Singapore seeks to cut account opening time for rich to a month

Singapore’s financial regulator is working with private banks to shorten account opening time using a “risk-appropriate” approach, as the city-state rises in importance as a wealth management hub.

The Monetary Authority of Singapore (MAS) wants to cut the duration to within one month, from a current median of about six weeks or longer in complex cases, managing director Chia Der Jiun said at the UBS Asian Investment Conference in Singapore. The move is to ensure banks avoid unnecessary and excessive checks on clients’ sources of wealth while also upholding high standards, Chia said on Monday.

Singapore has been moving to cut down the waiting time for rich people seeking to manage their assets in the country, even as it balances the scrutiny on these inflows following several scandals in recent years. Its domestic banks have been reaping fees from their wealth management businesses, with the country seen as a haven amid geopolitical uncertainty.

“More efficient account opening will improve the competitiveness of the wealth management industry while maintaining high standards,” Chia said. “Amidst more regular shocks and persistent uncertainty, Singapore’s financial centre and the safety, stability, trust and dynamism that it stands for offers significant value.”

The MAS issued a circular to financial institutions on Monday, which provides more guidance on this approach, according to Chia. The industry will roll out case studies and training for bankers and compliance professionals, he said.