Singapore’s New CSP Act Comes Into Effect: What to Know

Singapore’s New CSP Act Comes Into Effect — What It Means for Businesses and Service Providers

As of 9 June 2025, the Corporate Service Providers (CSP) Act 2024 and the CSP Regulations 2025 officially came into effect. This new legislation brings significant changes to how corporate service providers (CSPs) operate in Singapore. If you’re a business owner, foreign investor, or managing director relying on third-party services, it’s important to understand how these new rules affect you.

Who Needs to Register as a CSP?

Anyone offering services like incorporation, registered office addresses, nominee directorships, secretarial support, or ACRA filings is now required to register with ACRA as a CSP. This applies even if your services are provided remotely or through intermediaries. The deadline for mandatory registration is 9 December 2025.

Key Compliance Requirements Under the New Law

1. Enhanced AML/CFT and PF Compliance

CSPs must now follow stricter anti-money laundering (AML), counter-financing of terrorism (CFT), and proliferation financing (PF) rules. This includes more detailed know-your-customer (KYC) checks, ongoing monitoring, employee training, and timely reporting of suspicious transactions. Failure to comply may result in heavy fines and legal consequences for both the firm and its senior personnel.

2. Mandatory Video-Based Onboarding

If you onboard clients remotely — especially foreign directors or shareholders — you must conduct live video verification. These sessions must be recorded and securely retained for five years. Screenshots and identity documents must also be documented and stored to demonstrate compliance.

3. Fit-and-Proper Criteria for Nominee Directors

Firms providing nominee director services must now perform formal checks to ensure nominees are fit and proper. This includes reviewing criminal history, financial background, and potential conflicts of interest. Nominee arrangements must be properly documented and disclosed to ACRA for transparency.

4. Disclosure of Controllers and Nominees

CSPs must help companies maintain up-to-date registers of registrable controllers, nominee directors, and nominee shareholders. This information must also be submitted to ACRA and will be visible on public business profiles, supporting greater transparency in Singapore’s corporate registry.

Why These Changes Matter to Business Owners

The new CSP law aligns Singapore with international compliance standards under the Financial Action Task Force (FATF). It enhances the country’s ability to detect, prevent, and deter the misuse of companies for illegal purposes, including tax evasion, money laundering, and terrorism financing.

If you’re using a CSP or considering company incorporation in Singapore, it is now crucial to work only with fully registered, compliant, and professional service providers. Non-compliant CSPs may face suspension, legal liability, and reputational damage — which could affect your own business.

How USAFE Supports Compliance Under the New CSP Regime

At USAFE, we are not only an ACRA-registered CSP — we are also a licensed Public Accounting (PA) firm and a tax advisor registered with the Singapore Chartered Tax Professionals (SCTP). Here’s how we help you stay compliant and confident:

We are fully registered under the new CSP Act and comply with all mandatory AML/CFT, recordkeeping, and onboarding requirements.
Our onboarding process includes video verification, enhanced due diligence, and full documentation aligned with the new law.
We offer nominee director services with full transparency, conducting proper fit-and-proper evaluations and reporting all required data to ACRA.
Our team maintains all necessary registers and ensures accurate filings with ACRA to keep your company records in good standing.
With offices in Singapore, Vietnam, Malaysia, Hong Kong, and China, our regional structure helps foreign clients navigate both local and cross-border compliance obligations.

Final Thoughts

Singapore’s new CSP Act is more than just a regulatory update — it’s a shift toward higher accountability and transparency for corporate service providers. If your current CSP is unregistered, unresponsive, or unaware of these changes, your business could be at risk.

At USAFE, we combine the depth of a professional firm with the responsiveness and care of a dedicated partner. We’re ready to help you incorporate, manage, and grow your business in Singapore while meeting every regulatory requirement.

Speak to our team today to ensure your corporate setup complies with the new CSP law — and avoid last-minute disruptions before the 9 December 2025 deadline.

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.

Sources: https://www.acra.gov.sg/corporate-service-providers/who-needs-to-register