Corporate service providers to be subject to more stringent compliance standards

• Corporate service providers to be subject to more stringent compliance standards

• Govt agencies can work together to curb suspicious transactions

The Straits Times, 05 April 2024

Corporate service providers to be subject to more stringent compliance standards

We refer to Mr Cheong Wing Kiat’s letter “Govt agencies can work together to curb suspicious transactions ↗ (opens in new tab)” (March 26). We share the writer’s concern on the misuse of identities for the appointment of directors of companies.

The Immigration and Checkpoints Authority and police may investigate the misuse of identities under the National Registration Act, the Penal Code, or the Computer Misuse Act, depending on the facts and circumstances of a case. Those who misuse identities face imprisonment and/or fines.

The Accounting and Corporate Regulatory Authority (Acra) will act against any person, including corporate service providers (CSPs), who file such appointments without the directors’ consent.

CSPs who have assisted individuals in filing such appointments and are found to have breached their anti-money laundering/countering the financing of terrorism obligations or acted negligently or wilfully may have their CSP registrations cancelled.

In addition, a false or misleading filing carries a maximum fine of $50,000 and/or imprisonment of up to two years.

The Ministry of Finance and Acra have also proposed a new CSP Bill to strengthen the regulatory regime for CSPs further. It will subject CSPs to more stringent compliance standards when performing corporate services, such as the appointment of directors. More details will be released in due course.

The Government will continue to review procedures so as to strengthen monitoring and sense-making capabilities across government agencies. We thank Mr Cheong for his suggestions and will consider them as part of our on-going review.

Ms Yvonne Cheong

Director, Corporate Communications and Engagement Department

Accounting and Corporate Regulatory Authority

The Straits Times, 26 March 2024

Govt agencies can work together to curb suspicious company transactions

I was troubled to read the news reports “Local firm draws complaints in US, S’pore over promises of quick returns on crypto” and “‘I will die if crimes were committed’: S’porean man unaware he is director of 4 firms, files police report” (both March 24).

Singapore has a reputation for being a leading global business and financial hub, and I urge government ministries and agencies such as the Monetary Authority of Singapore, the Accounting and Corporate Regulatory Authority (Acra), and the Immigration and Checkpoints Authority (ICA) to review and integrate their policies and databases to work holistically.

Furthermore, individuals involved in activities such as registering companies, filing annual returns, opening and reviewing bank accounts, and overseeing transactions must be comprehensively trained regularly.

Given the advancements in computer systems and artificial intelligence technologies, establishing robust control checkpoints to identify unusual and suspicious transactions for further review and investigation is feasible. For instance, lost or stolen identity cards handled by ICA can be flagged in Acra reports, indicating invalid director identification cards.

Cheong Wing Kiat