CNA Explains: What’s a ‘silent’ director, and how could the role help prevent money laundering?

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What’s the level of the position? &nbsp,

That does n’t imply that being a nominee director means simply writing your name on a piece of paper. &nbsp,

A candidate producer serves as a “real” email place for local officials in the event of inquiries, according to Associate Professor Kelvin Law of Nanyang Technological University (NTU).

It would be a major regulatory challenge to try to reach out to a business whose sole target is a post office box, he said. &nbsp,

A regional director can then be held responsible if a foreign company violates the law.

Local managers are also expected to make sure that businesses adhere to laws like keeping accurate accounting records and filing annual earnings. &nbsp,

According to Assoc Prof Law, who is a graduate from the Nanyang Business School, the role is vital to impressive” a gentle balance between attracting international investments and maintaining robust local regulatory oversight.”

Nominated managers are not meant to be silent, he reiterated. &nbsp,

They shoulder” large” legal obligations and responsibilities related to active managers, and can face fines in cases of gross negligence or involvement in illegal actions. &nbsp,

What could go bad for a candidate producer? &nbsp,

The Singapore Police Force reported to CNA that in many cases, a candidate director accepts a fee in exchange for allowing their name to appear in integration papers and is not actively involved with the business. &nbsp,

Some lose private credentials, for as their Singpass electronic identity, to criminal syndicates, who then use these to include companies and open bank accounts to transact legal proceeds.

In the current situation involving over US$ 1 million in con money, one of the males became, in the course of a month, candidate director for more than 50 companies. A friend, a certified accountant who likewise offered business services, approached him. &nbsp,

The candidate director was subject to a maximum fine of S$ 5, 000 or a prison term of up to a month. He admitted guilt and was found guilty of violating the law and was imprisoned for a week on Tuesday ( July 9 ). &nbsp,

He was not aware of the companies ‘ business hobbies, activities or dealings, and did not manage their bank accounts. &nbsp,