Singapore is planning to tighten its scrutiny on the approximately 3,000 firms offering corporate services in the country. A draft law proposes fines of up to $100,000 for companies and their senior management if they fail to comply with anti-money laundering (AML) and counter-terrorism financing obligations. The new Corporate Service Providers (CSP) Bill, alongside amendments to the Companies Act 1967 and Limited Liability Partnerships Act 2005, aims to improve the transparency of beneficial ownership and reduce misuse of corporate structures for illicit activities. The public can provide feedback on the proposed changes until March 25.

The bill will require all companies or individuals providing corporate secretarial services in Singapore to register with the Accounting and Corporate Regulatory Authority (Acra). This includes services such as forming companies and acting as directors or nominee shareholders. The proposed measures also seek to address the misuse of nominee directors, requiring that only registered CSPs can appoint them, ensuring they are fit and proper. The changes aim to enhance corporate transparency and support Singapore’s global reputation as a trusted financial hub, especially following the fallout from a significant money laundering case in 2023.