At MDDI-ACRA Press Conference on Responsible Use of NRIC Numbers on 19 December 2024, Ms Indranee Rajah, Minister in the Prime Minister’s Office, Second Minister for Finance and National Development said that it is important for ACRA to provide public access to information on individuals associated with businesses.
The search function on the Bizfile portal covers publicly available information about business entities and their associated individuals. It facilitates and supports legitimate business needs, such as due diligence checks.
Lawyers or accountants representing a client, may need to verify their client’s roles in various business entities, their shareholding, and the statuses of the companies they are involved in.
They cannot solely rely on their client’s assertions, but must conduct thorough background checks as part of their due diligence to evaluate the legitimacy and credibility of their client’s claims, Minister Indranee said.
Or take the instance of a company entering into a major contract with another company. The company may want to do its due diligence before committing by doing some background checks on the identities of the directors of the other company.
Guard against illicit activities
The public availability of the names of owners, directors and key position holders of companies helps to ensure accountability and could deter individuals from engaging in illegal activities, Minister Indranee said.
It is easier to trace those who try to hide behind companies to conduct frauds, scams or other illicit activities as their names are publicly linked to the companies.
“This level of transparency helps to protect the interests of all stakeholders and maintain trust in our business environment,” said Minister Indranee.
Striking the balance between corporate transparency and public concerns
Minister Indranee said the People Search function remains useful and necessary to support legitimate business needs.
But going forward, a revised “People Search” function will be introduced that takes into consideration users’ needs and the public’s concerns.
