The Accounting and Corporate Regulatory Authority (ACRA) has announced that the Corporate Service Providers (CSP) Act and accompanying regulations will officially take effect on 9 June 2025. This significant regulatory update is aimed at strengthening Singapore’s anti-money laundering (AML) framework and reinforcing the importance of Customer Due Diligence (CDD) within the CSP sector.
As key gatekeepers of Singapore’s corporate landscape, CSPs play a critical role in safeguarding against financial crimes. The new legislation introduces enhanced compliance obligations, tighter supervision, and greater accountability for CSPs to ensure they are not exploited for illicit activities such as money laundering and terrorism financing.
Key Regulatory Highlights:
- Stricter CDD and AML Controls: CSPs must implement robust CDD processes, including verifying the identities of Ultimate Beneficial Owners (UBOs), monitoring ongoing business relationships, and promptly reporting suspicious transactions.
- Mandatory Licensing: All CSPs must obtain the required licenses before the effective date. Operating without a valid license will be illegal and subject to enforcement actions.
- Stronger Supervisory Powers for ACRA: The new Act empowers ACRA to conduct regular inspections and take swift enforcement action against non-compliant CSPs.
These changes highlight the critical need for CSPs to review and strengthen their compliance programs immediately. With heightened regulatory expectations, weak AML and CDD controls could result in severe penalties and reputational damage.
Industry professionals are urged to familiarize themselves with the upcoming regulations and take proactive measures to comply.
For detailed guidance, refer to:
