Recent legislative changes in Singapore, effective from July 2, aim to bolster transparency regarding nominee directors and shareholders. Companies are now required to disclose comprehensive information on nominee arrangements to the Accounting and Corporate Regulatory Authority (Acra). This includes particulars of nominee directors and shareholders, as well as the identities of their nominators.

Under the Companies and Limited Liability Partnerships (LLPs) (Miscellaneous Amendments) Bill, Acra will publicly disclose which directors and shareholders are nominees, enhancing oversight and accountability in corporate governance. This move is part of Singapore’s efforts to strengthen its anti-money laundering framework and regulatory transparency.

To ensure accuracy, companies and LLPs must maintain updated registers of controllers, with penalties for non-compliance raised to $25,000. Individuals providing false information face similar fines. Annual verification of controller information is now mandatory, reflecting Singapore’s commitment to robust corporate governance practices.

The Corporate Service Providers Bill, also passed on July 2, addresses potential misuse of nominee directorship arrangements. Corporate service providers play a crucial role in facilitating compliance for overseas clients needing Singapore-resident directors. Stricter regulations now require providers to ensure nominees are fit and proper, with penalties up to $100,000 for non-compliance.

The Acra (Registry and Regulatory Enhancements) Bill complements these changes by enhancing data protection and digital communications between businesses and the government. It empowers Acra to collect additional information for secure digital transactions and streamlines regulatory oversight.

These legislative updates underscore Singapore’s proactive stance in aligning with global best practices, ensuring robust corporate governance standards similar to leading jurisdictions such as Britain and Hong Kong. The reforms are pivotal in maintaining Singapore’s reputation as a trusted business hub with a transparent and accountable corporate environment.