Accountant Policy

1.1 Accountant Policy Introduction

Single Point Contact (“SPC”) is a one stop accounting, tax and payroll solutions for businesses. We specialize in SMEs, startups, professional services and many more. First Accounting start-up in Asia.

SPC provides a platform to connect clients and the accountants. In no event SPC will be liable for any losses and damages resulted from the action of the accountants or the clients. The accountants shall not hold themselves out as an agent, employee or staff of SPC and the services provided by the accountants shall not be deemed to be provided by SPC.

All accountants who serve our clients are required to comply with this policy and go through the training at Cloud Accounting Software. SPC may amend this policy at any time and any such amendments shall be effective once they are posted on https://www.singlepointcontact.com/accountant-policy/. It is the responsibility of the accountants and clients to review this policy regularly to keep themselves abreast of any changes.

Before on-boarding a client, the accountants will conduct the due diligence by getting company profile or certificate of registration from the clients.

It is the responsibilities of the accountants to make any suspicious transaction reports (“STRs”) as recommended via the STRO Online Notices and Reporting Platform (SONAR) in their personal capacity as soon as practicable following the recommended reporting procedures and channel. It is an offence for not reporting a STR.

 

1.1.1 What is Money Laundering (“ML”)?

Money laundering is a process carried out with the intention to conceal the benefits obtained from criminal activity so that they are made to appear to have originated from legitimate sources. In this process, money obtained through criminal activity or other criminal property, for example, money or money’s worth, securities, tangible property and intangible property, are mixed with or exchanged for money originating from legitimate sources or other assets with no obvious link to their criminal origins.

Generally, the process of money laundering comprises three stages:

(a) Placement: the physical disposal of the benefits of criminal activity;

(b) Layering: the separation of these benefits from their source by creating intervening layers of financial transactions; and

(c) Integration: this places the laundered benefits back into the economy so that they re-enter the financial system by appearing to be legitimate business funds.

 

1.1.2 What is the Financing of Terrorism or Terrorism Financing (“TF”)?

Terrorism seeks to influence, compel or intimidate governments or the general public through threats or violence, causing of damage to property or danger to life, creating of serious risks to public health or safety, or disrupting of important public services or infrastructure.

The financing of terrorism involves the funding of such activities. Sources of terrorism financing may be legitimate or illegitimate. For example, they may be derived from criminal activities. They may also be derived from legitimate sources such as income from legitimate business operations belonging to terrorist organisations. The methods used by terrorist organisations to obtain, move, or conceal funds for their activities can be similar to those used by criminal organisations to launder their funds.

 

1.1.3 What is FATF?

The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions.  The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.  The FATF is therefore a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.

The FATF has developed a series of Recommendations that are recognised as the international standard for combating of money laundering and the financing of terrorism and proliferation of weapons of mass destruction.

Relevant Singapore Legislation for AML/CFT Legistlation

• Corruption, Drug Trafficking And Other Serious Crimes (Confiscation Of Benefits) Act (CDSA)
• Terrorism (Suppression Of Financing) Act (TSOFA)
• United Nations Act and UN Regulations (UN Act, Regulations)
• ACRA (Filing Agents and Qualified Individuals) Regulations 2015, Companies Act
• (Register of Controllers and Nominee Directors) Regulation 2017 (Acra Act, Regulations)
• Accountants Act (EP 200)
• Legal Profession Act

 

1.1.4 Definitions of Terms Used in Guidelines

Words or expressions contained in this guideline must be interpreted in accordance with ACRA’s guidelines in force from the date at which this guideline is adopted by the company unless specifically defined in this guideline.

 

1.1.5 Reporting and Tipping-Off

Accountants should be aware that reporting is mandatory in cases where a person, who in the course of his or her trade, profession, business or employment has reasonable grounds to suspect that money laundering or terrorist financing has occurred. Please refer to ACRA’s guidelines for the Indicators of Suspicious Transactions.

It is an offence to disclose any information to any person if doing so is likely to prejudice an investigation or proposed investigation under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act or Terrorism (Suppression of Financing) Act. Be mindful of tipping-off offence.

Pursuant to S57 of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act:

(1) Any person who —

(a) knows or has reasonable grounds to suspect that an authorised officer is acting, or is proposing to act, in connection with an investigation which is being, or is about to be, conducted under or for the purposes of this Act or any subsidiary legislation made thereunder; and

(b) discloses to any other person information or any other matter which is likely to prejudice that investigation or proposed investigation, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 or to imprisonment for a term not exceeding 3 years or to both.

(2) Any person who —

(a) knows or has reasonable grounds to suspect that a disclosure has been or is being made to an authorised officer under this Act (referred to in this section as the disclosure); and

(b) discloses to any other person information or any other matter which is likely to prejudice any investigation which might be conducted following the disclosure, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 or to imprisonment for a term not exceeding 3 years or to both.

 

All accountants are reminded to inform SPC immediately, by phone call if required, should there be any suspicious transactions. Any suspicious transactions is regardless of the amount of the transaction.

All accountants can use the “SAFE” approach as indicated below, to enable them to form suspicion or to recognise the signs when ML/TF is taking place.

Screen: Screen the account for suspicious indicators and Recognition Of A Suspicious Activity Indicator Or Indicators
Ask: Ask the customer appropriate questions
Find: Find out the customer’s records: Review of Information Already Known When Deciding If The Apparently Suspicious Activity Is To Be Expected.
Evaluate: Evaluate all the above information: Is The Transaction Suspicious?

 

1.1.6 Systems and Controls

Clients who are interested to engage SPC’s services must provide the company profile or certificate of registration to the accountants.

1.2 Application of a Risk-based Approach, and Identification and Assessment of Risks

1.2.1 Accountants are aware of their responsibilities to take reasonable steps to identify and assess its money laundering and financing of terrorism risks and applying a risk-based approach during the course of rendering services to the clients.

1.3 Development of Controls to Mitigate Money Laundering and Financing of Terrorism Risks

1.3.1 In developing controls to mitigate its risks, accountants should perform different extent of customer due diligence measures, and perform different extent of on-going monitoring. Accountants should have controls for the identification and scrutiny of complex or unusually large transactions, unusual patterns of transactions which have no apparent economic or visible lawful purpose and any other activity which accountants regards as particularly likely by its nature to be related to money laundering or the financing of terrorism.

In the course of providing accounting and tax compliance services, accountants should review the accounting documents to ensure that the nature of transactions is in line with the business activities of the company.

Accountants are aware of their responsibilities to look out for any unusual findings, circumstances or situations, requiring the accountant’s attention which include but are not limited to the followings:

• Complex or unusually large transactions or unusual patterns of transactions that have no apparent or visible economic or lawful purpose
• Suspicious transactions involving Political Exposed Persons
• Unrealistic turnover in business’s accounts
• Unusual / uneconomical movement of funds
• Multiple bank accounts opened with various banks for no apparent economic or business reasons
• Frequent large incoming remittances into bank accounts from different individuals and companies, located mainly overseas with no supporting documents
• After receipt of funds in the bank accounts, the funds are usually moved out of Singapore within the next few days without valid reasons. These bank accounts generally have low balances
• Transaction patterns in the bank accounts are often not in line with the company’s principal business
• Any tax evasion/avoidance/structuring cases without apparent business or genuine commercial reason, unusual documentation limitation due to tax evasion/avoidance purposes
• Notable discrepancies in terms of amounts or names of transacting parties especially for large transactions
• Any other suspicious transactions relating to money laundering or terrorism financing

1.4 Monitoring Effectiveness and Enhancement of Controls

1.4.1 Accountants are aware of their responsibilities to consider one or more of the following indicators, or other relevant indicators, in monitoring whether its controls are effective and deciding whether enhancement is needed:

(a) a sudden unaccounted increase in business from an existing customer;

(b) uncharacteristic transactions which are not in keeping with the customer’s known business activities and profile;

(c) unaccounted peaks of activity at particular locations or at particular times; or

(d) unaccountable or untypical types of customer transactions.

 

1.4.2 In monitoring the effectiveness of its controls, accountants should consider whether the controls are able to identify any transactions or activities that are unusual or suspicious to them.

1.5 Performance of Customer Due Diligence Measures

1.5.1 Accountants are aware of their responsibilities to obtain a copy of the business profile or certificate of registration from the clients to understand the business activities of the clients.

1.6 Filing a suspicious transaction report

1.6.1 Accountants are aware of their responsibilities to ensure that they and their staffs and employees are trained through its new staff introduction procedures and annual training, tokeep themselves abreast of the reporting procedures and made aware of the persons to whom they have to report to, in the event that they detect any suspicious activities or transactions concerning money laundering or the financing of terrorism and a suspicious transaction report may have to be filed.

 

1.6.2 The accountants must discuss any suspicious transaction with SPC directly and immediately. The accountants should require the gathering of information and/or documents and reporting the transaction within 24 hours upon notification. All suspicious activities reported will be documented. The report will contain full details of the customers and full statement on the information giving rise to the suspicion.

 

1.6.3 A suspicious transaction report may be made electronically via the STRO Online Notices and Reporting Platform (SONAR). More details on how to file STRs via SONAR are available on CAD’s website: https://www.police.gov.sg/sonar

 

1.6.4 Once a STR has been made on a client, accountant may look into the termination of the client but will need to ensure that the termination does not tip off the client or prejudice any investigation.

1.7 Performance of On-going Monitoring of Business Relationships

1.7.1 Accountants are aware of their responsibilities to conduct periodic and on-going monitoring of a business relationship with a customer.

Periodic reviews of existing records of customers should be carried out especially under certain circumstances of triggering events such as:

(a) when a significant transaction (i.e. in terms of monetary value or where the transaction is unusual or not in line with the accountant’s knowledge of the customer) is to take place;

(b) when a material change occurs in the way the customer’s account is operated;

(c) when customer documentation standards change substantially; or

(d) when accountants are aware that they lacks sufficient information about the customer concerned.

“On-going monitoring” means:

(a) scrutiny of transactions undertaken throughout the course of the relationship (including, where necessary, the source of funds) to ensure that the transactions are consistent with the knowledge of the customer, and its business and risk profile; and

(b) keeping the documents, data or information obtained for the purpose of applying customer due diligence measures up to date.

 

1.7.2 Accountants are aware of their responsibilities to apply a risk-based approach to decide the extent of on-going monitoring, for example, whether a higher or lower frequency of on-going monitoring is required, and the timing of the on-going monitoring.

1.8 Record Keeping

1.8.1 Accountants are aware of their responsibilities to keeping records for the entire duration of its business relationship with a customer, and for at least 5 years, if not permanently electronically, starting from the date that it ends its business relationship with a customer.

 

1.8.2 Accountants has the discretion to keep the records in different formats.

1.9 Screening of Employees and Training

1.9.1 Accountants are aware of their responsibilities to:

(a) implement screening procedures for the hiring of fit and proper persons as their employees;

(b) ensure that their employees are trained on the laws for the prevention of money laundering and the financing of terrorism;

(c) ensure that their employees are trained on prevailing methods of, and trends in, money laundering and the financing of terrorism;

(d) ensure that their employees are trained on its internal policies, procedures and controls for the prevention of money laundering and financing of terrorism, including the roles and responsibilities of accountant’s officers and employees with regard to the implementation of these internal policies, procedures and controls; and

(e) ensure that all records of screening and training are documented. They and their employees constantly receive guidance, trainings and reminders regarding their commitment in carrying out their duties conscientiously and diligently for all the clients while maintaining the highest level of care and compliance on due diligence review aligned with the Financial Action Task Force’s recommendations and with reference to among others the Singapore’s 2013 National Risk Assessment Report, to combat money laundering, terrorism financing and proliferation financing.

1.10 Audit Function, Compliance Management and Internal Communication

Accountants are aware of their responsibilities to:

(a) implement and maintain an audit function that is independent, and able to regularly assess the effectiveness of the internal policies, procedures and controls for the prevention of money laundering and the financing of terrorism.

(b) continually review and update the internal policies, procedures and controls for the prevention of money laundering and financing of terrorism, and has appointed an officer in a management position as the compliance officer in relation to anti-money laundering and countering financing of terrorism.

(c) develop internal communication procedures so that its employees, officers and registered qualified individuals are aware of its internal policies, procedures and controls for the prevention of money laundering and financing of terrorism, and their roles in the prevention of money laundering and the financing of terrorism.

1.11 Representation, Warranties and Undertaking by the Accountants

(a) The accountants shall possess all the appropriate licenses, approvals and permits from the relevant authorities in connection with the provision of the accounting services to the clients via SPC’s platform.

(b) The accountants shall comply with all local laws related to the provision of services to the clients via SPC’s platform and the accountants shall be solely responsible for any and all claims, liabilities, loss and damages caused by the provision of the services to the clients via SPC’s platform.

1.12 Indemnification and Limitation of Liability

1.12.1 By agreeing to use the SPC’s platform, the accountants and the clients agree to indemnify and hold SPC, its affiliates, officers, directors, members, employees and agents harmless from and against any and all claims, costs, damages, losses, liabilities and expenses (including but not limited to legal fees) arising out of or in connection with their use of SPC’s platform, or any violation or breach of this policy, any third-party terms and conditions or any applicable laws and regulation.

 

1.12.2 SPC shall not be liable for any actions, losses, damages, claims, liabilities, costs or expenses by the accountants and/or clients in any way arising out of utilizing the SPC’s platform and/or providing the services via the SPC’s platform. In no event shall SPC, its affiliates, officers, directors, members, employees and agents be liable for consequential, special, direct or indirect, incidental, punitive or exemplary loss, damage, costs or expenses (including but not limited to lost of profits and opportunity costs) relating to the use of the SPC’s platform.

 

1.12.3 To the fullest extent allowed by law, any claims by any party against SPC shall be limited to the aggregate amount of all amounts actually paid by that party in utilizing the SPC’s platform during the period giving rise to such claims.

1.13 Disclaimer of Warranties

1.13.1 SPC makes no representation, warranty or guarantee as to the reliability, quality and suitability of the platform and that the use of the platform will be free of errors and meet the requirements or expectations of the users.

 

1.13.2 SPC makes no representation and warranty of any kind whatsoever, express or implied, in respect of the services provided by the accountants via the platform. The accountants and clients agree to bear all risk arising out of the use of services procured through SPC’s platform and shall have no recourse to SPC in respect of the same.

 

1.13.3 For the avoidance of doubt, SPC’s role in providing the platform to connect the accountants and the clients is solely administrative in nature and SPC does not owe any duty of care of fiduciary duties to the accountants and the clients.