ACRA Takes Action Against SGCN Link and Its Director for Compliance Failures
SINGAPORE: The Accounting and Corporate Regulatory Authority (ACRA) has cancelled the registration of SGCN Link and its sole director and shareholder, Lew Chian Hwa, due to their failure to implement enhanced measures to combat money laundering and terrorism financing risks during the incorporation of companies. The cancellation took effect on January 29, as announced by ACRA on Monday (Feb 21).
SGCN Link and Ms. Lew provided corporate secretarial services, assisting clients with filing annual returns and ensuring compliance with the Companies Act. However, ACRA’s investigations uncovered that Ms. Lew submitted documents for her clients’ companies despite having “reasonable grounds” to believe that the information was inaccurate. Notably, she filed these documents without proper authorization from her clients.
“This action violates the terms and conditions outlined in the Second Schedule of the ACRA (Filing Agents and Qualified Individuals) Regulations,” the authority stated.
The investigations further revealed that SGCN Link breached the regulations by failing to conduct enhanced customer due diligence measures necessary to mitigate the risks associated with money laundering and terrorism financing in relation to the incorporation of companies. Additionally, SGCN Link did not take adequate steps to verify the identities of the beneficial owners of the companies before submitting their information to ACRA.
ACRA emphasized that registered qualified individuals and filing agents are required to ensure that all filings are completed in accordance with their clients’ instructions and that the information provided is both accurate and truthful. Registered individuals who fail to meet these obligations may face financial penalties of up to S$10,000 for each violation and may also have their registration suspended or revoked.
