Singapore Enhanced Regulatory Framework for Corporate Service Providers
On 15 May 2015, Singapore has implemented a new enhanced regulatory framework for Singapore Corporate Services Providers.
The strengthened regime for Singapore Corporate Services Providers is expected to help further boost the reputation of Singapore as a trusted international financial and business centre with robust regulatory frameworks against money laundering and terrorism financing. It is also expected to raise the professional standards of the Singapore Corporate Services sector.
The requirements of the new regime are aligned with recommendations issued by the Financial Action Task Force, the global standard setter for anti-money laundering and counter terrorism financing. Singapore Corporate Services Providers are individuals or business entities that provide services as a business to third parties such as acting as a formation agent of legal persons. The new Singapore Corporate Services Providers regime will mitigate the risks that the Singapore Corporate Services Providers help to incorporate may be abused by criminals to set up complex or unusual business structures to conceal beneficial ownership, and reduce the transparency of transactions.
Under the enhanced regulatory framework, persons wishing to provide corporate services in Singapore will need to register as Filing Agents and Qualified Individuals. The framework also imposes terms and conditions on Filing Agents and Qualifying Individuals, and sets out the range of sanctions that the Singapore Accounting and Corporate Regulatory Authority may impose on errant Filing Agents and Qualifying Individuals who breach these terms and conditions.
