MAS consults on proposed amendments to related party transaction requirements for banks

29 October 2025

On 14 October 2025, the Monetary Authority of Singapore (“MAS”) published its Consultation Paper on Proposed Amendments to Related Party Transaction Requirements for Banks (“consultation paper”). The consultation closes on 14 November 2025.

The consultation paper sets out proposed changes to MAS’ requirements on banks’ transactions with related parties. The proposed changes seek to enhance oversight of such related party transactions (“RPTs”), address the risks of conflicts of interest, and align with international best practices including the updated Core Principles for Effective Banking Supervision issued by the Basel Committee on Banking Supervision.

Specifically, MAS proposes to:

• update the definition of related parties to include (i) persons who can exert influence over executive officers and directors, supplementing current rules that cover entities under these officers’ influence; and (ii) indirect controllers (and their affiliates and family members) to capture persons with influence over the bank beyond interest in shares and control of voting rights;
• refine the scope of intragroup transactions excluded from RPT governance requirements that are currently set out in MAS Notice 643 on Transactions with Related Parties (“Notice 643”); and
• incorporate the existing related party group exposure limits set out in MAS Notice 656 on Exposures to Single Counterparty Groups for Banks Incorporated in Singapore into Notice 643, and to impose exposure limits on additional related party groups in MAS Notice 643.

MAS is also reviewing the RPT requirements for merchant banks and will take reference from the revised RPT framework for banks in doing so, while considering the business model and associated risks of merchant banks.
MAS will consult the industry separately in due course.

Reference materials

The consultation paper is available on the MAS website www.mas.gov.sg.