8 Sep 2021
The Accounting and Corporate Regulatory Authority (ACRA) has cancelled the registration of a registered filing agent (RFA), MEA Business Consultancy Pte Ltd (MBC) for multiple breaches of anti-money laundering and countering the financing of terrorism (AML/CFT) regulations. This is the first time an RFA’s registration had been cancelled due to serious AML/CFT breaches.
ACRA’s inspection into MBC revealed that it had committed 29 severe AML/CFT breaches including:
- Failure to inquire on the existence of any beneficial owner;
- Failure to document the details of risk assessment when performing diligence measures;
- Failure to conduct on-going monitoring of every business relationship with a client; and
- Failure to establish and maintain appropriate and risk-sensitive internal policies, procedures and controls (IPPCs) to prevent activities related to money laundering and the financing of terrorism.
In view of the multiple severe AML/CFT breaches, ACRA had cancelled the RFA registration for MBC for a period of two years from 8 March 2021 to 7 March 2023..
RFAs should take their AML/CFT obligations seriously. Those found to have committed any breach could face severe sanctions of financial penalties of up to $25,000 per breach and have their registration suspended or cancelled. The names of RFAs whose registration have been suspended or cancelled will be published on BizFile+ portal and ACRA’s website.
Read Press Release: ACRA bars Registered Filing Agent MEA Business Consultancy Pte Ltd for multiple AML/CFT breaches.