Financial Crime World

Corporate Compliance Programs Best Practices in Singapore

Key Offences and Penalties

Singapore Customs has implemented various regulations and laws to ensure that businesses comply with customs requirements. Non-compliance can result in significant penalties.

  • Maximum Composition Sum: The maximum composition sum that can be levied on offenders is $10,000 (per count).
  • Section 5 of the Strategic Goods Control Act: Transfer of strategic goods without a valid permit.
  • Section 6(1) of the Strategic Goods Control Act: Brokering of strategic goods without registering as a broker with Singapore Customs.
  • Section 9 of the Strategic Goods Control Act: Breach of condition of permit or registration.

Regulations and Compliance

To ensure compliance, businesses must adhere to various regulations and laws administered by Singapore Customs.

  • Regulations of Imports and Exports Act (RIEA) & Regulations of Imports and Exports Regulation (RIER): Maximum composition sum that can be levied on offenders is $5,000.
  • Section 28(1)(a) of the RIEA: Declaration of goods for importation without a valid permit.

Warehouse and Storage

To maintain compliance, businesses must follow strict guidelines for warehouse and storage operations.

  • Conduct Regular Briefing Sessions: Remind staff and clients on LWS requirements.
  • Keep Proper Records: Keep proper records of the time-in and time-out of any persons visiting the warehouse for the collection of goods.
  • Direct Route to Checkpoint: Remind drivers to proceed directly to the checkpoint and not stop en route at other locations to collect other goods.

TradeNet Declaration

To ensure smooth trade operations, businesses must follow specific guidelines for TradeNet declarations.

  • Alert Importers: Declaring agents are encouraged to alert their importers immediately after the declaration of TradeNet permits with GF condition.
  • Sufficient Funds: Importer to ensure sufficient funds in his bank account for deduction before instructing the declaring agent to make the declaration.

Good Compliance Practices

To promote good compliance practices, businesses should:

  • Attend Singapore Customs Academy Courses: Attend courses and disseminate information to the rest of your company staff.
  • Conduct Due Diligence Checks: Conduct own due diligence checks (e.g., on business partners, end-users & end-use).
  • Contact SC if in Doubt: Contact SC if in doubt.

Voluntary Disclosure Programme (VDP)

To encourage voluntary disclosure of errors and omissions, Singapore Customs has implemented the VDP programme.

  • Voluntary Disclosure: Individuals or companies to voluntarily come forward to disclose errors and omissions committed by them under laws and regulations administered and enforced by Singapore Customs.
  • Complete Disclosure: Disclosure must be complete with all relevant information pertaining to the errors and omissions, made before notice or commencement of audit checks or investigations.