On 6 May 2026, Singapore’s Corporate and Accounting Laws (Amendment) Act 2025 commenced in its first substantive phase. If you are a director of a Singapore company — whether executive, non-executive, or nominee — these changes took effect immediately and carry material personal liability consequences.

This article breaks down exactly what commenced on 6 May 2026, what it means for you personally, and the practical steps you need to take now.

What Is the Corporate and Accounting Laws (Amendment) Act 2025?

Parliament passed the Corporate and Accounting Laws (Amendment) Act 2025 (“the Act”) in October 2025 as part of a broader effort to sharpen director accountability, strengthen Singapore’s anti-money laundering (AML) framework, and improve audit quality. The Act amends the Companies Act 1967, the Accountants Act 2004, and several related statutes.

ACRA published the commencement notice in April 2026, confirming that selected provisions would take effect on 6 May 2026. A second phase of provisions is expected to commence at a later date. Our earlier article on the key changes in the Act provides a useful background overview.

What Changed on 6 May 2026

1. Director Fines Increased from S$5,000 to S$20,000

The most immediate change affects the financial penalties for directors who breach their duties under the Companies Act. Maximum fines for breaches of core directorial obligations — including the duty to act with reasonable diligence under Section 157 — have been increased fourfold:

  • Before 6 May 2026: Maximum fine of S$5,000
  • From 6 May 2026: Maximum fine of S$20,000, plus the possibility of up to 12 months’ imprisonment for serious breaches

This applies to breaches of a director’s duty to act honestly and use reasonable diligence in the discharge of his or her duties. The enhanced penalties apply to offences committed on or after 6 May 2026.

What this means in practice: Directors can no longer treat compliance lapses as minor administrative inconveniences easily resolved with a nominal fine. The new penalty regime places personal accountability for governance failures squarely at the forefront.

2. AML Conviction Now Automatically Disqualifies Directors

A significant addition to Singapore’s director disqualification regime: from 6 May 2026, a conviction for a money laundering offence under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 (“CDSA”) automatically disqualifies an individual from acting as a director or taking part in the management of a company.

Previously, the disqualification list was centred on fraud, insolvency, and offences involving dishonesty. Adding CDSA convictions reflects MAS and ACRA’s continued focus on financial crime risk at the boardroom level. Singapore’s ACRA legislation page details the full scope of these amendments.

Directors arranging for nominee directors — and the nominee directors themselves — should take particular note. Our guide to nominee director requirements in Singapore explains the relevant obligations, which now interact with a broader disqualification regime.

3. Audit Reports Must Now Identify the Engagement Partner by Name

With effect from 6 May 2026, every statutory audit report of a Singapore company must identify, by name, the public accountant primarily responsible for the audit engagement. Previously, audit reports were signed in the name of the accounting firm only.

This change promotes personal accountability for audit quality and aligns Singapore with international practice in jurisdictions such as the United Kingdom and Australia. For boards, this means you should now see the name of the individual partner responsible for your audit — and you are entitled to ask who that person is. We cover this in detail in our companion article on the new engagement-partner naming rule.

What Remains Pending

Not all provisions of the Act commenced on 6 May 2026. ACRA has indicated that additional provisions will take effect in subsequent phases. Directors should continue to monitor ACRA’s news and announcements page for updates on further commencement notices.

Implications for Nominee and Non-Executive Directors

One of the clearest messages from the 6 May 2026 commencement is that passive directorship is no longer a defensible governance posture. With individual fines now at S$20,000 and imprisonment on the table for serious breaches, any director who holds a position without genuinely engaging in the company’s affairs faces substantially elevated personal risk. This applies equally to:

  • Nominee directors appointed by a corporate service provider at a client’s request
  • Non-executive directors who sit on boards without actively reviewing governance matters
  • Foreign directors of Singapore subsidiaries who leave day-to-day governance entirely to local managers

If you are a foreign business owner using a nominee director to satisfy ACRA’s residency requirement, this is the moment to review your governance arrangements. Your nominee director has statutory duties under the Companies Act — and the cost of breaching those duties has increased materially.

Practical Steps for Directors

Review Your D&O Insurance

With maximum fines at S$20,000 and imprisonment risk for serious breaches, review your Directors and Officers (D&O) liability insurance policy. Confirm that the policy covers regulatory penalties, legal defence costs in connection with ACRA investigations, and AML-related proceedings.

Audit Your AML Exposure

The CDSA conviction disqualification is automatic. Directors of companies that deal with high-risk clients, cash-intensive sectors, or complex cross-border structures should conduct an AML risk review now. If you are uncertain about your company’s AML posture, speak to your corporate service provider or legal counsel.

Update Director Onboarding Documentation

If your company appoints new directors — or if your corporate secretary maintains standard onboarding documentation — update those packs to reflect the new penalty regime and expanded disqualification grounds. Your board minutes should acknowledge awareness of current obligations. See our guide to directors’ resolutions in Singapore for practical guidance.

Confirm Your Audit Engagement Partner

From 6 May 2026, ask your auditor to confirm who the named engagement partner will be on your next statutory audit report. This is now a statutory requirement. For companies approaching their financial year-end, the next audit cycle will produce reports under the new format.

Stay on Top of Filing Deadlines

The new penalty regime applies alongside existing ACRA filing obligations. Review our Singapore Company Compliance Calendar 2026 to ensure your company’s annual return, financial statements, and other ACRA filings remain on track.

Key Takeaways

The 6 May 2026 commencement of the Corporate and Accounting Laws (Amendment) Act 2025 is in effect today. Directors of Singapore companies now face:

  • S$20,000 maximum fines for breaches of core directorial duties (up from S$5,000)
  • Up to 12 months’ imprisonment for serious breaches
  • Automatic disqualification upon conviction under the CDSA for money laundering offences
  • Named engagement partner requirement on all statutory audit reports

Singapore’s corporate governance framework is tightening, and the personal cost of non-compliance has never been higher. If you need assistance reviewing your governance arrangements, updating director documentation, or assessing your company’s compliance posture following the Act’s commencement, the team at Raffles Corporate Services is ready to assist.

— The Editorial Team, Raffles Corporate Services