New Singapore Law Increases Fines for Corporate Service Providers Violating Anti-Money Laundering Rules
A new law in Singapore will increase fines for corporate service providers that fail to comply with anti-money laundering regulations. The fines will rise from S$25,000 to S$100,000 (US$73,650).
Key Points of the New Law:
- Mandatory Registration: All businesses providing corporate services must register with the Accounting and Corporate Regulatory Authority (ACRA). This includes firms serving only overseas clients.
- Stricter Regulations: The law requires corporate service providers to conduct thorough customer due diligence.
- Nominee Directors: Only individuals arranged by registered corporate service providers and deemed fit for the role can act as nominee directors.
Context and Background:
- ACRA imposed 41 sanctions between 2021 and June 2024, with 31 cases leading to cancellations or suspensions.
- The law responds to recent high-profile money laundering cases, including a S$3 billion scandal last year.
Parliamentary Discussion:
- Second Minister for Finance Indranee Rajah emphasized these measures’ importance to combat financial crime and maintain Singapore’s reputation.
- Concerns arose about potential increased compliance costs for small businesses, but the government assured that these are existing best practices.
Related Developments:
- The Companies and Limited Liability Partnerships (Miscellaneous Amendments) Bill was also debated. It raises penalties for firms failing to maintain accurate registers of significant interest holders and nominee directors.
- Both bills aim to strengthen Singapore’s anti-money laundering regime and ensure transparency in corporate activities.
Why It Matters:
- The new regulations aim to protect Singapore’s financial system from exploitation. They send a clear message against “Singapore-washing,” where foreign firms misuse the local financial system.
By reinforcing these laws, Singapore continues its commitment to being a secure and reputable business hub, ensuring compliance and integrity within its corporate services sector.
Disclaimer: This article is for informational purposes only and does not constitute any professional advice. Feel free to contact us to consult with our professional advisors team for personalized advice and guidance.
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