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From June 9, 2025, the Corporate Service Providers Act 2024 (CSP Act) will come into force. Singapore will implement systemic regulatory reforms for all Corporate Service Providers (CSPs) that provide company incorporation, nominee director, secretarial, registered address and finance-related services.
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What is a CSP (Corporate Service Provider)?
A CSP is an organization that provides the following professional services:
Company registration and business establishment services
Titular director/shareholder arrangements
Company Secretarial and Registered Address Services
Compliance services such as annual audits, tax, financial reporting, etc.
Other Business Services Related to ACRA Designation
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Three key reform priorities of the CSP Act
✅ 1. All CSPs must be registered by ACRA before practicing
Those who do not register will not be allowed to provide services and will face legal liability for violations.
✅ 2. Real-name verification must be accomplished through real-time videoconferencing
Key processes, including company registration, equity transfer, and sale and purchase of shell companies, must be video-authenticated with the director or controlling shareholder in person, and screenshots must be saved as audit evidence.
✅ 3. Full upgrade of directors' arrangements, KYC and AML due diligence
Directors must pass the Fit and Proper test
Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) Due Diligence (CDD) must be completed on all customer profiles
The due diligence process cannot be outsourced and the ultimate responsibility remains with the CSP
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Background and significance of the new law
The central purpose of this reform is:
Strengthening anti-money laundering and counter-terrorism regulation (AML/CFT)
Improving transparency and professional standards in the business services industry
Reduces legal and financial risks for clients using non-compliant service providers
