A new Bill proposed by the Ministry of Finance (MOF) and the Accounting and Corporate Regulatory Authority (Acra) seeks to impose fines of up to S$100,000 for corporate service providers (CSPs) that fail to comply with anti-money laundering obligations. This includes responsibilities related to preventing terrorism financing and the proliferation of weapons of mass destruction.

The Bill is part of broader efforts to enhance the regulatory framework governing CSPs in Singapore. Key measures include mandatory registration with Acra every two years for all CSPs, with non-compliance leading to penalties of up to S$50,000 and possible imprisonment. CSPs must also appoint at least one registered qualified individual.

Additionally, the Bill aims to curb the misuse of nominee directorships by mandating that individuals acting as nominee directors must be appointed by registered CSPs, meet “fit and proper” standards, and disclose their nominee status and nominators to Acra. These changes follow heightened scrutiny after a large money laundering probe in Singapore, during which several CSPs were found to have breached compliance regulations.

Public feedback is being sought on the proposed Bill, which also includes amendments to the Companies Act 1967 and Limited Liability Partnerships Act 2005.