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<\/figure>\n\n\n\n Mandatory CSP Registration<\/strong><\/p>\n\n\n\n All entities offering services such as company incorporation, secretarial support, nominee directorships, or registered addresses must be registered with the Accounting and Corporate Regulatory Authority (ACRA) as Corporate Service Providers (CSPs).<\/p>\n\n\n\n Operating without registration is a criminal offence and may lead to fines or enforcement actions.<\/p>\n\n\n\n Tighter Nominee Director Oversight<\/strong><\/p>\n\n\n\n Only registered CSPs are authorized to appoint nominee directors, and must ensure the candidate’s suitability and compliance record.<\/p>\n\n\n\n Unauthorised arrangement of nominee directors may result in fines of up to SGD 10,000.<\/p>\n\n\n\n Tip: Companies are advised to gradually transition from nominee directors by having key executives apply for Employment Pass (EP) under self-sponsorship to reduce future compliance risks.<\/p>\n\n\n\n Mandatory Video Identity Verification \u2014 “Face-to-Face” Goes Remote<\/strong><\/p>\n\n\n\n For any non-face-to-face transactions, CSPs must verify the identity of clients via real-time video call. This applies to:<\/p>\n\n\n\n \u25cf At least one proposed director (excluding nominee directors), OR<\/p>\n\n\n\n \u25cf A proposed member holding more than 50% voting rights, OR<\/p>\n\n\n\n \u25cf A natural person authorized to represent a corporate member.<\/p>\n\n\n\n This requirement applies to remote incorporations, share transfers, directorship changes, and shell company transactions.<\/p>\n\n\n\n Ongoing Due Diligence Requirements:<\/p>\n\n\n\n \u25cf Risk assessment<\/strong>: Classify clients by risk level and apply appropriate controls.<\/p>\n\n\n\n \u25cf Transaction monitoring<\/strong>: Ensure ongoing activity aligns with client profile.<\/p>\n\n\n\n \u25cf Recordkeeping<\/strong>: Maintain ID documents, transaction logs, signed forms, and video records for at least 5 years.<\/p>\n\n\n\n \u25cf Delegation of compliance<\/strong>: For high-risk clients, CSPs may engage lawyers, accountants, or group CSPs\u2014but ultimate responsibility remains with the original provider.<\/p>\n\n\n\n \u25cf No proxy signing<\/strong>: CSPs may not sign directors\u2019 declarations (e.g. Form 45) on behalf of clients; must be personally signed and filed.<\/p>\n\n\n\n Enhanced Internal Compliance Standards for CSPs<\/strong><\/p>\n\n\n\n All CSPs must implement a robust internal compliance framework, including:<\/p>\n\n\n\n \u25cf Customer Due Diligence (CDD) and continuous monitoring<\/p>\n\n\n\n \u25cf Suspicious Transaction Reporting (STR) protocols<\/p>\n\n\n\n \u25cf Risk assessment systems<\/p>\n\n\n\n \u25cf Staff background checks and ongoing training<\/p>\n\n\n\n \u25cf Secure, long-term video and document retention (\u22655 years)<\/p>\n\n\n\n Who Will Be Affected?<\/strong><\/p>\n\n\n\n \u25cf All companies registered in Singapore or using local secretarial services<\/p>\n\n\n\n \u25cf All businesses appointing nominee directors or incorporating remotely<\/p>\n\n\n\n \u25cf All providers offering corporate services, including secretarial, accounting, or registered address services<\/p>\n\n\n\n Summary & Strategic Advice<\/strong><\/p>\n\n\n\n Under the Singapore Companies Act, every company must appoint at least one local resident director. Holders of Singapore EPs or PR status qualify for this role.<\/p>\n\n\n\n For foreign businesses without suitable local candidates, nominee directors remain a viable interim solution. However, after the new regulation, only CSPs registered with ACRA may legally provide nominee directorship services.<\/p>\n\n\n\n Failure to comply could lead to fines of up to SGD 10,000.<\/p>\n\n\n\n Even though nominee directors do not engage in operational control, their compliance risk exposure is real. Businesses are encouraged to consider transitioning to self-sponsored EP applications for senior executives after incorporation to reduce uncertainty and ensure greater governance control.<\/p>\n\n\n\n What’s Next?<\/strong><\/p>\n\n\n\n Immediate Action Steps:<\/strong><\/p>\n\n\n\n \u25cf For existing Singapore companies:<\/strong><\/p>\n\n\n\n Contact your secretary firm to ensure CSP registration compliance.<\/p>\n\n\n\n \u25cf For companies planning to enter Singapore<\/strong>: <\/p>\n\n\n\n Start early and align with new compliance requirements to avoid regulatory pitfalls.<\/p>\n\n\n\n Need help navigating the CSP regime, setting up remotely, or structuring a compliant nominee solution? Talk to our experts today!<\/p>","protected":false},"excerpt":{"rendered":" Starting 9 June 2025, Singapore will officially enforce the Corporate Service Providers (CSP) Regulation, introducing a landmark overhaul to its corporate compliance framework. It is now the first jurisdiction in the world to mandate real-time video verification for...<\/p>","protected":false},"author":1,"featured_media":6890,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[],"class_list":["post-6895","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\n![\"\"](\"https:\/\/www.elitestage.cn\/wp-content\/uploads\/2025\/06\/5-4.jpg\")
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