Registration for Overseas Entities who wish to Buy, Sell or Transfer Properties in Singapore as Anti-money Laundering Measure
Ministry of LawSpeakers
Summary
This question concerns requiring overseas entities transacting property in Singapore to register with the Accounting and Corporate Regulatory Authority and disclose beneficial owners as an anti-money laundering measure. Mr Murali Pillai inquired about adopting United Kingdom-style regulations and making ownership information accessible to the public and gatekeepers for enhanced due diligence. Senior Parliamentary Secretary Rahayu Mahzam stated that foreign entities carrying on business locally already file information on registrable controllers centrally to ensure transparency. She highlighted that real estate agents and lawyers are currently mandated to perform customer due diligence, including identifying beneficial owners and checking sources of funds. Senior Parliamentary Secretary Rahayu Mahzam added that agencies are assessing the utility of an overseas entities register and will consider the feasibility of public access to ownership data.
Transcript
15 Mr Murali Pillai asked the Minister for Law whether the Ministry will require overseas entities wanting to buy, sell or transfer properties in Singapore to register with the Accounting and Corporate Regulatory Authority and disclose the beneficial owners and principal officers of the entities along the lines of what has been introduced in United Kingdom in August 2022 as a measure against money laundering.
The Senior Parliamentary Secretary to the Minister for Law (Ms Rahayu Mahzam) (for the Minister for Law): Mr Deputy Speaker, the Member has asked if there should be a requirement for overseas entities to register with the Accounting and Corporate Regulatory Authority (ACRA) before they can transact in property in Singapore.
I understand that ACRA has implemented a register of registrable controllers for companies, foreign companies and limited liability partnerships (LLPs). Such entities are required to file information on their registrable controllers, that is, beneficial owners, centrally with ACRA. This serves to make the ownership and control of such entities more transparent and thus reduce opportunities for the misuse of such entities for illicit purposes. Foreign entities that carry on or intend to carry on business in Singapore are already required to be registered with ACRA and would be subject to existing requirements to file information on their beneficial owner with ACRA.
Currently, in line with the anti-money laundering and countering the financing of terrorism standards set by the Financial Action Task Force, professionals involved in the buying, selling and transfer of real estate, such as real estate agents and lawyers, are required to address the money laundering and terrorism financing risks. They have to assess their money laundering and terrorism financing risks, conduct customer due diligence including the identification of their customers’ beneficial owners, and where the risks of a customer are high, take enhanced measures such as source of funds checks.
Agencies are assessing whether a measure like the UK’s Register of Overseas Entities would be useful in our context.
Mr Deputy Speaker: Mr Murali Pillai.
Mr Murali Pillai (Bukit Batok): I thank the hon Senior Parliamentary Secretary for her answer. My supplementary question is as follows: whether MinLaw would be intending to make the information on beneficial ownership of shell companies which owns properties, accessible by public as well as financial institutions and professionals who act as gatekeepers, so they can do their customer due diligence better.
Ms Rahayu Mahzam: I note the underlying concerns in relation to the Member's suggestion. Let us take this back and consider whether this is something feasible in our context.