Between October 2020 and March 2021, Leftright Corporate Pte. Ltd.’s then Director, Han Jie, had been involved in an incident relevant to Section 157(1) of the Companies Act (Chapter 50, 2006 Revised Edition), for failing to exercise reasonable diligence.
As appointed Nominee Director and under the former client’s instruction, Han Jie had overlook on certain KYC procedures which had resulted in this incident.
There were no criminal proceedings and we write this article to address and provide clarity on matters relating this case as it involves the Company’s key personnel.
We aim to provide insights into our commitment to client protection, the measures we have implemented, and how we strive to create a secure and trustworthy business environment.
Balancing Client Needs and Compliance
Learning from such incidents and allows us to proactive steps to enhance our onboarding Know-Your-Client (“KYC”) measures. We recognize the significance of upholding rigorous KYC standards and likewise have to take steps to prevent any potential misuse of our services.
In this particular instance, we were guided by the instructions of the former client, which led to unintended lapses in our KYC procedures. Such lapses have since been identified, and our team has taken the corrective actions to ensuring that this does not happen again.
Enhanced Measures for Improved Compliance
Leftright Corporate had conducted a comprehensive review of our existing KYC processes and introduced additional measures to address any potential vulnerabilities. These measures include enhancing our verification procedures, investing in technology solutions, and providing comprehensive, recurring training to our staff members.
The incident has reinforced our commitment to maintaining the highest standards of due diligence and client protection. We remain dedicated to the industry best practices thereby ensuring the highest level of compliance and security for our clients.
Preventing Misuse of our Services
As Corporate Service Providers (CSP), we are the gateway for both foreign and local individuals looking to establish businesses. We also hold a vital role in preventing the establishment of illegitimate businesses. With this responsibility, we have to exercising due diligence and vigilance in order to ensure the integrity of Singapore’s business landscape.
We continue to stay up-to-date with evolving regulations to enable us to implement effective controls and procedures involving screening measures, as well as collaboration with the authorities.
This assures the businesses of legitimate entrepreneurs can thrive, ensuring the long-term success and reputation of both our clients and ourselves.
Our Selective Client Evaluation Procedure
We place a strong emphasis on maintaining integrity, transparency, and accountability in all aspects of our operations. In order to do so, we regret that there may be circumstances where we need to decline offering our services to some clients. The relevant services this affect is mainly those involving the use of our Nominee Director services.
These decisions are made with careful consideration to ensure the security and compliance of our company. In addition, our KYC procedures may occasionally result in longer processing times.
We’d also like to thank our clients for their continued support and their understanding as we uphold our commitment to these values.