THE Monetary Authority of Singapore (MAS) yesterday said local financial institutions must comply with regulations that fully incorporate United Nations sanctions on Iran.
It said in an e-mailed response to The Straits Times: "Financial institutions in Singapore know that it is in their commercial and reputational interests to consider the impact of unilateral sanctions, such as the actions of the US, on their business operations."
It added that it has prohibited certain Iran-related transactions that threatened the integrity of Singapore's financial system, including those involving Iranian oil.
This came in response to calls by the Financial Action Task Force, an international body that helps combat money laundering.
The MAS had issued a set of guidelines to financial institutions in May relating to safeguarding the financial system's integrity against risks emanating from Iran. These recommended that institutions should be "alert to unilateral sanctions against Iran-related transactions", which are imposed by a number of countries and may apply across borders.
The guidelines added that "the MAS will not tolerate the use of the financial system for the conduct of criminal and illicit activities".