In its benchmark submissions report, the watchdog claimed that the lenders were involved in the Singapore Interbank Offered Rates (SIBOR) and Swap Offered Rates (SOR) and the Foreign Exchange spot benchmarks (FX Benchmarks) fixing case, over the period from 2007 to 2011.
Based on its findings, MAS has initiated various supervisory actions against banks for deficiencies in the governance, risk management, internal controls, and surveillance systems, relating to these processes.
Ordering them to incorporate adequate measures to deal with these shortcomings, the regulatory agency asked banks to submit their progress report on a quarterly basis, and carry out independent reviews to ensure the robustness of their remedial measures.
All the involved banks will have to put additional statutory reserves with MAS at zero interest for a period of one year, which will be revised later.
MAS claimed that total 133 traders were found guilty for improperly influencing the benchmarks, although there was lack of clear evidence against them.
In an attempt to avoid reoccurrence such incidents, MSA is planning to launch specific criminal and civil sanctions under the Securities and Futures Act (SFA) for manipulation of any financial benchmark. It also intends to establish a key financial benchmark for regulatory oversight.
