Singapore Introduces Beneficial Ownership Transparency Rules Amid Global Push Against Money Laundering and Terrorist Financing
Enhancing Transparency and Combating Financial Crimes
In a move to strengthen its anti-money laundering (AML) and counter-terrorism financing (CFT) regime, Singapore has introduced new rules requiring companies and limited liability partnerships (LLPs) to maintain a register of controllers. This initiative aims to improve transparency by ensuring that information on beneficial owners is accurate and adequate, and that competent authorities have timely access to such information.
Background
The Financial Action Task Force (FATF), a global body that sets standards for AML/CFT, evaluated Singapore’s AML/CFT framework in 2016. While the report noted progress made by Singapore in strengthening its regime, it also highlighted significant gaps and deficiencies, particularly in relation to beneficial ownership transparency.
New Rules
Under the new rules, companies and LLPs are required to maintain a register of controllers, which includes:
- Full name
- Residential address
- Nationality
- Identification particulars
- Date of birth
- Date on which the person becomes or ceases to be a controller
The register must be kept up-to-date and made available to the Accounting and Corporate Regulatory Authority (ACRA) and law enforcement authorities upon request.
Global Trend
Singapore’s move follows a global trend towards increasing transparency in company ownership structures. Many countries, including:
- Hong Kong
- Germany
- Australia
- New Zealand
- Indonesia
- Ireland
have already introduced or are planning to introduce similar rules.
Confidentiality
In contrast to some other jurisdictions where the register of controllers is publicly accessible, Singapore’s new regime prohibits companies from disclosing the register or any particulars contained in it to the public. This means that investors who are concerned about their confidential information being made public can choose to establish their companies in Singapore without compromising on confidentiality.
Importance of Compliance
The introduction of these new rules underscores the importance of complying with AML/CFT regulations, particularly for individuals and entities involved in international transactions. As the global push against money laundering and terrorist financing continues to intensify, it is crucial that investors and businesses stay informed about the latest developments and requirements in this area.
Conclusion
Singapore’s introduction of beneficial ownership transparency rules is a significant step towards enhancing transparency and combating financial crimes. By complying with these new regulations, individuals and entities involved in international transactions can demonstrate their commitment to ethical business practices and help prevent the misuse of companies and LLPs for money laundering and terrorist financing purposes.