📌 Singapore Issues First CRS Fines. A Wake Up For Banks

Singapore’s Inland Revenue Authority (IRAS) has issued its first formal penalties for non-compliance under the Common Reporting Standard (CRS), signalling a firmer regulatory stance on automatic exchange of information.

This marks a significant moment for one of Asia’s most prominent financial hubs, and a timely warning to institutions operating under CRS obligations globally.

In late April 2025, IRAS announced administrative penalties against several financial institutions for:

• Incomplete or inaccurate account holder data,
• Failure to conduct proper self-certification procedures,
• Delays in CRS return submissions, and
• Inadequate controls to detect and prevent reporting errors.

While IRAS did not name the institutions involved, it confirmed that penalties ranged from SGD $5,000 to $50,000, depending on the severity and recurrence of the breach.

Until now, Singapore’s AEOI regime has emphasised education and voluntary remediation. The shift to enforcement reflects:

• Increased maturity in the CRS framework,
• Pressure from global tax authorities (especially OECD partners), and
• A growing expectation for robust, audit-ready compliance systems.

This aligns with a wider global trend: CRS is no longer about filing reports — it’s about embedding permanent controls.

Whether based in Singapore or elsewhere, financial institutions should take this opportunity to:

• Revisit entity classification and onboarding procedures, ensuring all self-certifications are complete and correctly recorded;
• Perform a data accuracy review across previously reported accounts;
• Validate governance and escalation protocols around non-compliant or undocumented accounts;
• Engage a third-party advisor to conduct a health check before your next CRS deadline.

This enforcement action won’t remain isolated to Singapore. As global AEOI systems mature, tax authorities in the UK, EU, UAE, and Hong Kong are expected to follow suit.

Now is the time for firms to proactively strengthen their CRS controls — not wait for a notice from the regulator.

Need to test your CRS readiness or resolve reporting risks before your next submission?

Contact our AEOI team today for a practical health check.