ACRA Cancels Registration of Company for AML/CFT Failures

  • Richard Marley
  • February 21, 2022
  • 2 minutes read
  • 1575

The Accounting and Corporate Regulatory Authority (ACRA) has revoked the registration of a company after it failed to implement enhanced measures to mitigate ML/TF risks.

According to the authority, SGCN Link and its sole director and shareholder Lew Chian Hwa got their registration canceled by the ACRA with effect from January 29, 2022.

ACRA canceled the company’s registration due to a lack of enhanced measures to mitigate money laundering and terrorism financing risks when establishing business partnerships.

SGCN is a provider of corporate secretarial services for business entities, like helping clients to file annual returns or to meet requirements stated in the Companies Act. 

As per ACRA investigations, Ms. Lew had filed documents with the authority for the companies owned by her clients even though she had “reasonable grounds” to believe that the information was not accurate. Moreover, the information was shared without the consent of her clients. 

“This is in breach of the terms and conditions prescribed in the Second Schedule of the ACRA (Filing Agents and Qualified Individuals) Regulations,” said the authority. 

ACRA investigations further showed that SGCN had failed to adhere to the terms and conditions mentioned in the authority’s regulations. 

“In particular, SGCN failed to perform enhanced customer due diligence measures to mitigate the money laundering and financing of terrorism risks in relation to the incorporation of the companies,” said ACRA in a press release.

“SGCN also failed to take reasonable measures to verify the identity of the beneficial owners of the companies before filing said information on beneficial ownership with ACRA.”

The authority said that registered qualified individuals and registered filing agents are required to ensure that filings with ACRA are carried out as per the instructions from their clients and that the filings are accurate and true. 

Lastly, it said that registered qualified individuals that breach their obligations could face penalties of up to S$10,000 per breach and/or have their registration suspended or canceled.

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