We are excited to bring you the grand finale of our thought-provoking discussions from our Regional Competition Conference!
In the rapidly evolving landscape shaped by technology and the post-COVID 19 trade environment, our final panel, "Ecommerce meets the reality of moving goods across borders – When Trade Moves from Physical to the E-world, what are the Trade, Customs, Consumer Protection and Other Regulatory Issues to deal with?," delves into the intricate challenges businesses face when navigating the intersection of e-commerce and traditional trade practices.
- How is customs declaration managed?
- What are the export control implications especially as regards intangible technology transfer?
The panel provides practical guidance in addressing these questions and more, sharing real cases to guide businesses on their journey.
As we wrap up this podcast series, we extend our heartfelt gratitude for your continued support. We look forward to welcoming you at our Regional Competition Conference next year!
Click to listen to this podcast.
The Rajah & Tann Asia Competition & Antitrust team remains engaged and up to date with the ever-evolving landscape of competition law in the region. Please reach out to us if you wish to further discuss these developments.
MAS Seeks Feedback on Requirements on FI-FI Information Sharing under COSMIC for AML/CFT
The Financial Services and Markets Act 2022 was amended earlier this year to, among other things, establish a new electronic information sharing system, Collaborative Sharing of money laundering ("ML") / terrorism financing ("TF") Information & Cases ("COSMIC"). COSMIC enables the secure disclosure, publication and sharing of risk information by prescribed financial institutions (i.e. banks in Singapore or financial institutions (other than a bank) that are prescribed under subsidiary legislation) ("prescribed FIs") for the prevention and detection of ML, TF and proliferation financing ("PF"). As a start, COSMIC will focus on three key financial crime risks in commercial banking: (i) misuse of legal persons; (ii) misuse of trade finance for illicit purposes; and (iii) PF. A prescribed FI must comply with certain requirements when sharing information on COSMIC. MAS proposes setting these out in a new Notice ("COSMIC Notice") and issued a consultation paper to seek feedback on this. Banks in Singapore are subject to AML/CFT requirements under MAS Notice 626 on the Prevention of Money Laundering and Countering the Financing of Terrorism – Banks ("MAS Notice 626"). MAS also seeks feedback on amendments to MAS Notice 626 to clarify the relationship and interaction between certain requirements in the COSMIC Notice and the existing AML/CFT requirements in MAS Notice 626. Feedback should be submitted by 15 December 2023.
This Update outlines key requirements under the proposed COSMIC Notice.
Digital Payment Token Service Providers to Comply with Enhanced Regulatory Measures from 2024
In Singapore, cryptocurrencies are generally regulated as digital payment tokens ("DPTs") under the Payment Services Act 2019 ("PS Act"). Currently, DPT service providers ("DPTSPs") are regulated under the PS Act primarily for anti-money laundering and countering the financing of terrorism (AML/CFT) risks, and technology and cyber risks. To reduce the risk of consumer harm in cryptocurrency trading, in October 2022, MAS issued the Consultation Paper on Proposed Regulatory Measures for Digital Payment Token Services to seek comments on its proposals, among other things, to introduce consumer access measures for retail customers of DPTSPs, business conduct measures and enhanced measures to manage technology and cyber risks for DPTSPs. On 23 November 2023, MAS issued Part 2 of its response to feedback received on the proposals in the Consultation Paper that relate to consumer access, business conduct and management of technology and cyber risks by DPTSPs ("Part 2 Response"). This follows the earlier publication in July 2023 of Part 1 of MAS’ response to feedback received on regulatory measures concerning segregation and custody of assets of customers of DPTSPs, prohibition against the lending and staking of retail customers' assets by DPTSPs, and prevention and detection of market abuse and unfair trading practices in the dealing of DPTs.
This Update provides a summary of the regulatory measures addressed in Part 2 Response concerning: consumer access measures for retail investors of DPTSPs; business conduct measures relating to the management of conflict of interests, complaints handling and dispute resolutions with customers; and mandating the requirements in the MAS Notice of Technology Risk Management applicable to the other financial institutions to DPTSPs.
Simplifying Cross-border Service of Documents: Hague Service Convention Enters into Force on 1 December 2023
The rules surrounding the service of documents aim to ensure that such documents come to the attention of the party to be served. Where judicial documents are concerned, any mistake in service may impact procedural fairness and result in serious consequences on the outcome of the litigation.
Where a party seeks to serve documents abroad, it would not only have to navigate unfamiliar rules of service, but also have to utilise diplomatic channels. This requires a formal request to be transmitted from the court of origin to its foreign ministry, then to the foreign ministry of the destination country, and finally to the destination court for an order of service.
To improve time and cost efficiencies for cross-border service of documents, the Hague Convention of 15 November 1965 on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters ("Service Convention") provides an alternative and simplified mechanism. Singapore became a Contracting Party to the Service Convention on 16 May 2023, as covered in our May 2023 Legal Update titled "Towards the Harmonised Service of Documents Abroad: Singapore Accedes to the Hague Service Convention".
The Service Convention entered into force in Singapore on 1 December 2023, meaning litigants in Singapore will now be able to utilise the simplified mechanism to serve documents on parties from other Contracting Parties. The Ministry of Law ("MinLaw") has announced further details on its implementation, including:
- The circumstances in which the Service Convention will apply;
- The service of foreign documents in Singapore under the Service Convention; and
- The service of documents in States that are Contracting Parties under the Service Convention.
In this Update, we provide an overview of the new transmission channel under the Service Convention, together with the new details of its implementation.
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