Singapore: tougher director penalties and new money-laundering disqualification from 6 May 2026
The first phase of Singapore's Corporate and Accounting Laws (Amendment) Act 2025 started on 6 May 2026. Maximum fines for directors who breach their duties rose from S$5,000 to S$20,000, with up to 12 months' imprisonment for serious cases, and people convicted of money laundering are disqualified from being directors. Selective share buy-backs need a second 75% class approval, and Form 45 has new declarations.
ACRA announced on 16 April 2026 that the Corporate and Accounting Laws (Amendment) Act 2025 would commence in phases, with the first provisions in force on 6 May 2026.
What changed on 6 May 2026
- Directors' duties: maximum fines for breaching duties, such as not acting in the company's best interests or without reasonable diligence, rose from S$5,000 to S$20,000. Serious offences can bring both a fine and up to 12 months' imprisonment.
- Disqualification: anyone convicted of money laundering under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 is disqualified from acting as a director, and the list of disqualifying offences was widened.
- Audit reports must name the public accountant primarily responsible for the audit.
- Selective share buy-backs: besides the existing 75% approval of all shareholders (excluding sellers), a separate 75% approval is needed from holders of the class being bought back (excluding sellers).
Form 45 (director consent)
From 6 May 2026, Form 45 includes a statement that the proposed director has no money laundering conviction and a declaration that they understand their obligations and will use the company only for legitimate purposes. Companies must use the new form for every new appointment and keep it with the statutory records.
What to do
Use the updated Form 45 for all new directors. Review buy-back procedures and brief directors on the higher penalties.
Later developments
The second phase starts on 20 October 2026. See our coverage.