Regulators

Regulatory compliance is a priority at UOB. We are committed to upholding the highest standards of ethics, integrity and fairness so as to be a source of stability, security and strength for our stakeholders.

Regulatory Landscape

The financial environment has in recent years seen rapidly changing regulations and policies. Governments and regulators have introduced new measures aimed at maintaining a robust and sustainable financial sector in light of challenges arising from changing consumer behaviour and disruptive technologies, and increased risks of financial crime including money laundering, financing of terrorism, fraud, tax evasion and cyber security threats.

At UOB, we constantly monitor industry developments, review and enhance compliance capabilities within our organisation and strengthen our values-based compliance culture. We also actively engage with regulatory and standards-setting bodies so that we manage regulatory risks in a timely and effective manner.

Strong Compliance Culture

We are committed to complying with applicable laws and regulations in the countries and territories in which we operate. These include requirements relevant to the licensing and conduct of banking or other financial businesses, as well as those aimed at preventing financial crimes such as money laundering, terrorism financing, fraud, insider trading, tax evasion, bribery and corruption.

Group Compliance, an independent function reporting directly to the Group CEO, is tasked with identifying, assessing, monitoring and managing regulatory compliance risks. Group Compliance plays an important role in promoting a strong compliance culture and ethical conduct through advisory, active engagement with internal stakeholders and training.

The function also assists Senior Management and the Board in ensuring that activities of the Group are conducted in accordance with laws and regulations through periodic compliance reviews across the Group’s business and support units. It also monitors regulatory trends and developments and provides regular updates to Senior Management and the Board.

The UOB Group Compliance Charter is aligned to the standards and guidance provided in the Basel Committee on Banking Supervision’s “Compliance and the Compliance Function in Banks” paper. The Charter establishes the basic principles and duties of the Group Compliance function, roles and responsibilities of the internal stakeholders, and the relationship between Group Compliance and its internal stakeholders.

UOB also adheres to international standards such as the Volcker Rule, Foreign Account Tax Compliance Act (FATCA), as well as the Organisation for Economic Co-operation and Development (OECD)’s Common Reporting Standard (CRS). This is done by designing, implementing and operating effective compliance programmes to comply with the requirements.

Anti-Money Laundering and Countering Terrorism Financing

UOB maintains a firm stance against financial crimes such as money laundering and terrorism financing. We have a robust and dynamic Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) framework and programme that identifies, assesses, mitigates and manages the risks associated with money laundering, terrorist financing and sanctions. The framework and programmes are reviewed and audited regularly by both our internal and external auditors.

All employees are required to comply with UOB’s Group-wide Anti-Money Laundering Policy and applicable laws. A dedicated Senior Management committee provides governance oversight on the Group’s AML/CFT and sanction-related matters.

We also monitor regulatory developments to assess the potential implications on our policies and processes. Significant events are escalated to the committee and Senior Management on a timely basis.

Prohibiting Insider Trading

In line with the UOB Group Policy on Personal Trading in Securities, we have comprehensive policies and procedures in place that prohibit insider trading, manage insider trading risks and monitor employees’ adherence. The policy requires employees who may have access to inside information to obtain pre-trade clearance approval in the pre-trade clearance system before executing their trades on the stock exchanges. Securities transactions by such employees are reviewed regularly by Group Compliance to detect potential violations.

Anti-Bribery and Anti-Corruption

The Group adopts a zero tolerance approach to bribery and corruption. The UOB Code of Conduct includes our policies relating to anti-bribery including facilitation payments, restrictions on gifts and entertainment expenses, as well as conflicts of interest.

All new employees are required to complete an online training module on the UOB Code of Conduct, followed by an online assessment. Subsequently, all employees are required to complete the UOB Code of Conduct refreshment module every year.

In addition, our whistleblowing procedures enable employees to report in a private, confidential and secure manner, any instances of potential bribery.

There were no confirmed cases of bribery during the reporting period.

FATCA – Foreign Account Tax Compliance Act

FATCA originated as a US-legislation designed to prevent tax evasion by US persons through the use of offshore accounts. To date, the US has negotiated bilateral Inter-Governmental Agreements (IGA) with more than 100 jurisdictions to incorporate FATCA into the respective jurisdiction’s local legislation.

FATCA requires all foreign financial institutions to identify and to report information on assets held by US persons and other non-cooperative entities and individuals.

Our FATCA operationalisation programme, implemented in 2012, ensures that the Group meets all applicable FATCA requirements in all the jurisdictions in which we operate. We also have a governance framework to ensure that the Group continues to comply with FATCA requirements on a business as usual basis.

Common Reporting Standard (CRS)

The CRS is a global tax information exchange standard developed by the OECD to prevent offshore tax evasion. Modelled on the FATCA Model 1 IGA, the CRS requires participating jurisdictions to identify and to collect tax information on residents of the bilateral treaty country and to exchange that information on an annual basis. To date, more than 100 countries have committed to the CRS.

Our CRS operationalisation programme ensures the Group meets all applicable CRS requirements in all the participating jurisdictions in which we operate.