In August 2023, Singapore successfully uncovered a major money laundering case involving an amount as high as SGD 3 billion. This incident quickly drew widespread public attention to money laundering issues. The case caused a significant disruption to Singapore’s financial order, prompting the Singapore government to further strengthen its anti-money laundering regulatory measures.

 

(Source: Internet)

 

As a result, it has become increasingly challenging for companies to apply for bank accounts in Singapore. To ensure the safety and stability of the financial system, banks conduct stringent reviews of companies before account opening, verifying the legitimacy of their business and ensuring compliance with anti-money laundering regulations to prevent the flow of illegal funds. Against this backdrop, companies applying for bank accounts in Singapore need to prepare comprehensive and compliant documentation and undergo thorough bank reviews. Below, we will provide a detailed analysis of how companies can successfully open bank accounts in Singapore.

 

Advantages of Opening a Bank Account in Singapore

    1. Freedom in International Trade Settlement: Opening a Singapore bank account allows companies to freely settle international trade payments, greatly enhancing the convenience and efficiency of transactions.
    2. Free Fund Transfers and Currency Exchange: Singapore’s independent financial market system operates without foreign exchange controls, enabling free fund transfers. Companies can also freely exchange various currencies through their Singapore bank accounts, meeting diverse business needs.
    3. Ease of Daily Operations: Singapore bank accounts are easy to operate, and companies can utilize online banking for transactions, enabling account management anytime, anywhere, thereby improving work efficiency.
    4. Convenience in Trade Financing: Opening a Singapore bank account facilitates trade financing with international banks, providing strong financial support for the rapid growth of enterprises.

 

Conditions for Opening a Bank Account in Singapore

    1. Company Registration Requirement: To apply for a Singapore bank account in the name of a company, the company must first be registered. This can be a local Singapore company or an overseas company from regions like Hong Kong, the British Virgin Islands (BVI), or the Cayman Islands.
    2. Industry Restrictions: Companies applying to open bank accounts in Singapore must not operate in high-risk industries, nor can their products or services involve high-risk activities. Otherwise, they will fail to pass the bank’s review.
    3. Complete Company Documentation: Singapore banks require companies to provide complete registration documents, including a Certificate of Incorporation, Constitution, and Business Registration Certificate. For overseas companies, additional proof of registration and actual operations may be required. The completeness and authenticity of company documents are critical for opening a bank account in Singapore.

 

Choosing the Right Bank in Singapore

The top choices are the three major local banks in Singapore: OCBC Bank, UOB Bank, and DBS Bank. These banks offer more comprehensive services and advantages, including convenient account usage and easier access to additional financial services like discounts, loans, and trade financing.

 

Preparing Documentation for Account Opening

Opening a bank account in Singapore requires a range of necessary documents, categorized into individual shareholder company documents and corporate shareholder company documents. The main materials include:

Individual Shareholder Company Documents:

    1. Three Singapore company registration documents (Bizfile, Constitution, Certificate of Incorporation).
    2. Scanned copies of ID cards, passports, and address proof of all directors, ultimate beneficiaries, and shareholders.
    3. Contracts and invoices from overseas suppliers, or intent contracts, preferably from the last six months.
    4. Contracts and invoices from overseas clients, or intent contracts.
    5. Bank KYC forms.

Corporate Shareholder Company Documents:

    1. Three Singapore company registration documents (Bizfile, Constitution, Certificate of Incorporation).
    2. A signed Singapore company shareholding structure chart.
    3. Signed proof of existence, shareholder register, business license, and articles of association of the domestic parent company and other entities holding more than 20% shares.
    4. Scanned copies of ID cards, passports, and address proof of all directors, ultimate beneficiaries, and shareholders.
    5. Contracts and invoices from overseas suppliers, or intent contracts, preferably from the last six months.
    6. Contracts and invoices from overseas clients, or intent contracts.
    7. Bank KYC forms.

Proper planning and organization of these materials in advance are crucial to ensuring a one-time submission of complete and accurate documentation during the application process.

 

Timeline for Opening a Singapore Bank Account

Following the exposure of Singapore’s largest money laundering case, the country’s banks have significantly tightened account opening reviews, extending the waiting time for startups. The incident prompted Singapore banks to reassess their account opening policies, leading to the implementation of stricter review processes and making account opening more challenging. Currently, opening a corporate account in Singapore takes approximately 1 to 2 months, with a relatively high level of difficulty.

Our Advantages

    1. Thorough Preparations and Efficient KYC: We excel in pre-document collection and client communication, ensuring a comprehensive and accurate KYC process. Through meticulous communication, we fully understand the client’s business needs and background, enabling the collection of complete and authentic information. This not only increases the success rate of account opening but also effectively reduces potential future risks.
    2. Deep Collaboration with Banks, High Trust Level: We have established long-term and close partnerships with banks. Through multiple successful collaborations, a strong foundation of trust has been built. This trust is evident not only in daily business interactions but also in banks’ recognition of our professional capabilities and compliance standards. This high level of cooperation significantly improves the efficiency and success rate of account opening applications.

*SIG x Bank Collaboration Highlights: We maintain long-term business partnerships with multiple local and international commercial banks in Singapore, including Oversea-Chinese Banking Corporation (OCBC), United Overseas Bank (UOB), Standard Chartered Bank and digital banks like ANEXT. These relationships meet the comprehensive financial needs of enterprises expanding overseas and developing further.

Opening a bank account in Singapore is a critical step for companies to conduct business successfully. By understanding the advantages, requirements, bank selection, and documentation preparation for opening a Singapore bank account, companies can navigate the process more smoothly, laying a solid foundation for international development. If you have any questions about opening a Singapore bank account or need further assistance, please feel free to contact us. We are committed to serving you!