# Singapore CSP Regulation Update: Mandatory Video Verification and Enhanced Cross-Border Compliance > **Executive Summary**\ > Starting from **June 2025**, Singapore has significantly upgraded its **Corporate Service Provider (CSP)** regulatory framework.\ > **Mandatory video identity verification (Video KYC)** is now required, marking a clear shift toward stricter transparency and global compliance standards. *** ### 1. What Is a CSP? A **Corporate Service Provider (CSP)** is an entity authorized to provide corporate and administrative services, including: * Company incorporation and dissolution * Director, shareholder, and beneficial owner registration * Corporate secretarial and annual filing services * Shareholding and structural changes Singapore CSPs have long played a key role in cross-border business structures, e-commerce, and international holding arrangements. *** ### 2. Key Regulatory Changes (Critical) Effective **9 June 2025**, Singapore has enforced a new CSP regulatory regime with the following core changes: #### ✅ Mandatory Video Identity Verification (Video KYC) * All **directors, shareholders, and ultimate beneficial owners (UBOs)** * Must complete **real-time video identity verification** * Document-only or fully remote registrations are no longer sufficient #### ✅ Enhanced Beneficial Ownership Transparency * Clear identification and disclosure of UBOs * Strict scrutiny of nominee arrangements and indirect control structures #### ✅ Increased CSP Accountability * CSPs are now directly responsible for identity verification accuracy * Verification records must be complete, auditable, and traceable *** ### 3. Regulatory Intent Behind the Policy #### 1️⃣ Crackdown on Shell Companies and Hidden Ownership The traditional model relying on: * Nominee directors * Opaque ownership layers * Low-cost, fast incorporations is being systematically dismantled. #### 2️⃣ Alignment with Global AML Standards * Convergence with **FATF (Financial Action Task Force)** requirements * Reinforcement of **CRS (Common Reporting Standard)** and international tax transparency #### 3️⃣ Protection of Singapore’s Financial Reputation * Reduced risk of money laundering and regulatory arbitrage * Strengthening Singapore’s position as a trusted global financial hub *** ### 4. Practical Impact on Businesses and Clients #### ❗ Higher Incorporation and Maintenance Costs * Longer onboarding timelines * More rigorous due diligence * Increased compliance documentation #### ❗ Elimination of Non-Compliant Intermediaries * Unlicensed CSPs * “No-show” or “guaranteed approval” incorporation services will largely disappear. #### ✅ Long-Term Benefits for Compliant Businesses * Higher success rates in bank account opening * Improved payment and settlement access * Lower long-term regulatory risk *** ### 5. Practical Recommendations #### ✅ 1. Prepare for Video KYC in Advance * Valid passport or government-issued ID * Stable internet and proper video environment * Clear explanation of business activities #### ✅ 2. Simplify and Clarify Ownership Structures * Avoid unnecessary complexity * Ensure UBO information is consistent and defensible #### ✅ 3. Work Only with Licensed CSPs * Verify **ACRA licensing status** * Assess cross-border compliance experience * Ensure proper record-keeping and audit readiness #### ✅ 4. Reassess the Value of Shell Structures * Companies without genuine operations should carefully reconsider * Future compliance costs may outweigh short-term convenience *** ### 6. Conclusion Singapore’s CSP regulatory upgrade sends a clear signal: > **The era of low-transparency cross-border structures is ending.**\ > **Compliance, substance, and auditability are now the baseline.** While short-term costs may increase,\ this shift ultimately benefits businesses committed to long-term, compliant global operations. End. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.nextcli.com/news/singapore-csp-regulation-update-mandatory-video-verification-and-enhanced-cross-border-compliance.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.