Financial Services and Markets (Amendment) Bill passed in Parliament to empower MAS to introduce total loss-absorbing capacity requirements on DSIBs

28 October 2026

On 6 October 2026, the Financial Services and Markets (Amendment) Bill (“Bill”) was passed in Parliament. The Bill seeks to enhance Singapore’s financial institution (“FI”) resolution regime through the introduction of total loss-absorbing capacity (“TLAC”) requirements for domestic systemically important banks (“DSIBs”). It also introduces technical amendments to align Singapore’s framework on counter-proliferation financing with the updated Financial Action Task Force (“FATF”) Standards. Together, the amendments seek to enhance the resilience of Singapore’s financial system and support its position as a trusted international financial centre.

In his speech at the second reading of the Bill, Minister of State for Foreign Affairs and National Development and Board Member of the Monetary Authority of Singapore (“MAS”) Alvin Tan provided an overview of the key amendments.

TLAC requirements for DSIBs

The Bill empowers MAS to impose TLAC requirements on DSIBs in Singapore. Under this framework, DSIBs in Singapore will be required to hold additional eligible loss-absorbing instruments and other financial resources. MAS has consulted the industry and public on key details of the TLAC framework, including:

• the level of TLAC that the DSIBs must maintain;
• the types of eligible instruments that qualify as loss-absorbing instruments and the types of financial resources that may be treated as TLAC;
• the information on its TLAC that DSIBs must disclose to the public; and
• the implementation timeline.

The new requirements complement MAS’ existing resolution powers under the Financial Services and Markets Act 2022, which include powers to bail in subordinated creditors of a distressed FI to restore its solvency.

The introduction of the TLAC framework forms part of MAS’ ongoing efforts to enhance Singapore’s resolution regime. It is intended to allow MAS to be able to act decisively to maintain financial stability in the unlikely event of a distressed DSIB.

Technical amendments for alignment with updated FATF Standards

The Bill also introduces technical amendments to align Singapore’s framework on counter-proliferation financing with the updated FATF Standards in this area. Currently, MAS’ anti-money laundering regime already requires FIs to put in place measures to mitigate the risks of financing the proliferation of weapons of mass destruction. Consequently, MAS’ supervisory programme over FIs similarly covers such risks. Nonetheless, to ensure technical alignment with updates to the FATF Standards and to sharpen clarity, the amendments will specifically provide that:

• MAS’ supervision covers proliferation financing risks in addition to money laundering risks and terrorism financing risks; and
• MAS may render assistance to domestic authorities and its counterpart foreign authorities in their supervision of proliferation financing risks.

In addition, arising from these changes, the Bill will make consequential and related amendments to other Acts administered by MAS.

Reference materials

The following materials are available on Singapore Statutes Online sso.agc.gov.sg and the MAS website www.mas.gov.sg:

• Financial Services and Markets (Amendment) Bill
• Second Reading Speech by Mr Alvin Tan, Minister of State for Foreign Affairs and National Development, and Board Member of the Monetary Authority of Singapore (MAS)