We refer to Mr Cheong Wing Kiat’s letter “Govt agencies can work together to curb suspicious transactions” (March 26). We share the writer’s concern on the misuse of identities for the appointment of directors of companies.

The Immigration and Checkpoints Authority and police may investigate the misuse of identities under the National Registration Act, the Penal Code, or the Computer Misuse Act, depending on the facts and circumstances of a case. Those who misuse identities face imprisonment and/or fines.

The Accounting and Corporate Regulatory Authority (Acra) will act against any person, including corporate service providers (CSPs), who file such appointments without the directors’ consent.

CSPs who have assisted individuals in filing such appointments and are found to have breached their anti-money laundering/countering the financing of terrorism obligations or acted negligently or wilfully may have their CSP registrations cancelled.

In addition, a false or misleading filing carries a maximum fine of $50,000 and/or imprisonment of up to two years.

The Ministry of Finance and Acra have also proposed a new CSP Bill to strengthen the regulatory regime for CSPs further. It will subject CSPs to more stringent compliance standards when performing corporate services, such as the appointment of directors. More details will be released in due course.

The Government will continue to review procedures so as to strengthen monitoring and sense-making capabilities across government agencies. We thank Mr Cheong for his suggestions and will consider them as part of our on-going review.

Yvonne Cheong
Director, Corporate Communications and Engagement Department
Accounting and Corporate Regulatory Authority (Acra)