Singapore: The Accounting and Corporate Regulatory Authority (ACRA) canceled the registrations of the filing agent LW Business Consultancy Pte Ltd (LWBC) and its qualified individual Wang Junjie (Wang). This action was taken due to breaches of anti-money laundering and countering the financing of terrorism (AML/CFT) controls under the ACRA (Filing Agents and Qualified Individuals) Regulations 2015.
The specific AML/CFT violations by LWBC included:
- Failing to perform additional customer due diligence when the customer was not physically present during onboarding.
- Not inquiring about the existence of any beneficial owner related to some customers.
- Failing to conduct risk assessments for some customers.
Wang, as the RQI and director of LWBC, failed to supervise his employees, leading to these breaches. Consequently, ACRA determined Wang no longer met the fit and proper criteria to remain registered as an RQI, and his registration was canceled.
These actions are part of ACRA’s broader investigations into the role of RFAs and RQIs in one of Singapore’s largest AML operations. Due to ongoing investigations, further details cannot be shared at this time.
Obligations of RQIs and RFAs
RQIs and RFAs provide corporate secretarial services for business entities, including company incorporation, filing annual returns, and meeting other requirements under the Companies Act 1967 or other Acts within ACRA’s jurisdiction. They must perform customer due diligence in line with the ACRA Regulations and operate in a manner that prevents money laundering and terrorism financing. They must also be fit and proper persons to be registered or continue their registration.
RQIs and RFAs who fail to meet their statutory obligations may face enforcement actions, including financial penalties up to $10,000 or $25,000 per breach, or have their registrations suspended or canceled. ACRA plans to introduce stronger penalties for non-compliant service providers to enhance the effectiveness of its anti-money laundering regime. These proposals, which have undergone public consultation, are expected to be tabled in Parliament soon.
RQIs and RFAs are crucial in detecting and combating illicit activities. ACRA takes breaches of AML/CFT regulations seriously and will take firm enforcement actions against non-compliant providers. Between 2021 and 2023, ACRA cancelled or suspended the registrations of 17 RQIs and RFAs.
Anyone who suspects an RQI or RFA of breaching their statutory obligations should report the matter to ACRA.
Source: ACRA
