Singapore legislation
Schedule 3
Schedule 3
Blocked accounts
THIRD SCHEDULESection 34(2)Blocked accounts
1. In this Schedule —“banker”, in relation to any person, means a banker who opens a blocked account in favour of that person;“blocked account” means an account opened as a blocked account at an office or branch in Singapore in favour of any person by a banker authorised by the Authority to open blocked accounts.
2. Where a direction is given that a payment is to be made to a blocked account only, then, subject to paragraph 3 —
the manner in which the payment may be made shall be either —
to the banker, with a direction that it is to be credited to a blocked account of that person [which direction may, in the case of a payment by means of a cheque or warrant, be made by marking the cheque or warrant with the words “blocked account of” (naming the person in question) or words to the same effect]; or
by a crossed cheque or warrant drawn in favour of that person, marked with the words “payable only to blocked account of payee” or words to the same effect; and
the sum collected shall be credited by the banker to a blocked account of that person.
3. Where a direction is given that a sum is to be paid or credited to a blocked account only, then, notwithstanding the direction, the sum may, with the consent of the person to whom it is to be paid or credited, and subject to the requirements of Part 4 of this Act, be invested instead in the purchase for that person of any such investments as may be prescribed for the purposes of paragraph 4(2).4.—
Any sum standing to the credit of a blocked account shall not be dealt with except with the permission of the Authority.(2) Subject to compliance with the requirements of Part 4 of this Act the whole or any part of any sum referred to in sub‑paragraph (1) may, at the request of the person in whose name the account stands, be invested through the banker in such investments as may be prescribed.(3) Nothing in this Schedule shall be construed as restricting the manner in which the investments acquired under sub‑paragraph (2) may be dealt with.5.—
Where a person in whose name a blocked account is standing becomes bankrupt in Singapore or dies, the banker may, notwithstanding anything in paragraph 4, transfer the account to the name of the trustee in bankruptcy or personal representative, but, save as aforesaid, no change shall, except with the permission of the Authority, be made in the name in which the account stands.(2) Where any such change is made (whether or not the permission of the Authority is necessary therefor) the account shall remain a blocked account notwithstanding the change, and this Schedule shall apply accordingly.(3) In sub-paragraph (1), “trustee in bankruptcy” includes the Official Assignee.6.—
Where —
a sum is due from any person to any other person but the Authority directs that it shall be paid or credited to a blocked account only; and
the person to whom the sum is due nominates such an account to the person from whom the sum is due,the last mentioned person is under a duty to the person to whom the sum is due to cause the sum to be paid or credited to that blocked account.(2) The crediting of any sum to a blocked account in pursuance of a direction of the Authority shall, to the extent of the sum credited, be a good discharge to the person from whom the sum is due.(3) In the case of a sum due under a contract, this paragraph shall not apply insofar as it is shown to be inconsistent with the intention of the parties that it should apply.