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Singapore Tightens AML Rules for Companies and LLPs

Singapore Strengthens Anti-Money Laundering Framework with New Disclosure Rules for Companies and LLPs

  • Modified On: January 12, 2026

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Summary:

Singapore has introduced the Companies and Limited Liability Partnerships (Miscellaneous Amendments) Act 2024, effective from 16 June 2025, to strengthen its anti-money laundering framework. The Act tightens disclosure rules for company controllers, nominee directors, and shareholders to improve ownership transparency. It aligns Singapore’s regulations with the Financial Action Task Force (FATF) standards and mandates accurate, up-to-date records of beneficial ownership. Nominee directors and shareholders must now declare whom they represent, reducing the risk of hidden ownership. Working alongside the Corporate Service Providers (CSP) Act 2024, only licensed professionals can offer nominee services. These measures reinforce Singapore’s reputation for integrity, accountability, and global financial trust.

Singapore continues to be a strategic financial hub for global investors, as it takes another decisive step to reinforce its global reputation. The authorities have introduced the Companies and Limited Liability Partnerships (Miscellaneous Amendments) Act 2024, which has been effective from 16th June 2025. With this Act, Singapore aims to close loopholes in corporate ownership transparency and prevent the misuse of its nominee agreements.

These amendments have been put into place to target vulnerabilities in its corporate system that may have been exploited for illicit purposes like money laundering or tax evasion. The government of Singapore is tightening disclosure requirements and improving oversight, so that businesses operating in the country maintain a high level of integrity and accountability.

Professional teams of consultants providing advisory services related to Limited Liability Partnership (LLP) Company Formation can help businesses comply with this new set of norms.

Key Objectives of the New Amendments

The goal of this Act is to enhance the transparency of beneficial ownership. It involves identifying the real individuals who ultimately control or benefit from a company or partnership. The anti-money laundering (AML) framework of Singapore benefits in three major ways as a result.

1. Alignment with Global Standards

The authorities have updated the disclosure obligations for:

  • Company Controllers
  • Nominee Directors
  • Shareholders
These changes align Singapore’s AML regime with the latest recommendations of the Financial Action Task Force (FATF), ensuring consistency with international standards.

2. Improved Accuracy in Disclosures

With the new Act in place, businesses must now have to keep all the details of beneficial ownership accurate, current, and complete.

3. Greater Transparency in Nominee Arrangements

Those acting as nominee directors or shareholders need to declare who they represent. This measure is likely to prevent hidden or deceptive ownership structures.

All these changes have been incorporated to help regulatory bodies and law enforcement agencies gain better visibility into corporate ownership and control. The norms are likely to reduce the risk of companies being used as platforms to carry out illegal activities.

Association with the Corporate Service Providers Act

The new amendments work hand in hand with the Corporate Service Providers (CSP) Act 2024 and CSP Regulations 2025, which came into force on 9th June 2025. As per these regulations, it is illegal for anyone to act as a nominee director “by way of business” unless:

  • A licensed corporate service provider makes the arrangement
  • The individual fulfills all fit and proper criteria set by the authorities
As a result of this decision, only qualified and vetted professionals can offer nominee services. This further reduces the chances of misuse, thereby strengthening the accountability of those involved in corporate governance.

Compliance, Timelines, and Penalties

With the new set of norms in place, it’s imperative for businesses, foreign companies, and limited liability partnerships (LLPs) to review and update their internal compliance processes before June 2025. Also, it’s mandatory to maintain timely and accurate records in the Register of Controllers and Register of Nominee Directors.

In case any business provides false information or fails to comply, it can face significant fines, legal penalties, or custodial sentences. The ultimate consequence depends on the severity of the breach.

Strengthening Singapore’s Reputation

The modern AML regime in Singapore reflects its commitment to transparency, investor protection, and responsible business activities. The government is tightening the rules around nominee arrangements and beneficial ownership disclosures to maintain its stature as one of the most trusted jurisdictions for corporate activity.

The IMC Group continues to be a trusted partner for limited liability partnership (LLP) Company formation in Singapore. With professional advisory solutions, businesses can set up a legitimate enterprise and adhere to the established norms in the country.

Author Bio:
Shivani
Shivani Bhakar is a corporate governance and regulatory affairs specialist with a solid background in advisory services for companies and LLPs in Singapore. She holds extensive experience guiding organisations through entity formation, nominee director compliance and beneficial ownership disclosures. Her work emphasises clarity in regulatory obligations, practical steps for compliance and maintaining high standards of corporate transparency.

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