Notice: Singapore’s Banking System Tightens Regulations on Account Opening!
Notice: Singapore’s Banking System Tightens Regulations on Account Opening!
Jul 02, 2024
In August last year, a money laundering case involving SGD 3 billion rocked Singapore’s financial sector. The suspects, all Chinese nationals, severely impacted Singapore’s financial order. This incident prompted Singaporean banks to re-evaluate their account opening policies, resulting in stricter review processes and increased difficulty in opening accounts. These changes have affected global investors’ perceptions of Singapore, but the Singapore government continues to support banks in enhancing supervision to maintain the stability and healthy development of the financial market.
Zaobao Report
Due to last year’s money laundering case, Singaporean banks have intensified the review process for opening accounts for foreign-registered companies, extending the time required and increasing documentation demands, especially for companies owned by Chinese nationals. This has impacted Singapore’s attractiveness as a global financial hub. Experts urge Singapore to find a balance between risk control and business development to avoid making account opening difficulties a norm.
Account Opening Challenges
The main difficulties faced by Chinese-registered companies in opening accounts in Singapore are as follows:
Account Opening Time
Opening an account for a Hong Kong company typically takes 1-2 months, whereas in Singapore it now often takes 2-3 months to half a year, and some companies wait up to a year. The initial review of documents alone can take a month due to banks’ cautious considerations. Before the pandemic, opening an account in Singapore took about a month.
Account Opening Requirements
Singapore’s account opening conditions are stringent, including requirements for an Employment Pass (EP) and office lease. This is costly for companies that only want to receive and make payments without new shareholders. It is suggested that Singapore improve the convenience of its financial services.
Complex Documentation
Singaporean banks’ business reviews are rigorous, requiring a large number of compliance documents and business proofs such as contracts, bank statements, and customs declarations. Frequent requests for additional information confuse customers, raising questions about whether banks truly need these materials or intend to deter clients.
SIG is Here to Help
Since 2009, SIG has been providing accounting, tax, and wealth management services in Singapore. As a quality service provider, its international team served over 400 global enterprises with company registration and related services during the pandemic. SIG offers comprehensive one-stop services, including corporate secretarial services, nominee directors, registered addresses, and bank account opening, with no stringent conditions and a focus on professional qualifications.
For more information on opening a Singapore company account, feel free to consult SIG Tax&Accounting!