ACRA Cancels Registration of Filing Agent and Qualified Individual for AML/CFT Breaches

Singapore, 19 January 2024 – The Accounting and Corporate Regulatory Authority (ACRA) cancelled the registrations of filing agent (RFA) LW Business Consultancy Pte Ltd (LWBC) and qualified individual (RQI) Wang Junjie (Wang) on 18 January 2024. The registrations were cancelled in view of 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 “ACRA Regulations”). 

2.     The AML/CFT breaches committed by LWBC include: 

(a) failing to perform additional customer due diligence measures when a customer is not physically present during onboarding;  (b) not inquiring if there exists any beneficial owner¹ in relation to some of its customers; and (c) failing to perform risk assessments in relation to some of its customers.

3.     Wang, as the RQI and director of LWBC, also did not supervise his employees in carrying out their duties which resulted in the breaches. Accordingly, ACRA determined that Wang no longer met the fit and proper criteria to remain registered as an RQI, and Wang’s registration as an RQI was consequently cancelled.

4.     ACRA's investigations into LWBC and Wang are part of ACRA's ongoing investigations into the role played by RFAs and RQIs involved in one of Singapore’s largest AML operations. As there are ongoing investigations related to this matter, we are unable to share more details.  

Obligations of RQIs and RFAs

5.     RQIs and RFAs provide corporate secretarial services for business entities, such as helping customers to incorporate companies, file annual returns and fulfil other filing requirements under the Companies Act 1967 or other Acts under ACRA’s purview. RQIs and RFAs are required to perform customer due diligence measures in accordance with the ACRA Regulations, and conduct their business in such a manner as to guard against the facilitation of money laundering and the financing of terrorism.  RQIs and RFAs must also satisfy statutory requirements such as being fit and proper persons, to be registered or continue to be registered.

6.     RQIs and RFAs who breach their statutory obligations may be subject to enforcement actions, such as financial penalties of up to $10,000 or $25,000 per breach respectively or have their registrations with ACRA suspended or cancelled. ACRA has planned additional measures such as enhancing the penalties on errant service providers, to strengthen the effectiveness of our anti-money laundering regime. The proposals had undergone public consultation earlier, and we are working with the Ministry of Finance to table them in Parliament in the coming months. 

7.     RQIs and RFAs play an important role in helping to detect and combat illicit activities. ACRA takes a serious view of any breach of AML/CFT regulations and will not hesitate to take firm enforcement action against non-compliant service providers. Between 2021 and 2023, ACRA had cancelled or suspended the registrations of 17 RQIs and RFAs.

8.     Anyone who has reason to believe that a RQI or a RFA is suspected to have breached his or her statutory obligations should report the matter to ACRA. 

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1 (a) an individual who ultimately owns all of the assets or undertakings of the customer (whether or not the customer is a body corporate);

(b) an individual who has ultimate control or ultimate effective control over, or has executive authority in, the customer; or

(c) an individual on whose behalf the customer has employed or engaged the services of the registered filing agent;

ACCOUNTING AND CORPORATE REGULATORY AUTHORITY

19 JANUARY 2024