How to conduct a thorough Singapore business check

July 24, 2024

Ebooks , Education

Singapore is a leading destination for both startups and established companies looking to expand in the Asia-Pacific region. The country’s healthy economy, pro-business policies and strategic location on key global trade, shipping and flight paths make it highly attractive to entrepreneurs and investors alike. According to McKinsey, around 43% of Southeast Asia’s unicorns – companies valued at over US$1 billion – are headquartered here^[1].

As a global financial hub, Singapore is committed to maintaining its reputation for transparency and regulatory compliance. The government’s proactive stance against financial crimes is supported by clear and internationally-aligned policies and regulations, expecting businesses within its borders to uphold the highest standards of integrity and accountability.

To this end, Singapore has a strong legal framework in place to fight money laundering (ML) and terrorist financing (TF), with highly effective coordination that involves all key authorities^[2].

Organisations that operate in this market, especially financial institutions, payment service providers, insurance companies, investment firms, real estate agents, lawyers, accountants and dealers in high-value goods, should therefore be well-equipped to conduct thorough ML/TF risk assessments. And these should not only focus on individual customers, but also extend to corporate clients, merchants and other types of legal entities and arrangements they’re engaging with.

Criminals can use legitimate-seeming businesses as a front for their illicit activities, and without proper Know Your Business (KYB) measures in place, organisations may unknowingly facilitate these activities. This can result in financial losses due to fraud, significant fines and reputational damage. Read on to find out how to conduct a thorough Singapore company information search.

How to check if a company is legit in Singapore

Know Your Business (KYB) should be standard practice for any organisation required to comply with Singapore’s AML and CFT regulations. Beyond knowing how to check a business registration number in Singapore, organisations also need to access the following information and documentation:

Registration Information

Key Personnel & Ownerships

Legal Documents

• Name and unique entity number

•Date of incorporation

•Company status and address

•Registered capital, share capital, type and currency

•Former names and changes

•Contact number

•Status and legal forms

•Activities and business scope

•Terms of operation

•Date of last AGM/AR

• Officers

•Directors

•Shareholders

•Share proportion

• Business profile

•Business profile with certificate of production

•Certificate confirming incorporation of company

•Certificate of good standing

•Corporate compliance and financial profile

•Register of business – company documents

Other essential steps in any Singapore business search are identifying and verifying the ultimate beneficial owners (UBOs), and conducting continuous KYB monitoring to keep abreast of changes and emerging risks.

Where to begin your Singapore company information search

The Accounting and Corporate Regulatory Authority (ACRA) is the statutory board that oversees the registration and regulation of business entities and public accountants in Singapore. It ensures compliance with financial reporting requirements, maintains a register of business entities, and provides a framework that promotes transparency and accountability among companies.

Members of the public can conduct a Singapore company information search via ACRA’s online portal, BizFile+. This platform allows users to access details such as company names, registration numbers, business activities, compliance status, and information on directors and shareholders, among other data. Access to some information may require a fee, and users generally need to create an account on the BizFile+ system to conduct searches or access detailed reports.

It can be a time-consuming process to check business registration Singapore manually via an online portal, given all the different pieces of information and documents that are required. This can become particularly laborious when dealing with multiple entities or jurisdictions. Fortunately, business verification technology offers a more efficient solution. Advanced platforms like AsiaVerify can automate this process at speed, connecting directly to databases like ACRA’s to retrieve and verify information in real-time. This speeds up the KYB process and enhances accuracy by minimising the human error that can occur with manual data entry and analysis.

Understanding ownership

In addition to conducting a Singapore company information search, organisations must also identify and verify each entity’s beneficial owner – the individual or legal entity that has more than 25% interest in or control over a company.

It’s important to recognise that there may be multiple beneficial owners for a single entity. Additionally, if no single owner holds more than 25% of the shares, organisations should then focus on individuals in key management or executive roles, particularly those possessing at least 10% of the shares.

Tracing ownership chains can be complex, especially when obscured by layers of corporate structures. Organisations must ensure they have the tools to pierce through these layers and accurately identify the true controllers of the entities with which they conduct business. Failing to do so can lead to serious consequences.

For instance, last year, the Monetary Authority of Singapore (MAS) imposed fines totalling S$3.8 million ($2.83 million) on Citibank, DBS, OCBC and Swiss Life for their non-compliance with AML/CTF standards. These penalties resulted from investigations linking these financial entities to the illicit activities of the now-defunct payments firm, Wirecard^[3].

Key violations included:

Citibank’s inadequate understanding of the control structures of two corporate customers and failure to correctly identify the beneficial owners, despite discrepancies in the information provided.
DBS’s failure to maintain up-to-date information on beneficial ownership, and verify the source of wealth for high-risk customers and their beneficial owners, among other breaches.
OCBC’s neglect to examine a customer’s ownership and control structure when the declared beneficial owner was not listed in the corporate registration documents.
Swiss Life’s lack of understanding of the complex ownership and control structure of a higher-risk customer.

How AsiaVerify can help

Designed specifically for the Asia-Pacific region, AsiaVerify makes it effortless to conduct a thorough Singapore company information search and more, automating every step from identification and verification through to continuous KYB monitoring. Our technology provides real-time intelligence on businesses, customers and beneficial owners in Singapore – simplifying and expediting KYB, KYC and UBO processes.

AsiaVerify is enhanced with advanced machine learning and AI, enabling real-time searches that save time and expand the scope for detecting irregularities and eliminating blind spots effectively. When conducting UBO searches for example, the system helps to unravel complex ownership structures and business relationships, so clients can identify all beneficial owners with a minimum holding of 10%.

With direct connections to government registries and other official sources within Singapore, AsiaVerify guarantees that all risk-based decisions are made using the most accurate, current information available. Clients gain immediate access to millions of primary source documents, fully translated and available in real-time.