New Singapore law quadruples fines for corporate service providers that breach anti-money laundering duties
- Jul 2, 2024
- 1 min read
Parliament passed a new law on July 2, significantly increasing penalties for corporate service providers failing to meet anti-money laundering standards. The Accounting and Corporate Regulatory Authority (ACRA) will impose fines of up to S$100,000, up from the current S$25,000. ACRA has already sanctioned 41 firms since 2021, cancelling or suspending 31 registrations.
The Corporate Service Providers Bill mandates that all corporate service providers register with ACRA, extending even to those servicing overseas clients. The law aims to curb abuses in nominee directorship arrangements, which can be exploited for illicit activities. Only registered providers can now appoint nominee directors, ensuring they are fit for the role.
The bill aligns with ongoing efforts to combat financial crime, underscored by recent high-profile money laundering cases. However, MPs expressed concerns about increased compliance costs for small businesses. The government assures that the measures are calibrated to balance enforcement with business friendliness.
Article by Natasha Ganesan and Abigail Ng for CNA. Read more here or in the PDF below.
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