The following taken from the CPF board's site from the "Employer's Handbook"
ENFORCEMENT OF CPF CONTRIBUTIONS
Enforcement
The Board takes a serious view of employers who pay late or do not pay CPF contributions for their employees. Upon detection of late payment or non-payment of contributions, action will be taken to recover any arrears or CPF contributions owing.
Step 1: Employers In Default
The Board’s computerized system detects defaulting employers and lists them out each month for follow-up action by Investigations Officers. A notice is sent by registered post to the employers informing them that legal action will be taken unless CPF contributions, interests and composition amount are paid within the notice period. Employees, whose contributions are not paid, will be informed of the non-payment.
Step 2: Employers who fail to pay before the court hearing
If the employers fail to pay up, they will be taken to court. The court will order them to pay the contributions, interests and a court fine.
Step 3: Conviction
If the employers still do not pay up, a Warrant is issued to seize and sell the employers’ assets. Bankruptcy or winding up proceedings may also be instituted against the employers. However, this will only be done as the last resort.
First-time defaulters, who are convicted of a late payment offence, may be fined $2,500 for each offence. Repeated offenders may be fined $10,000 for each offence.
The director, manager, secretary or other officer in charge of paying the CPF contributions, as well as the corporate body found guilty of a late payment offence may be fined $2,500 for each offence. Repeated offenders may be fined $10,000 for each offence.
Employers, who have recovered the employee’s share of contributions and failed to pay the contributions to the Board, may be fined $10,000 or jailed 7 years, or both.
Industry Surveys
The Board conducts spot checks on various industries to determine the level of compliance. Such checks involve on-site inspection of employees’ wage records. Should discrepancies be detected, interviews and verifications with the employees may be conducted on the spot, and further checks made on the wage records.
If the employer is found to have underpaid or omitted to pay contributions, the arrears plus penalty interest will be computed and recovered.
Hope this helps.