Strengthening Anti-Money Laundering Measures and Corporate Oversight
The Accounting and Corporate Regulatory Authority (ACRA) is set to introduce new proposals in 2024 to tighten Singapore’s anti-money laundering framework, with a focus on increasing penalties for corporate service providers and placing restrictions on directorships. Minister Indranee Rajah revealed that these measures would include higher penalties for errant service providers and limitations on the number of nominee directorships an individual can hold.
ACRA will also investigate the role of registered filing agents, who assist non-residents in establishing companies in Singapore, in connection with the largest money laundering investigation in the country’s history. Since 2021, ACRA has imposed 24 sanctions on registered agents, including the cancellation or suspension of eight registrations.
Regarding directorships, ACRA is considering restrictions to ensure that nominee directors are qualified for the role. Currently, there are no limits on the number of directorships a person can hold, although 99% of directors manage fewer than 10 directorships. The proposals, which were previously consulted on in 2022, aim to enhance corporate accountability and protect Singapore’s financial integrity.
