Singapore is stepping up its game when it comes to corporate regulation. Starting 9 June 2025, the Corporate Service Providers Act 2024 (CSP Act) officially kicks in — a major update that will reshape how incorporation, nominee, and corporate compliance services are delivered across the country.

This isn’t about fixing something broken. It’s about evolving with the times, keeping pace with international standards, and tightening controls where it matters — particularly in the fight against money laundering and opaque ownership structures.

So, what is the CSP Act really about?

At its core, this new legislation is designed to bring greater accountability, transparency, and professionalism to the CSP industry. Anyone providing incorporation or directorship services — whether to local businesses or overseas clients — will now be subject to clearer rules and tighter oversight.

This move brings Singapore in line with global best practices, reinforcing our position as a trusted hub for doing business.

What are the key changes?

Mandatory Registration for All CSPs

From June 2025, all CSPs — even those who don’t file documents directly with ACRA — must be registered. This includes:

• Local firms offering incorporation or nominee services
• Overseas entities with operations or clients managed from Singapore
• Individuals offering corporate secretarial or business advisory services

This will create a level playing field, ensuring all providers operate under the same regulatory expectations.

AML/CFT Compliance is No Longer Optional

Registered CSPs will need to implement robust anti-money laundering and counter-financing of terrorism (AML/CFT) controls. That means:

• Proper due diligence on clients (CDD/EDD)
• Continuous monitoring of transactions and client profiles
• Strong recordkeeping systems
• Internal training programs to keep teams up to speed

Non-compliance isn’t just a slap on the wrist — fines can go up to SGD 100,000 per breach, and directors or managers may be held personally responsible.

Nominee Services Now Come with Strings Attached

CSPs can only arrange nominee directorships if they’re registered — and they must ensure those nominees are fit and proper. Key expectations include:

• Conducting due diligence before appointing nominees
• Maintaining documented relationships between the nominator and nominee
• Declaring nominee relationships to ACRA

Skipping these steps or appointing unsuitable nominees could also cost you SGD 100,000 per offence, and yes, senior management can be on the hook.

ACRA’s Powers Are Expanding

ACRA will have sharper teeth under the CSP Act. They can:

• Show up for onsite inspections
• Issue compliance orders
• Fine or sanction CSPs
• Even publish names of non-compliant firms

This means compliance isn’t just about paperwork anymore — it’s about demonstrating you’ve got systems in place that actually work.

What Should You Be Doing Right Now?

If you’re a CSP or corporate services firm, now’s the time to take a hard look at your internal practices. Ask yourself:

• Are our AML policies up to scratch?
• Is our team trained to meet the new compliance bar?
• Do we have proper procedures in place for nominee services?
• Are we ready for an ACRA inspection?

As someone who’s been working in AML and compliance for over 15 years, I can’t stress enough how important it is to take these updates seriously. Done right, this is your chance to build credibility and trust — and differentiate your services in a more competitive market.

How I Can Help

If you’re a business owner looking to expand into Singapore:

I offer hands-on support to help you get started the right way, including:

• Incorporation and entity structuring
• Nominee director services with full due diligence
• Statutory compliance and corporate secretarial support
• Tax, accounting, and GST registration
• Employment pass applications and HR setup
• Banking introductions and KYC support

All built with compliance in mind — so you can focus on growing your business with peace of mind.

If you’re already a CSP, law firm, or accounting firm:

I work with corporate service providers who want to strengthen their compliance setup under the new regime. My offerings include:

• Tailored AML/CFT workshops for staff
• Reviews of your existing policies and controls
• Compliance toolkits and documentation templates
• Mock audits and inspection readiness assessments

Let’s make sure you’re ready — not just to comply, but to lead confidently under the new regulatory expectations.

📧 savita.dubey@khaizanconsulting.com
📞 +65 8025 3761
🌐 www.khaizanconsulting.com

Let’s have a conversation before the new rules take hold. Being prepared isn’t just smart — it’s essential.

Source:

Transitional Requirements for Existing RFAs and RQIs

Corporate Service Providers Regulations 2025 – Singapore Statutes Online

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