Forum: Preserve balance between robust safeguards and business-friendly environment
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The implementation of the Corporate Service Providers Act in June 2025 marked a significant step in Singapore’s ongoing efforts to strengthen anti-money laundering controls and safeguard the integrity of its business environment.
The new framework expands regulatory oversight of corporate service providers and reinforces Singapore’s commitment to maintaining high standards of corporate governance and transparency.
As compliance requirements continue to evolve, it is equally important to ensure that effectiveness remains the primary objective.
Corporate service providers play an important gatekeeping role within Singapore’s regulatory framework. They are responsible for conducting customer due diligence, establishing beneficial ownership information, verifying identities and assessing risks before companies commence operations. In many cases, they represent the first line of defence against the misuse of corporate structures.
The effectiveness of any compliance framework should be measured by the ability to identify and mitigate genuine risks. As regulatory obligations become more detailed, there is a risk that disproportionate resources may be directed towards documentation and administrative processes, reducing the capacity available for substantive risk assessment and professional judgment.
Singapore’s regulatory success has long been founded on a pragmatic risk-based approach that balances robust safeguards with an efficient and business-friendly environment. Preserving this balance will remain important as international expectations continue to increase.
Regulatory technology, such as automated customer due diligence workflows and digital identity verification, can help compliance teams manage growing regulatory obligations more efficiently while maintaining robust controls. This enables compliance professionals to focus on higher-risk cases instead of routine administrative tasks.
Continued emphasis on risk-based supervision and technology-enabled compliance will help ensure that Singapore remains both a trusted jurisdiction and a globally competitive business hub.
Calvin Zhang Song
