The Corporate Service Providers (CSP) Act 2024 – Update For Berru.co Clients

On 2 July 2024, the Accounting and Corporate Regulatory Authority (ACRA) introduced the Corporate Service Providers (CSP) Act 2024 in an effort to bolster Singapore’s financial integrity and align with evolving international standards. Coming into effect on 9 June 2025, the Act brings significant regulatory reforms to the corporate services landscape—affecting how service providers operate and how businesses should engage with them.

If you rely on corporate service providers to manage aspects of your business in Singapore, here’s what you need to know.

A Corporate Service Provider (CSP) in Singapore plays a vital role in supporting businesses through their corporate journey, from the initial setup to its maintenance as well as ensuring compliance with local regulations. Whether assisting a local entrepreneur or a foreign investor entering the market, CSPs serve as trusted partners—streamlining administrative processes, ensuring compliance with local laws, and enabling businesses to focus on their core operations.

Licensed and regulated by the Accounting and Corporate Regulatory Authority (ACRA), CSPs offer a broad range of professional services that include company incorporation, corporate secretarial support, provision of nominee directors, registered office addresses, as well as accounting, tax, and regulatory compliance services.

If you are running a business out of Singapore, chances are that you are already interfacing with a CSP firm.

The CSP Act 2024 establishes a more inclusive and robust regulatory framework to address risks of abuse within the industry, particularly concerning money laundering and the financing of terrorism. 

Previously, only CSPs that submitted filings to ACRA were subject to regulatory oversight. However, the new Act extends its reach to all entities offering corporate services, regardless of filing responsibilities.

1. Comprehensive Registration Requirements

All businesses providing corporate services, must now register with ACRA, even if they do not file on clients’ behalf. This includes: 

• Company incorporation
• Secretarial support
• Nominee director services
• Registered office provision
• Provision of accounting services

This closes a previous regulatory gap and strengthens sector-wide accountability.

2. Nominee Director Regulations

Only registered CSPs are permitted to arrange for individuals to act as nominee directors. Before appointment, CSPs must conduct fit and proper assessments to ensure the nominee directors meet regulatory standards. This provision enhances accountability and compliance, with significant penalties for breaches.

3. Disclosure of Nominee Status

The Act requires companies and foreign companies to file information about nominee directors and shareholders with ACRA. The nominee status will be made publicly available, enhancing transparency across the corporate landscape.

4. AML/CFT Compliance Obligations

Registered CSPs are now subject to enhanced obligations under Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) frameworks. These obligations include maintaining client due diligence protocols, conducting risk assessments, and filing suspicious transaction reports, where necessary.

5. Ongoing Monitoring and Audits

ACRA will have the authority to conduct inspections and audits on registered CSPs to verify compliance with the Act. Service providers must maintain comprehensive records and demonstrate that internal controls are in place.

6. Stricter Enforcement and Penalties

The Act introduces stronger enforcement mechanisms. Non-compliance, including failure to register or breaches of AML/CFT requirements, may lead to hefty penalties—up to S$100,000, suspension, or revocation of registration.

With the CSP Act’s expanded scope and enforcement teeth, businesses are now expected to exercise heightened due diligence when engaging CSPs—both in Singapore and across borders.

Using a non-registered or non-compliant provider poses serious risks, including:

• Legal liability for regulatory breaches
• Exposure to fraudulent or unlicensed activity
• Risk of non-compliant filings or governance failures
• Damage to business reputation and stakeholder trust

To mitigate these risks, Berru.co strongly advises all clients to verify a provider’s registration status with ACRA through the official Register of Registrable Controllers.

Node Asia Services Pte. Ltd. (“Berru.co”) is already a registered CSP with ACRA. As part of our standard operating procedures we already exercise:

• Regular staff training on compliance and regulatory updates
• Strengthened onboarding and client risk assessment procedures
• Fit and proper checks on our Nominee Directors

On top of these we will be adding the following to our services

• For clients that have engaged Berru.co for Nominee Director services
  • Ongoing transaction monitoring will be a requirement to comply with the CSP act. This includes the timely collection and maintenance of documents
• For clients that have already engaged us for quarterly or monthly preparation of management accounts no additional changes will be required.

As Singapore tightens its regulatory ecosystem for corporate services, businesses must align with providers that are proactive, compliant, and future-ready. At Berru.co, we’re not just meeting these new standards—we’re helping you navigate them with confidence.

Disclaimer: The information contained in this article is provided for general informational and educational purposes only and does not constitute legal, regulatory, tax, financial, or professional advice. While Berru.co endeavours to ensure that the information presented is accurate and up to date at the time of publication, laws and regulations — including those applicable in Singapore — may change and may vary depending on jurisdiction and individual circumstances.

Readers should conduct their own independent due diligence and seek appropriate professional advice from qualified advisers before making any business, legal, or financial decisions.