SINGAPORE: In response to recent high-profile money-laundering cases involving foreign nationals, Singapore is considering stricter regulations for co
SINGAPORE: In response to recent high-profile money-laundering cases involving foreign nationals, Singapore is considering stricter regulations for corporate service providers to enhance oversight and deter illegal financial activities. Announced on Tuesday (March 12), the proposal would require all companies offering corporate services—such as business setup and regulatory filings—to register with the Accounting and Corporate Regulatory Authority (ACRA). This mandate would apply to both local and international providers operating within Singapore.
The proposal includes significant fines, with penalties reaching up to $100,000, for corporate service providers and their senior management if they breach anti-money-laundering laws or facilitate illicit financing activities.
This regulatory shift comes in the wake of a recent $3 billion money-laundering scandal involving ten individuals of Chinese origin, who allegedly used illegal gambling proceeds to fund luxury lifestyles. Several of these individuals had registered companies in Singapore, often appointing local citizens as directors or corporate secretaries.
One key proposal addresses nominee directors, suggesting that such directors should undergo vetting by registered corporate service providers before appointment. While the current proposal does not limit the number of nominee directorships one person can hold, this topic was highlighted by Second Minister for National Development Indranee Rajah last October.
ACRA plans to enhance its supervision and enforcement, particularly monitoring individuals holding multiple nominee directorships and other high-risk factors. Bloomberg reports that this strategy addresses recent concerns, especially after findings revealed that companies linked to the $3 billion scandal had secretaries or directors involved in over 3,000 firms.
The public has until March 25 to submit feedback on these proposed measures, and ACRA is encouraging stakeholders to participate to ensure these regulations are both effective and practical for bolstering Singapore’s corporate sector integrity.
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