Financial Crime World

Singapore Reopens System for Companies to Disclose Beneficial Owners

Compliance Deadline: 30 June 2021, with $5,000 Fines for Non-Compliance

The Accounting and Corporate Regulatory Authority (ACRA) has reopened the system through which companies in Singapore are required to identify their beneficial owners and submit this information to a regulator. The deadline for compliance is set at 30 June 2021, with fines of up to $5,000 applicable for non-compliance unless exempted.

Background: Requirement Introduced in 2017

The requirement to disclose beneficial ownership information was first introduced in 2017. Companies and Limited Liability Partnerships (LLPs) are required to maintain a list of their beneficial owners on the Register of Registrable Controllers (RORC). In July last year, an additional requirement was introduced that mandated the submission of this information to ACRA. However, this process was suspended in September before being reopened on 1 February.

Reintroduction of Requirement: Enhancing Transparency

Mayumi Soh, a partner at Pinsent Masons MPillay, notes that the reintroduction of this requirement is part of ACRA’s efforts to uphold Singapore’s reputation as a trusted financial hub and enhance transparency around ownership and control of corporate entities. However, it is worth noting that the information contained in the central RORC will only be made available to law enforcement agencies for purposes related to administering or enforcing laws under their jurisdiction, with public access not being granted.

Consequences of Non-Compliance

Companies that fail to comply with this requirement by the 30 June deadline may face fines of up to $5,000. Therefore, it is crucial for companies and LLPs in Singapore to take immediate action to ensure they are compliant with this requirement.

Key Takeaways:

  • The system for companies to disclose beneficial owners has reopened.
  • The deadline for compliance is 30 June 2021.
  • Fines of up to $5,000 may be applicable for non-compliance.
  • Companies and LLPs in Singapore must take immediate action to ensure compliance.