Singapore Toughens Corporate Laws Following $3 Billion Money Laundering Scandal
July 17, 2025
In 2023, Singapore faced a $33 billion money laundering scandal that revealed weaknesses in its business laws. In response, the country has strengthened its corporate laws. The case highlighted the weaknesses of established corporate structures and the necessity of robust Know Your Customer (KYC) and Anti-Money Laundering (AML) measures within the broader business environment. The Accounting and Corporate Regulatory Authority (ACRA), in conjunction with the Ministry of Finance (MOF), is to specifically exclude individuals who have been convicted of money laundering from being a director of a company.\
Such a change will be needed to close the loophole that existed under the previous Companies Act 1967, which did not contain any measures to disqualify. The civilians are given time until July 31, 2025, to provide feedback on this amendment. The proposal sets clear rules for thorough checks on all involved parties, especially those in leadership roles.
In addition to removing the ability of convicted money launderers to remain directors. The reforms would also advance the deregistration of inactive companies, thereby greatly limiting their potential use for illicit purposes. This action warns companies to close their inactive businesses quickly. If they don’t, they might unintentionally become partners in them.
The anti-money laundering requirements for public accountants will be extended to encompass the topic of proliferation financing. In addition to the financing of weapons of mass destruction, thereby placing Singapore in compliance with essential Financial Action Task Force (FATF) requirements. This development suggests that the field of AML obligations for firms dealing with or based in Singapore is expanding. Irrespective of whether some of the regulatory requirements involved in public limited companies will become simplified, the overall impression of these changes can be reduced to this. Singapore will further strengthen its position in managing financial crime, placing more responsibility on the businesses to maintain a healthy KYC and AML system as a part of the business process.
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