Compliance with the Corporate Service Providers Act 2024 and Regulations under the Act
All registered CSPs must comply with the Corporate Service Providers Act 2024 and Regulations to the CSP Act, which include requirements relating to anti-money laundering, countering proliferation financing and counter-terrorism financing.
A registered corporate service provider may be liable for a maximum fine of $100,000 if convicted of failing to comply with the requirements:
- To ensure that a person is fit and proper before arranging for that person to act as a nominee director of a company.
- To perform customer due diligence measures for detecting or preventing money laundering, proliferation financing and terrorism financing and to keep prescribed records in specified circumstances.
If ACRA’s investigations show a breach of duties and responsibilities, and after a show cause process has been administered, ACRA can take any of the following actions:
- Cancel or suspend the registration of the registered corporate service provider;
- Restrict the registered corporate service provider’s use of the electronic transaction system;
- Require the registered corporate service provider to pay a financial penalty not exceeding $25,000 for each breach, within a specified period; or
- Issue a censure to the registered corporate service provider.
Enforcement action for breach of the duties and responsibilities by a Registered Qualified Individual
All registered qualified individuals must comply with the Corporate Service Providers Act 2024 and Regulations to the CSP Act. Their key duties include overseeing ACRA transactions, supervising authorised employees who conduct transactions, and reporting and rectifying any errors or issues that arise during these transactions.
If ACRA’s investigations show a breach of duties and responsibilities, and after a show cause process has been administered, ACRA can take any of the following actions:
- Cancel or suspend the registration of the registered qualified individual;
- Restrict the registered qualified individual’s use of the electronic transaction system;
- Require the registered qualified individual to pay a financial penalty not exceeding $10,000 for each breach, within a specified period; or
- Issue a censure to the registered qualified individual.
