As we enter the final quarter of 2025, regulatory momentum across Asia continues to accelerate, with authorities introducing measures aimed at strengthening governance, enhancing market transparency, and deepening cross-border collaboration.

Singapore has advanced its leadership in sustainable finance through international partnerships with the UK and China, while also strengthening consumer protections and taking tough enforcement action on AML breaches. At the same time, Hong Kong has introduced a new framework to improve conduct risk management in the banking sector.

This month’s edition of Regwatch highlights key developments across ESG, AML, investment suitability, and operational risk, alongside Synpulse’s insights on what financial institutions should do next.

1. Environmental, Social, and Governance (ESG)

MAS & UK: Collaboration on Energy Transition (14 July 2025)

MAS and the UK have pledged up to £70 million to support Singapore’s Financing Asia’s Transition Partnership (FAST-P). The initiative is designed to mobilise public and private capital into renewable energy and sustainable infrastructure projects across Southeast Asia. (Monetary Authority of Singapore, Media Release, 14 July 2025).

Synpulse advice: Banks should evaluate opportunities to participate in FAST-P-backed projects through blended finance, syndicated lending, project advisory, or ESG-linked financing. By aligning ESG strategies with regional energy transition priorities, institutions can bridge infrastructure financing gaps and strengthen sustainability positioning.

MAS & PBoC: Deepening Cooperation on Green and Transition Finance (11 July 2025)

At the 3rd Singapore-China Green Finance Taskforce, MAS and the People’s Bank of China reaffirmed collaboration on: (Monetary Authority of Singapore, Media Release, 11 July 2025).

• Taxonomy interoperability to harmonise classification of sustainable activities.
• Green financing instruments such as cross-border green bonds.
• Technology-enabled emissions monitoring to track decarbonisation progress.

Synpulse advice: Banks with cross-border exposure should align with the Multi-Jurisdiction Common Ground Taxonomy (M-CGT) to facilitate green bond issuance, including green panda bonds, and consider piloting emissions-tracking platforms to support client portfolio assessments.

2. Anti-Money Laundering

MAS Enforcement Actions (4 July 2025)

MAS imposed S$27.45 million in fines on nine financial institutions for AML/CFT breaches tied to a S$3 billion money laundering case. This marks MAS’s second-largest cumulative penalty after 1MDB (Monetary Authority of Singapore, Enforcement Action Statement, 4 July 2025).

Synpulse advice: Institutions must urgently enhance AML frameworks, focusing on risk assessments, source-of-wealth checks, transaction monitoring, and STR follow-up. Boards and senior management must show active accountability, embedding remediation across both risk and front-office functions.

MAS: AML/CFT Industry Partnership (ACIP) (14 May 2025)

ACIP continues to drive public-private collaboration against financial crime, with platforms such as COSMIC for information sharing, and best practice guidance on proliferation financing and source-of-wealth due diligence. (Monetary Authority of Singapore, Regulatory Guidance, 14 May 2025).

Synpulse advice: Banks should adopt ACIP’s best practices into internal AML policies and enhance transaction monitoring by leveraging COSMIC’s secure data-sharing framework

3. Investment Suitability

MAS Consultation on Product Highlights Sheets (1 July 2025)

MAS has proposed reforms to improve retail product disclosures: (Monetary Authority of Singapore, Consultation Paper, 1 July 2025).

• Clearer PHS format: First-page Q&A design with red labels for complex products.
• Inclusion of ILPs: Extending PHS requirements to investment-linked policies.
• Product Knowledge Assessment (PKA): Alternative to mandatory financial advice for most retail investors.

Synpulse advice: Institutions must update disclosure templates and distribution processes, implement PKA tools, and strengthen safeguards for vulnerable client groups, ensuring product suitability remains at the core of distribution practices.

4. Operational Risk & Risk Management

HKMA: Mandatory Reference Checking (MRC) Scheme (24 July 2025)

The HKMA introduced a Mandatory Reference Checking Scheme to prevent employees with prior misconduct from moving undetected across institutions. (Hong Kong Monetary Authority, Insight, 24 July 2025).

Synpulse advice:

• Integrate into HR systems: Ensure systematic verification of conduct history with previous employers.
• Collaborate industry-wide: Participate in reference-checking consortiums or shared platforms.
• Reinforce culture: Embed accountability frameworks and strengthen governance to reduce misconduct risk.

Summary of sources

• MAS, Singapore and UK Collaborate on Energy Transition and Sustainable Infrastructure Investments in Southeast Asia – 14 Jul 2025
• MAS, Monetary Authority of Singapore and People’s Bank of China Deepen Cooperation in Green and Transition Finance – 11 Jul 2025
• MAS, MAS Takes Regulatory Actions against 9 Financial Institutions for AML-Related Breaches – 4 Jul 2025
• MAS, AML/CFT Industry Partnership (ACIP) – 14 May 2025
• MAS, MAS Proposes to Enhance Product Highlights Sheets and Streamline Framework for Complex Products – 1 Jul 2025
• HKMA, Rooting out “Rolling Bad Apples” – Mandatory Reference Checking Scheme – 24 Jul 202

As we enter the final quarter of 2025, regulatory momentum across Asia continues to accelerate, with authorities introducing measures aimed at strengthening governance, enhancing market transparency, and deepening cross-border collaboration.

Singapore has advanced its leadership in sustainable finance through international partnerships with the UK and China, while also strengthening consumer protections and taking tough enforcement action on AML breaches. At the same time, Hong Kong has introduced a new framework to improve conduct risk management in the banking sector.

This month’s edition of Regwatch highlights key developments across ESG, AML, investment suitability, and operational risk, alongside Synpulse’s insights on what financial institutions should do next.

1. Environmental, Social, and Governance (ESG)

MAS & UK: Collaboration on Energy Transition (14 July 2025)

MAS and the UK have pledged up to £70 million to support Singapore’s Financing Asia’s Transition Partnership (FAST-P). The initiative is designed to mobilise public and private capital into renewable energy and sustainable infrastructure projects across Southeast Asia. (Monetary Authority of Singapore, Media Release, 14 July 2025).

Synpulse advice: Banks should evaluate opportunities to participate in FAST-P-backed projects through blended finance, syndicated lending, project advisory, or ESG-linked financing. By aligning ESG strategies with regional energy transition priorities, institutions can bridge infrastructure financing gaps and strengthen sustainability positioning.

MAS & PBoC: Deepening Cooperation on Green and Transition Finance (11 July 2025)

At the 3rd Singapore-China Green Finance Taskforce, MAS and the People’s Bank of China reaffirmed collaboration on: (Monetary Authority of Singapore, Media Release, 11 July 2025).

• Taxonomy interoperability to harmonise classification of sustainable activities.
• Green financing instruments such as cross-border green bonds.
• Technology-enabled emissions monitoring to track decarbonisation progress.

Synpulse advice: Banks with cross-border exposure should align with the Multi-Jurisdiction Common Ground Taxonomy (M-CGT) to facilitate green bond issuance, including green panda bonds, and consider piloting emissions-tracking platforms to support client portfolio assessments.

2. Anti-Money Laundering

MAS Enforcement Actions (4 July 2025)

MAS imposed S$27.45 million in fines on nine financial institutions for AML/CFT breaches tied to a S$3 billion money laundering case. This marks MAS’s second-largest cumulative penalty after 1MDB (Monetary Authority of Singapore, Enforcement Action Statement, 4 July 2025).

Synpulse advice: Institutions must urgently enhance AML frameworks, focusing on risk assessments, source-of-wealth checks, transaction monitoring, and STR follow-up. Boards and senior management must show active accountability, embedding remediation across both risk and front-office functions.

MAS: AML/CFT Industry Partnership (ACIP) (14 May 2025)

ACIP continues to drive public-private collaboration against financial crime, with platforms such as COSMIC for information sharing, and best practice guidance on proliferation financing and source-of-wealth due diligence. (Monetary Authority of Singapore, Regulatory Guidance, 14 May 2025).

Synpulse advice: Banks should adopt ACIP’s best practices into internal AML policies and enhance transaction monitoring by leveraging COSMIC’s secure data-sharing framework

3. Investment Suitability

MAS Consultation on Product Highlights Sheets (1 July 2025)

MAS has proposed reforms to improve retail product disclosures: (Monetary Authority of Singapore, Consultation Paper, 1 July 2025).

• Clearer PHS format: First-page Q&A design with red labels for complex products.
• Inclusion of ILPs: Extending PHS requirements to investment-linked policies.
• Product Knowledge Assessment (PKA): Alternative to mandatory financial advice for most retail investors.

Synpulse advice: Institutions must update disclosure templates and distribution processes, implement PKA tools, and strengthen safeguards for vulnerable client groups, ensuring product suitability remains at the core of distribution practices.

4. Operational Risk & Risk Management

HKMA: Mandatory Reference Checking (MRC) Scheme (24 July 2025)

The HKMA introduced a Mandatory Reference Checking Scheme to prevent employees with prior misconduct from moving undetected across institutions. (Hong Kong Monetary Authority, Insight, 24 July 2025).

Synpulse advice:

• Integrate into HR systems: Ensure systematic verification of conduct history with previous employers.
• Collaborate industry-wide: Participate in reference-checking consortiums or shared platforms.
• Reinforce culture: Embed accountability frameworks and strengthen governance to reduce misconduct risk.

Summary of sources

• MAS, Singapore and UK Collaborate on Energy Transition and Sustainable Infrastructure Investments in Southeast Asia – 14 Jul 2025
• MAS, Monetary Authority of Singapore and People’s Bank of China Deepen Cooperation in Green and Transition Finance – 11 Jul 2025
• MAS, MAS Takes Regulatory Actions against 9 Financial Institutions for AML-Related Breaches – 4 Jul 2025
• MAS, AML/CFT Industry Partnership (ACIP) – 14 May 2025
• MAS, MAS Proposes to Enhance Product Highlights Sheets and Streamline Framework for Complex Products – 1 Jul 2025
• HKMA, Rooting out “Rolling Bad Apples” – Mandatory Reference Checking Scheme – 24 Jul 202