Acra acting early to root out unethical corporate service providers

The Accounting and Corporate Regulatory Authority (Acra) of Singapore is intensifying efforts to detect and eliminate unethical corporate service providers (CSPs) to prevent misuse in illegal activities such as money laundering. Acra established a specialized unit in November 2023 to leverage data and technology for identifying suspicious activities during company setup and enhance monitoring of involved parties. In the first half of 2024, Acra took action against 14 registered CSPs for facilitating misuse of nominee directorships, canceling their registrations.

Acra's focus on rooting out unethical CSPs was amplified following notable cases, including the $3 billion laundering scandal by the “Fujian gang.” Many foreign-owned companies use nominee directors to fulfill local director requirements, leading to potential exploitation for illicit activities. Acra has prosecuted multiple nominee directors and issued debarment orders to ensure compliance.

The new Corporate Service Providers Bill, due for debate in July, aims to close regulatory gaps, holding CSPs accountable for the suitability of nominee directors they recommend. Acra continues to monitor high-risk individuals and entities to mitigate nominee directorship abuse.

Article by Tham Yuen-C for ST. Read more here or in the PDF below.

Acra acting early to root out unethical corporate service providers _ The Straits Times.pd

Download PD • 771KB