It's the same the world over; the difference one word can make, changing "shall" to "should". That way, authorities can lay out the rules, but tacitly let companies flout them without it bouncing back in the authorities' laps when it all goes awry. It is a global problem, not just local, this attitude to regulations and looking for loopholes, and appears in almost every industry.
It is because money men run almost all of those industries, and non-specific bureaucrats run the authorities and regulators, not professionals relevant to that industry (like doctors running hospitals, teachers running schools or engineers running construction or manufacturing businesses or regulators). The money men and bureaucrats have complete detachment from what their business is actually about, only comprehending spreadsheets, rather than the business and its staff. It appears to resemble some kind of autism.