Legal Profession (Prevention of Money Laundering, Financing of Terrorism and Proliferation Financing) Rules 2015

must disclose the suspicion, or the information on which the suspicion is based, by filing a suspicious transaction report with either or both of the following, as the case may be:

a Suspicious Transaction Reporting Officer;

a police officer or Commercial Affairs Officer; and

must consider if it is appropriate to —

continue a business relationship with the client; or

establish a new business relationship with, or undertake a new matter for, the client.

substantiate the reasons for continuing or establishing the business relationship with, or undertaking the matter for, the client, and document those reasons; and

subject the business relationship or matter to commensurate risk mitigation measures, including enhanced ongoing monitoring.

ascertain the identity of the client;

verify the client’s identity using objectively reliable and independent source documents, data or information;

take reasonable measures to determine whether the client is a politically-exposed individual, or a family member or close associate of any such individual;

identify and, if appropriate, obtain information on the purpose and intended nature of the business relationship with the client.

the name of the client;

the legal form of the client;

the documents that prove the existence of the client;

the documents that regulate and bind the client (such as the constitution, or the memorandum and articles of association, of a company, if the client is a company, or the trust deed of an express trust, if the client is an express trust);

the individuals in the senior management of the client;

the address of the registered office of the client;

the address of a principal place of business of the client, if the registered office of the client is not a principal place of business of the client.

whether any other person is purporting to act on behalf of a client; and

whether the client is acting on behalf of another person,in relation to and for the purpose of a matter undertaken or to be undertaken by the legal practitioner or law practice for the client.

take reasonable measures to verify the identity of the individual using objectively reliable and independent source documents, data or information; and

obtain appropriate documentary evidence to verify that —

in the case of paragraph (1)(a) — the individual is authorised to act on behalf of the client; or

in the case of paragraph (1)(b) — the client is authorised to act on behalf of the individual.

perform the customer due diligence measures mentioned in rules 6(2) and 8 on the entity or legal arrangement, and for this purpose the reference to a client in those rules is a reference to the entity or legal arrangement; and

obtain appropriate documentary evidence to verify that —

in the case of paragraph (1)(a) — the entity or trustee is authorised to act on behalf of the client; or

in the case of paragraph (1)(b) — the client is authorised to act on behalf of the entity or trustee.

ascertain whether the client has any beneficial owner;

ascertain the identity of each beneficial owner (if any);

take reasonable measures to verify the identity of each beneficial owner (if any) using objectively reliable and independent source documents, data or information;

take reasonable measures to determine whether each beneficial owner (if any) is a politically-exposed individual, or a family member or close associate of any such individual;

understand the nature of the client’s business;

understand the ownership and control structure of the client.

the identity of each individual (if any) who has a controlling ownership interest in the client;

if there is any doubt as to whether an individual who has a controlling ownership interest in the client is a beneficial owner of the client, or if there is no individual who has a controlling ownership interest in the client, the identity of each individual (if any) who has control of the client through other means;

if there is no individual who has a controlling ownership interest in the client or who has control of the client through other means, the identity of each individual in the senior management of the client.

if the client is an express trust, the identities of the settlor, each trustee, the protector (if any) and each beneficiary or class of beneficiaries of the trust, and any other individual exercising effective control over the client (including through a chain of control or ownership);

if the client is any other legal arrangement, the identity of each person in an equivalent or a similar position to a settlor, trustee, protector or beneficiary of a trust, or to an individual referred to in sub-paragraph (a).

an entity listed on the Singapore Exchange, or a subsidiary of such an entity more than 50% of the shares or other equity interests of which are owned by the entity;

an entity listed on a stock exchange in a foreign country or territory that is subject to —

regulatory disclosure requirements; and

requirements relating to adequate transparency in respect of its beneficial owners,imposed through stock exchange rules, law or other enforceable means;

a relevant Singapore financial institution; or

a financial institution incorporated or established outside Singapore that is subject to and supervised for compliance with requirements for the prevention of money laundering, the financing of terrorism and proliferation financing, consistent with the standards set by the FATF.

a financial institution as defined in section 2 of the Financial Services and Markets Act 2022;

a casino operator as defined in section 2(1) of the Casino Control Act 2006;

a licensed estate agent as defined in section 3(1) of the Estate Agents Act 2010;

a regulated dealer as defined in section 2 of the Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019;

a legal practitioner;

a foreign lawyer registered under section 36P of the Act;

a notary public as defined in section 2 of the Notaries Public Act 1959;

a public accountant as defined in section 2(1) of the Accountants Act 2004;

a person (not being a legal practitioner or a public accountant) who provides one or more of the following services:

acting as an agent for the formation of entities;

acting as (or arranging for another person to act as) a director or secretary of a company, a partner of a partnership, or a person holding a similar position in any other entity;

providing a registered office, any business address or any accommodation, correspondence or administrative address for a company, a partnership or any other entity or legal arrangement;

acting as (or arranging for another person to act as) a trustee of an express trust, or performing (or arranging for another person to perform) a function equivalent to the function of a trustee in any other legal arrangement;

acting as (or arranging for another person to act as) a nominee shareholder for another person.

completion of that measure after establishing the business relationship is necessary in order not to interrupt the normal conduct of business operations; and

the risks of money laundering, the financing of terrorism and proliferation financing can be effectively managed.

in the case of a legal practitioner — the law practice in which the legal practitioner practises; or

in the case of a law practice — the law practice,must adopt internal risk management policies and procedures concerning the conditions under which a legal practitioner who practises in the law practice, or the law practice, may establish a business relationship with a client before the completion of the relevant customer due diligence measure.

in rule 6(1)(b), (c) or (d), 7, 8(1)(b), (c), (d), (e) or (f), (2) or (3) or 10(2) or (3); or

in rule 6(2) (only insofar as it relates to the customer due diligence measure that a legal practitioner or law practice must perform under rule 6(1)(b)).

perform, in relation to each client, an adequate analysis of the risks of money laundering, the financing of terrorism and proliferation financing;

document the analysis and the conclusions reached; and

keep the analysis up to date.

the client is from or in, or the transaction relates to, any foreign country or territory in relation to which the FATF has called for countermeasures or enhanced customer due diligence measures;

the client is from or in any foreign country or territory known to have inadequate measures to prevent money laundering, the financing of terrorism or proliferation financing, as determined by the legal practitioner or law practice, or as notified to the legal practitioner or law practice generally by the Society or Director of Legal Services;

the client is from or in, or the transaction relates to, any foreign country or territory that the FATF has identified as a country, territory or jurisdiction subject to increased monitoring; or

the legal practitioner or law practice has reason to believe that the client, any person acting on behalf of the client or any person on whose behalf the client is acting, or the transaction, presents a high risk of money laundering, the financing of terrorism or proliferation financing.

the risks of money laundering, the financing of terrorism and proliferation financing are raised under rule 12(4);

the client, or the beneficial owner of the client (being an entity or a legal arrangement), is a foreign politically-exposed individual, or a family member or close associate of any such individual; or

both of the following apply:

the legal practitioner or law practice assesses the business relationship with the client to be a higher risk business relationship;

the client, or the beneficial owner of the client (being an entity or a legal arrangement), is —

a domestic politically-exposed individual;

an individual who has been entrusted with a prominent function in an international organisation; or

a family member or close associate of any individual mentioned in sub-paragraph (A) or (B).

obtain the approval of the legal practitioner’s or law practice’s senior management before —

in the case of a new client, establishing a business relationship with the client; or

in the case of an existing client, continuing a business relationship with the client;

take reasonable measures to establish the source of wealth, and the source of funds, of the client and, if the client is an entity or a legal arrangement, of the beneficial owner of the client;

conduct enhanced ongoing monitoring of the business relationship with the client;

take all other reasonable measures in respect of the matters specified in paragraph (1)(a), (b) and (c), as applicable.

the legal practitioner or law practice has, under rule 18(2)(a) and (b), assessed the risks of money laundering, the financing of terrorism and proliferation financing in relation to the client to be low;

the simplified customer due diligence measures are commensurate with the level of risk of the client engaging in money laundering, the financing of terrorism and proliferation financing as identified by the legal practitioner or law practice;

none of the circumstances mentioned in rule 13 requiring enhanced customer due diligence measures exist.

the details of the risk assessment that formed the basis for the decision; and

the simplified customer due diligence measures carried out.

any previous customer due diligence measures performed in relation to the client;

the time when any customer due diligence measures were last performed in relation to the client; and

the adequacy of the data, documents or information obtained from any previous customer due diligence measures performed in relation to the client.

the Legal Profession (Professional Conduct) Rules (R 1) as in force before 23 May 2015; or

any practice directions, guidance notes and rulings issued by the Council or the Society, whether before, on or after 23 May 2015.

must not commence any new business relationship, and must terminate any existing business relationship, with the client;

must not undertake any transaction for the client; and

must consider whether to file a suspicious transaction report in relation to the client.

the legal practitioner or law practice is unable to obtain, or to verify, any information required as part of those customer due diligence measures; or

the legal practitioner or law practice does not receive a satisfactory response to any inquiry in relation to any information required as part of those customer due diligence measures.

document the basis for the legal practitioner’s or law practice’s opinion in paragraph (4)(a) and (b); and

obtain from the third party without delay all documents and information acquired as a result of the customer due diligence measures performed by the third party.

be satisfied that where necessary, the legal practitioner or law practice will be able to obtain from the third party, upon request and without delay, any document or information acquired by the third party as a result of the customer due diligence measures performed by the third party;

be satisfied that the third party —

is subject to and supervised for compliance with requirements for the prevention of money laundering, the financing of terrorism and proliferation financing, consistent with the standards set by the FATF; and

has adequate measures in place for compliance with the requirements mentioned in sub-paragraph (i); and

take appropriate steps to identify, assess and understand the risks of money laundering, the financing of terrorism and proliferation financing in the countries, territories or jurisdictions that the third party operates in (if applicable).

the risks of money laundering, the financing of terrorism and proliferation financing; and

the size of the law practice.

take appropriate steps to identify, assess and understand the risks of money laundering, the financing of terrorism and proliferation financing, in relation to —

the law practice’s clients;

the countries, territories or jurisdictions that the law practice’s clients are from or in, or have operations in; and

the law practice’s products, services, transactions and delivery channels;

for the purposes of sub-paragraph (a) —

document the risk assessments;

consider all relevant risk factors before determining the overall level of risk and the appropriate type and extent of mitigation to be applied;

keep the risk assessments up to date; and

provide the risk assessments to the Council upon the Council’s request;

develop and implement internal policies, procedures and controls, which must be approved by the law practice’s senior management, including —

making appropriate compliance management arrangements; and

applying adequate screening procedures when hiring employees,to manage and mitigate the risks of money laundering, the financing of terrorism and proliferation financing identified by the law practice or notified to the law practice by the Society or Director of Legal Services;

obtain confirmation of the implementation, and the review, by an independent party of the internal policies, procedures and controls referred to in sub-paragraph (c);

take enhanced measures to manage and mitigate the risks of money laundering, the financing of terrorism and proliferation financing where higher risks are identified;

have an ongoing programme to train the law practice’s partners, directors and employees on —

the laws and regulations relating to the prevention of money laundering, the financing of terrorism and proliferation financing; and

the internal policies, procedures and controls mentioned in sub-paragraph (c); and

monitor the implementation of the internal policies, procedures and controls mentioned in sub-paragraph (c) and enhance the internal policies, procedures and controls (if necessary).

any branch; or

any subsidiary where more than 50% of the shares or other equity interests of the subsidiary are owned by the Singapore law practice.

the measures specified in rule 18(2), and for this purpose a reference to the law practice’s partners, directors and employees in rule 18(2)(f) is a reference to the partners, directors and employees of the law practice and every branch and subsidiary mentioned in paragraph (1); and

subject to paragraph (4), measures to share information —

between the Singapore law practice’s branches and subsidiaries, and the Singapore law practice; and

among the Singapore law practice’s branches and subsidiaries,for the purpose of performing customer due diligence measures or managing the risks of money laundering, the financing of terrorism and proliferation financing.

must incorporate adequate safeguards to —

protect the confidentiality and use of any information that is shared; and

not tip off any person arising from any information that is shared (including to not share the information, where appropriate); and

only apply to the extent permitted by the law of the foreign country or territory that the Singapore law practice’s branch or subsidiary (as the case may be) is in.

subject to sub-paragraph (b) —

the legal practitioner’s obligation under paragraph (1) to maintain a document or record relating to the relevant matter ceases when the legal practitioner ceases to practise; but(ii)the obligation of the law practice under paragraph (2) to maintain that document or record continues; or

if the law practice is dissolved, or the licence issued to the law practice is revoked, when the legal practitioner ceases to practise, and paragraph (5) does not apply —

the obligation of the law practice under paragraph (2) to maintain a document or record relating to the relevant matter ceases when the law practice is dissolved or the licence issued to the law practice is revoked (as the case may be); but(ii)the legal practitioner’s obligation under paragraph (1) to maintain that document or record continues, despite the legal practitioner ceasing to be a legal practitioner or to practise.

if Law Practice A (instead of the legal practitioner) continues to deal with the relevant matter, or continues to hold the documents and records relating to the relevant matter —

the legal practitioner’s obligation under paragraph (1) to maintain a document or record relating to the relevant matter ceases when the legal practitioner joins Law Practice B; but(ii)the obligation of Law Practice A under paragraph (2) to maintain that document or record continues;

if the legal practitioner (instead of Law Practice A) continues to deal with the relevant matter, or continues to hold the documents and records relating to the relevant matter —

the obligation of Law Practice A under paragraph (2) to maintain a document or record relating to the relevant matter ceases when the legal practitioner joins Law Practice B; but(ii)the legal practitioner’s obligation under paragraph (1) to maintain that document or record continues; or

if Law Practice A is dissolved, or the licence issued to Law Practice A is revoked, when the legal practitioner joins Law Practice B, and paragraph (5) does not apply —

the obligation of Law Practice A under paragraph (2) to maintain a document or record relating to the relevant matter ceases when Law Practice A is dissolved or the licence issued to Law Practice A is revoked (as the case may be); but(ii)the legal practitioner’s obligation under paragraph (1) to maintain that document or record continues, whether or not the legal practitioner continues to deal with the relevant matter, and whether or not the legal practitioner subsequently ceases to practise.

where the document or record is in relation to a client, for at least 5 years after the termination of the business relationship with the client; or

where the document or record is in relation to an occasional transaction, for at least 5 years after the date of that transaction.

where the document or record is in relation to a client, for at least 5 years after the termination of the business relationship with the client; or

where the document or record is in relation to an occasional transaction, for at least 5 years after the date of that transaction.

subject to sub-paragraph (b) —

the legal practitioner’s obligation under paragraph (1) to maintain a document or record obtained by the legal practitioner ceases when the legal practitioner ceases to practise; but(ii)the obligation of the law practice under paragraph (2) to maintain that document or record continues; or

if the law practice is dissolved, or the licence issued to the law practice is revoked, when the legal practitioner ceases to practise, and paragraph (5) does not apply —

the obligation of the law practice under paragraph (2) to maintain a document or record obtained by the legal practitioner ceases when the law practice is dissolved or the licence issued to the law practice is revoked (as the case may be); but(ii)the legal practitioner’s obligation under paragraph (1) to maintain that document or record continues, despite the legal practitioner ceasing to be a legal practitioner or to practise.

if Law Practice A (instead of the legal practitioner) continues to hold a document or record obtained by the legal practitioner through customer due diligence measures performed under section 70C of the Act —

the legal practitioner’s obligation under paragraph (1) to maintain that document or record ceases when the legal practitioner joins Law Practice B; but(ii)the obligation of Law Practice A under paragraph (2) to maintain that document or record continues;

if the legal practitioner (instead of Law Practice A) continues to hold a document or record obtained by the legal practitioner through customer due diligence measures performed under section 70C of the Act —

the obligation of Law Practice A under paragraph (2) to maintain that document or record ceases when the legal practitioner joins Law Practice B; but(ii)the legal practitioner’s obligation under paragraph (1) to maintain that document or record continues; or

if Law Practice A is dissolved, or the licence issued to Law Practice A is revoked, when the legal practitioner joins Law Practice B, and paragraph (5) does not apply —

the obligation of Law Practice A under paragraph (2) to maintain a document or record obtained by the legal practitioner ceases when Law Practice A is dissolved or the licence issued to Law Practice A is revoked (as the case may be); but(ii)the legal practitioner’s obligation under paragraph (1) to maintain that document or record continues, whether or not the legal practitioner subsequently ceases to practise.

to substantially permit a reconstruction of the relevant matter and of any transaction relating to the relevant matter; and

if necessary, to provide evidence for the prosecution of an offence relating to the relevant matter.

to substantially permit a reconstruction of the relevant matter and of any transaction relating to the relevant matter; and

if necessary, to provide evidence for the prosecution of an offence relating to the relevant matter.

must be made in writing by a member of the Council; and

may be served —

by delivering the requirement to the legal practitioner or the sole proprietor, partner or director of the law practice; (ii)by sending the requirement by registered post to the usual or last known address, as maintained by the Society, of the legal practitioner or the sole proprietor, partner or director of the law practice; or

by sending the requirement by electronic mail to any electronic mail address given to the Society by the legal practitioner, or the sole proprietor, partner or director of the law practice, with his or her consent to be served the requirement in that way.