Compliance and Ethical Considerations in Singapore

Compliance and ethical considerations in Singapore focus on stringent regulatory adherence, corporate governance, anti-money laundering (AML) measures, and fostering an ethical corporate culture aligned with local laws and international standards.

Key points include:

• Regulatory Framework Updates (2025): Singapore implemented the Corporate Service Providers Act 2024 and Companies (Amendment) Regulations 2025, effective June 2025, which enhance transparency, governance, and AML compliance. These require mandatory registration of Corporate Service Providers (CSPs) with ACRA, maintenance of detailed registers (controllers, nominee directors/shareholders), and impose significant fines for non-compliance (up to S$25,000 per violation).

• Corporate Governance: Companies must follow the Singapore Code of Corporate Governance, ensuring independent board composition, robust risk management, internal controls, and transparent disclosure of financial and non-financial information to regulators such as ACRA and SGX.

• Financial Reporting Compliance: Businesses must comply with Singapore Financial Reporting Standards (SFRS), submitting accurate financial statements timely to maintain legal standing and avoid penalties or dissolution.

• Ethical Standards and Culture: Singaporean organisations lead globally in ethics and compliance effectiveness, with high adherence to ethical governance, proactive ethical decision-making, and embedding values into business practices. For example, 90% of Singapore organisations reported making difficult decisions consistent with their values, surpassing global averages by 20%.

• Code of Conduct for SMEs: Essential elements include commitment to compliance with laws like the Personal Data Protection Act (PDPA) and Employment Act, clear ethical principles (integrity, honesty, fairness), inclusivity, and anti-discrimination policies. SMEs are encouraged to appoint compliance officers and regularly update their codes to reflect regulatory changes.

• AML/CFT/PF Obligations: CSPs and businesses must conduct customer due diligence to prevent money laundering, terrorism financing, and proliferation financing, with strict enforcement and penalties for breaches.

• Employment and Workplace Ethics: Compliance extends to employment laws, including fair hiring, anti-discrimination, and ethical workplace practices, which are integral to Singapore’s regulatory environment.

In summary, compliance and ethical considerations in Singapore require businesses to maintain rigorous governance, transparency, and ethical standards, supported by recent legislative enhancements and a strong culture of principled decision-making. This framework ensures Singapore remains a trusted and competitive business hub globally.