Singapore tightens anti-money laundering laws
- On Tuesday (Jul 2), Singapore implemented legislative changes to enhance its anti-money laundering regime, including higher fines for non-compliant corporate service providers (CSPs) and stricter regulations for nominee directorships in companies.
Parliament passed two bills amending existing laws for CSPs, companies, and limited liability partnerships (LLPs), following a debate where Second Finance Minister Indranee Rajah addressed MPs’ questions, including those about the new nominee director requirements.
Under the new rules, nominee directorships can only be arranged by a CSP unless the nominee is the sole proprietor of a registered CSP. Violations can result in fines of up to S$10,000. Additionally, CSPs must ensure that individuals appointed as nominee directors are “fit and proper,” or face fines up to S$100,000.
Nee Soon GRC MP Louis Ng inquired about the extent of steps CSPs must take to verify this.
