Compliance Requirements for Financial Institutions in Singapore (2025)
VComply Editorial Team 
October 7, 2025 
3 minutes Singapore remains one of the most highly regulated and digitally forward economies in the world, especially in financial services. Financial institutions (FIs) operating in Singapore are expected to comply with a wide range of legal, regulatory, and operational requirements issued primarily by the Monetary Authority of Singapore (MAS), as well as related frameworks for data protection, outsourcing, and business continuity.
Key Takeaways (TL;DR)
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Discover how Singapore’s evolving MAS and PDPA regulations demand smarter, automated compliance management.
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Learn how modern GRC platforms simplify audits, risk tracking, and regulatory reporting for financial institutions.
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Understand why AI and automation are essential for achieving real-time regulatory readiness in 2025.
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See how centralized policy management and risk frameworks strengthen governance across regional entities.
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Explore why VComply is the ideal GRC solution built for Singapore’s financial ecosystem.
Below is a comprehensive breakdown of key regulatory areas, along with a practical guide for evaluating and selecting a GRC (Governance, Risk, and Compliance) software solution that supports ongoing compliance and audit readiness.
1. MAS Technology Risk Management (TRM) Guidelines
Applies to: Banks, insurance companies, capital market intermediaries, e-payment providers, and more.
Key Requirements:
- Establishment of a sound IT governance framework
- Implementation of a risk-based approach to technology management
- Cybersecurity risk assessments and controls
- Secure system development lifecycle (SSDLC)
- Independent audits of technology controls
- Real-time monitoring and incident response readiness
GRC Tool Needs:
- Risk registers for technology and cyber risks
- Control mapping for TRM requirements
- Task workflows for vulnerability remediation
- Incident reporting and escalation workflows
2. Outsourcing Guidelines (Including Cloud Services)
FIs that engage third parties for business functions—especially cloud services—must adhere to strict outsourcing regulations.
Key Requirements:
- Maintain a central outsourcing register
- Conduct risk assessments before onboarding vendors
- Obtain board approval for material outsourcing arrangements
- Define clear contractual terms, including right to audit, data confidentiality, and business continuity
- Ongoing monitoring and control testing of third parties
GRC Tool Needs:
- Vendor onboarding and due diligence checklists
- Outsourcing approval workflows
- Contract and document management
- Third-party monitoring dashboards
3. PDPA (Personal Data Protection Act)
Administered by the Personal Data Protection Commission (PDPC), the PDPA applies across industries, including finance.
Key Requirements:
- Appoint a Data Protection Officer (DPO)
- Implement policies for data collection, use, and disclosure
- Provide data access and correction rights to individuals
- Report data breaches within 3 calendar days
- Train employees on data handling protocols
GRC Tool Needs:
- Policy acknowledgment tracking
- Privacy training compliance
- Breach notification workflows
- Audit trails of policy changes and evidence of training
4. AML/CFT (Anti-Money Laundering and Countering the Financing of Terrorism)
MAS has issued multiple AML notices (e.g., 626, 824, 1014) for different types of FIs.
Key Requirements:
- Risk-based customer due diligence (CDD) and enhanced due diligence (EDD)
- Ongoing monitoring and transaction screening
- Timely submission of Suspicious Transaction Reports (STRs)
- Record keeping of customer and transaction data
- Regular staff training on AML red flags and protocols
GRC Tool Needs:
- AML task tracking and reporting checklists
- AML training program documentation
- Monitoring compliance schedules
- Case management for STR preparation
5. Audit and Internal Governance Requirements
All FIs must demonstrate accountability through internal audit and compliance monitoring.
Key Requirements:
- Maintain audit logs of compliance activity
- Schedule and perform regular internal audits
- Ensure compliance officers report directly to senior management or board
- Track corrective actions and follow-ups
GRC Tool Needs:
- Audit management module
- Task assignment and follow-up workflows
- Role-based dashboards for reporting
- Evidence upload and linking
6. ESG & Conduct Risk (Emerging Areas)
Although not yet fully mandated, MAS and SGX are increasingly emphasizing:
- ESG disclosures aligned to ISSB and TCFD frameworks
- Conduct risk management (e.g., fair dealing, whistleblower policies)
- Business continuity planning (BCP) for climate and cyber events
GRC Tool Needs:
- ESG reporting templates and documentation
- Policy management workflows for conduct and ethics
- Incident response for whistleblowing and conduct violations
- Integrated BCM task checklists
Compliance Tool Selection Guide for Singaporean Financial Institutions
To support the regulatory and operational demands outlined above, financial organizations in Singapore must select GRC software that enables real-time execution, not just documentation. Below is a step-by-step guide to selecting a tool that meets current and future needs.
Step 1: Match Tool Capabilities to Regulatory Requirements
| Regulatory Area | Tool Capability Needed |
| MAS TRM | Risk control mapping, cyber task automation, incident logs |
| PDPA | Policy acknowledgment, breach notification workflows |
| AML/CFT | KYC/EDD task tracking, STR logging, training evidence |
| Outsourcing | Vendor tracking, due diligence forms, contract reminders |
| Audit Readiness | Evidence centralization, reporting dashboards |
Step 2: Look for Features that Operationalize Compliance
| Must-Have Feature | Benefit |
| Central Compliance Repository | Prevents version chaos across Excel/email folders |
| Role-Based Access Control | Segregates data by department, entity, or geography |
| Acknowledgment & Training Logs | Proves employee awareness for policies and updates |
| Risk & Control Frameworks | Links risks to specific business controls and owners |
| Incident Reporting Module | Supports whistleblowing, breaches, and audit findings |
| Audit-Ready Reports | Facilitates MAS audits with exportable evidence logs |
| Custom Workflows & Alerts | Automates recurring compliance, onboarding, and escalations |
Step 3: Prioritize AI & Automation for 2025 Readiness
With rising compliance complexity, AI and automation can make a major difference.
Recommended Capabilities:
- AI-generated policy templates (aligned to MAS or PDPA)
- Automated control testing workflows
- Smart risk detection or scoring
- Natural language search across policies and records
Step 4: Assess Localization and Fit for Singaporean Context
| Local Fit Questions to Ask | Why It Matters |
| Do you support MAS-specific workflows? | Aligns tool to local regulatory landscape |
| Where is customer data hosted? | Ensures compliance with data residency and cloud regulations |
| Can users operate the tool without IT? | Reduces dependency and speeds up deployment |
| How fast is onboarding? | Time-to-value matters for lean compliance teams |
| Do you support multi-entity governance? | Important for regional or global groups based in Singapore |
Final Checklist: What to Look for in a GRC Tool
- MAS, PDPA, and AML-aligned workflows
- Policy and risk management in one platform
- Built-in audit readiness and evidence trails
- Modular pricing to suit mid-sized and growing FIs
- Rapid deployment with low IT dependence
- Local support or APAC experience
Why VComply is the Ideal GRC Solution for Singaporean Financial Institutions
- Prebuilt workflows for MAS TRM, AML/CFT, outsourcing, PDPA, and more
- AI-powered policy management assistant
- Audit-ready task management and evidence modules
- Fast onboarding (go live in 4 weeks or less)
- No-code configuration for cross-functional use
- Trusted by 2,000+ companies across 36+ countries, including Asia-Pacific
If you’re a Singapore-based financial organization looking to upgrade your compliance operations, VComply offers the ideal combination of simplicity, scalability, and local relevance.
