Financial Crime World

Singapore’s ACRA Cracks Down on AML/CTF Compliance: Regulatory Requirements Take Center Stage

In its efforts to maintain strict standards of anti-money laundering (AML) and combating the financing of terrorism (CFT), Singapore’s Accounting and Corporate Regulatory Authority (ACRA) conducts regular inspections on accounting entities and public accountants. The regulator has imposed sanctions on those who fail to meet these requirements, sending a strong message that non-compliance will not be tolerated.

Regulatory Requirements

Under the Accountants (Prevention of Money Laundering and Financing of Terrorism) Rules 2023, ACRA’s AML/CFT review process involves a series of steps:

  • Entity reviewers, appointed by the Public Accounting Oversight Committee (PAOC), conduct on-site reviews to assess accounting entities’ and public accountants’ compliance with AML/CFT requirements.
  • Upon concluding the review, entity reviewers submit their findings to the Registrar, who in turn reports to the PAOC if any breaches are detected.

Sanctions for Non-Compliance

The PAOC then decides on the outcome of the review, imposing sanctions on those found non-compliant. These penalties can include:

  • Revocation or suspension of approval
  • Restrictions on public accountancy services
  • Fines up to $25,000 per breach
  • Censure

Individual Practitioners

Similarly, individual practitioners found non-compliant may face:

  • Cancellation of registration
  • Suspension for up to 12 months
  • Restrictions on provision of public accountancy services
  • Fines up to $10,000 per breach
  • Censure

The PAOC has made it clear that AML/CFT compliance is a top priority, and those who fail to meet the required standards will be held accountable.

Maintaining Singapore’s Reputation

The move is seen as a significant step towards maintaining Singapore’s reputation as a robust financial hub, where regulatory standards are strictly enforced to prevent illicit activities. By cracking down on non-compliance, ACRA aims to maintain the country’s strong reputation and ensure that its financial sector remains secure and trustworthy.