A Guide to Background Checks Prior to Singapore Company Incorporation |
Posted: August 15, 2019 |
The international enforcement authorities are tightening their noose on elements that promote nefarious activities; such as money laundering and terrorism financing by implementing robust regulatory frameworks across international jurisdictions. To be able to incorporate your company in Singapore, you must learn some of the initial checks being done. The Financial Action Task Force (FATF), a premier inter-governmental agency is leading the way in establishing international standards to strengthen the Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) efforts. Singapore has followed FATF’s lead and recommendations in this regard to protect its credibility as an international financial and business center. As an open economy, with pro-business policy, Singapore facilitates easy incorporation of companies and offshore companies. Hence, there is a pertinent risk of this ease of doing business being used malignantly by disruptive and unscrupulous elements by incorporating companies with complex ownership structures. To curtail such exploitative activities and to mitigate the risk of unwittingly facilitating such activities, Singapore introduced a framework for the Corporate Service Providers (CSPs) obligating them to conduct checks before incorporating companies on behalf of their clients. Knowing Your CustomerSince the enforcement of the enhanced regulatory Framework for Corporate Service Providers (CSPs) on 15 May 2015, Corporate Service Providers (CSPs) and Registered Filing Agents (RFAs) are required to screen their potential customers for any signs of money laundering (ML) and terrorism financing (TF) risks. The Framework aimed at combating ML and FT activities includes regulations for CSPs that perform functions such as company incorporation and on-going corporate filings for their customers. Read more about background checks prior to Singapore company incorporation at Rikvin.com.
|
||||||||||||||||||
|