What’s the new ACRA 2024 Bill about?

ACRA Bill: Strengthening Data Protection

Key Changes for Business Owners

• Residential Address Requirement: Business owners must now provide a residential address. You may provide a contact address which will be displayed on public documents such as your company's BizFile. Note that, the contact address must be in the same jurisdiction (country) as your residential address.
• Alternate Address Is Now Known As Contact Address: The existing alternate address is now renamed as contact address. If you used an alternate address before the bill was enforced, it will automatically convert to a contact address when the new rules take effect.
• Specified Parties Access: Selected parties, like financial institutions, may access personal information for regulatory purposes, but they must safeguard its use.
• Waived Fee for Contact Address: Business Owners now no longer need to pay a fee of SGD 40 to register an alternate address.

Our Take

You can now keep your home address private without paying an additional fee (of SGD 40), thanks to the new residential address requirement.

Just make sure your contact address is somewhere reliable—like your office. The previous alternate address system is on its way out, so if you've been using one, get ready for it to become your new public contact address. Financial institutions will still get what they need for compliance, but they'll have to handle your info with care.

Actions Required from Business Owners

• Update Contact Address: If you want your contact address displayed publicly instead of your residential address, an update must be filed by 26 August 2024. Missed the date and need help? Stellar can streamline this process for you.
• Verify Information: Make sure your business contact details with ACRA are up-to-date. Let us handle the verification process to ensure all your information is accurate and compliant.

CSP Bill: Enhancing the Regulatory Regime

Key Changes for Business Owners

• Broader Registration Requirements: All entities providing corporate and/or accounting services must now register with ACRA and meet Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) requirements, even if they don't transact directly with ACRA.
• Higher Penalties: Penalties for non-compliance with AML/CFT requirements will increase significantly for CSPs. Senior management of CSPs may also be held personally liable for breaches.

Our Take

Time for a check-in with your current corporate service provider! If you work with a corporate service provider, make sure they're registered and playing by the new AML/CFT rules. This bill doesn't impact business owners directly, but if your CSP is not registered, it could create issues for your company down the line.

Actions Required

• Engage Registered CSPs: Ensure your current corporate service provider is compliant with the new regulations. Stellar is a fully compliant CSP, ready to keep your business within the law.

CLLP Bill: Enhancing Transparency and Accountability

Key Changes for Business Owners

• Disclosure of Nominee Arrangements: Companies must disclose nominee directors/shareholders and their nominators to ACRA. Only the nominee status will be public; the nominator’s details will be shared with public agencies but not made public.
• Accurate Registers: Companies and LLPs must maintain accurate registers of registrable controllers (beneficial owners) and verify/update this information annually.
• Increased Fines for Register Offences: The maximum fine for offences related to maintaining registers will increase from $5,000 to $25,000.

Our Take

Foreign business owners take note. If you have nominee directors or shareholders, you'll need to disclose this to ACRA. The good news? Only their nominee status is public—your privacy is somewhat protected. But keep those records squeaky clean and up-to-date, or you might face some hefty fines.

Actions Required

• Update Nominee Information: Ensure your company discloses all nominee arrangements to ACRA. Need help updating your records? Stellar’s experts can handle it for you efficiently and accurately.
• Maintain Accurate Records: Regularly verify and update your company's registers to avoid penalties. Let Stellar keep your records in perfect order and ensure full compliance. Need help finding a nominee director? Stellar can provide that service as well.

Conclusion

These legislative changes are crucial for enhancing data protection, preventing misuse of corporate structures, and combating financial crimes. Business owners must update their contact details, ensure compliance with the new regulatory requirements, and maintain accurate and transparent records to uphold Singapore's reputation as a trusted financial center and business hub. Staying on top of these changes will keep your business ahead of the curve and protect against potential pitfalls.

Stellar is here to help you navigate these new regulations effortlessly. Contact us today to ensure your business is fully compliant and ready for the future.