Singapore legislation

Regulation 5

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

Regulation 5

Client suspected of money laundering, financing of terrorism or proliferation financing

Amended byS 473/2025 wef 01/07/2025

Subregulation 1

Where a legal practitioner or law practice has reasonable grounds to suspect that a client may be engaged in money laundering, the financing of terrorism or proliferation financing, the legal practitioner or law practice —

(a)

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:

(i)

a Suspicious Transaction Reporting Officer;

(ii)

a police officer or Commercial Affairs Officer; and

(b)

must consider if it is appropriate to —

(i)

continue a business relationship with the client; or

(ii)

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

Subregulation 2

Amended byS 473/2025 wef 01/07/2025

Where the legal practitioner or law practice continues a business relationship with, establishes a new business relationship with, or undertakes a new matter for, the client mentioned in paragraph (1), the legal practitioner or law practice must —

(a)

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

(b)

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