Singapore is recognized as an important financial center, providing a strong banking and financial system to support international wealth management. It is one of the best offshore financial centers in the world, with a sound and stable banking system, as well as complete financial and commercial regulations. All the major international banks are based in Singapore. Attract many multinational enterprises to open overseas (offshore) company accounts in Singapore for financial / capital scheduling operations. Prior to opening a corporate bank account, the bank must conduct a customer due diligence (customer due diligence, CDD) on the company to ensure that the company is not involved in criminal activities and that the corporate bank account is not used for money laundering. CDD usually include the following:

1. Meet with customers;

2. Assess clients; and

3. Confirm the legal holders and the ultimate beneficiaries of the Company.

The purpose of CDD is to comply with the regulations and regulations on anti-money laundering and anti-money laundering (AML) and anti-financed terrorism (CFT), which include:

1. Corruption, Drug trafficking and Other Serious Crimes (Forfeiture Interest) Act of 1992 (CDSA);

2. The 2002 (Stop Funding) Terrorism Law;

3. Serious Crimes and Terrorism (Miscellaneous Amendment) Act 2018; and

4. Notices, guidelines and other guidance on AML and CFT issued by the Monetary Authority of Singapore (MAS), the regulatory body of financial institutions in Singapore.

This article outlines the steps involved in opening a corporate bank account in Singapore, explains the information a company must provide to the bank when applying for an account, and why it is needed. It also identified who is responsible for filing the application and the bank's customer due diligence requirements to confirm the ultimate beneficiary.

1. Approved the opening of bank accounts in the name of the company;

2. Authorize the Director or representative of the Company to complete any form or power of attorney in the name of the Company; and

3. Appoint an authorized signatory for the bank account.

The opening of a bank account can be completed within about one to three weeks after the establishment of the company. As practice, the paid-up capital after the establishment of the Company may:

1. Held by shareholders (especially if the paid-up capital is only a nominal amount). A shareholder may sign a statement indicating that paid-up capital will be deposited into the corporate account after the bank account is opened; or

2. It is held by the trust account (especially in the large amount of paid-up capital) and undertakes that the paid-up capital will be transferred to the company account upon the opening of the company bank account.

Banks in Singapore usually have a standard resolution requiring the company applying to open the account. Resolutions need to be signed or certified by the company's directors, depending on the bank's requirements.

The Company Directors shall note that, as part of customer due diligence, the Bank is obliged to:

1. Identify and validate the customers;

2. Identifirm the ultimate beneficiary of the company;

3. Continuously monitor customer activities.

Certain key documents used to verify the identity of the Company, the Company Director, the Company Secretary, and the ultimate beneficiary of the Company must be submitted along with the application form.

The guidelines issued by MAS provide detailed requirements for banks to conduct customer due diligence and specify the different levels of customer due diligence that banks need to perform based on the bank's risk assessment for the company:

Customer due diligence (simplified version): applicable to low-risk clients, such as MAS regulated clients (e. g., licensed banks, financial advisers or insurance brokers, capital markets services licence holders or registered fund management company) or government entities.

Customer due diligence (enhanced version): applicable to high-risk customers, such as the bank determines that any ultimate beneficiary of a customer is a political person (PEP), or a family member or close relationship of a political person. Other high-risk categories include the client or any ultimate beneficiary from a country or jurisdiction where the Money Laundering Financial Action Task Force (FATF, GMOF) requests the countermeasures, or where the bank considers its AML / CFT measures are inadequate, or the bank is unable to determine whether the client's corporate structure has any economic or commercial purpose or has any substantial financial activity.

Customer due diligence (basic version): applicable to customers who do not qualify for the simplified customer due diligence and do not require the enhanced customer due diligence.

Generally, the following documents must be provided in the customer due diligence session:

1. Singapore certificate of company registration

In this regard, the documents that the Company needs to prepare and submit to the Bank include:

(1) A resolution adopted by the Board approving the opening of a company account and the signatory of the account (usually in the standard format provided by the bank) and which must usually be certified by the director of the company;

(2) The completed application form for company account opening (signed by the directors of the company or the signatories authorized by the resolution of the board of directors);

(3) A certified authentic copy of the Company's business profile (a standard electronic profile of the Company maintained by the Accounting and Enterprise Regulatory Authority of Singapore (ACRA), including basic details of the Company, such as registered address, amount of share capital, names of directors and shareholders);

(4) The electronic register of shareholders and the register of directors drawn from the ACRA, usually confirmed by the directors of the company; and

(5) Certified true copies of the charter are usually confirmed by the directors of the company.

2. identification paper

A authentic copy of the passport or notarized copy of the shareholders, the ultimate beneficiaries and the directors of the company or other identification documents required by the bank.

3. Certificate of residential address

The latest tax returns, invoices and other documents required by the shareholders, ultimate beneficiaries and directors of the company to prove their place of residence.

4. Background of the shareholders and of the ultimate beneficiaries

Educational background or certificates, employment letters and personal introduction of the shareholders and ultimate beneficiaries of the Company.

1. It plans to carry out business;

2. To the other party (including any customer or supplier);

3. Funding of its capital and operations.

Depending on the result of the meeting, the bank may further ask the company to submit other documents.