Singapore strenghtens regulatory framework for combating financial crime and increasing transparency in the corporate sector

     

A notable focus of the new legislation is the role of nominee directors in companies. The Bills introduce strict rules whereby individuals can only act as nominee directors if their appointments are arranged by registered CSPs who have assessed them as fit and proper. In addition, companies will be required to disclose the nominee status of such directors and shareholders to the Accounting and Corporate Regulatory Authority (ACRA), which will then make this information publicly available. This enhanced disclosure regime is aimed at curbing the misuse of nominee arrangements, which could potentially facilitate illicit activities such as money laundering.

      

These legislative changes underscore Singapore's commitment to maintaining its status as a reliable and rigorous financial centre. By imposing stricter controls on Corporate Service Providers and clarifying the obligations associated with nominee directorships, Singapore aims to strike a balance between facilitating business and preventing financial crime. The new laws are expected to come into effect following an announcement in the Government Gazette, giving companies and service providers enough time to adapt to the new requirements. This legislative overhaul is a significant step towards enhancing the integrity of Singapore's business and financial systems.