Legal Profession Act 1966 - Singapore Statutes Online

PART 5A

PREVENTION OF MONEY LAUNDERING,
TERRORISM FINANCING AND FINANCING OF
PROLIFERATION OF WEAPONS OF
MASS DESTRUCTION

[Act 6 of 2024 wef 01/05/2024]

Interpretation of this Part

70A.—(1) This Part relates to the measures which a legal practitioner or law practice must take, when preparing for or carrying out any transaction concerning a relevant matter, to prevent the transaction from being used to facilitate one or more of the following:

(a)	money laundering; [Act 6 of 2024 wef 01/05/2024]
(b)	the financing of terrorism; [Act 6 of 2024 wef 01/05/2024]
(c)	the financing of proliferation of weapons of mass destruction. [40/2014] [Act 6 of 2024 wef 01/05/2024]

(2) In this Part, unless the context otherwise requires —

“law practice” means a Singapore law practice, a Qualifying Foreign Law Practice, a licensed foreign law practice, the constituent foreign law practice of a Joint Law Venture, or a foreign law practice which is a member of a Formal Law Alliance, and includes a Joint Law Venture, a Formal Law Alliance and any branch or office outside Singapore of a Singapore law practice;

“legal practitioner” means any advocate and solicitor or foreign lawyer to whom this Part applies;

“relevant matter” means any of the following matters:

(a)

acquisition, divestment or any other dealing of any interest in real estate;

(b)

management of client’s moneys, securities or other assets, or of bank, savings or securities accounts;

(c)

creation, operation or management of any company, corporation, partnership, society, trust or other legal entity or legal arrangement;

(d)

acquisition, merger, sale or disposal of any company, corporation, partnership, sole proprietorship, business trust or other business entity;

(e)

any matter, in which a legal practitioner or law practice acts for a client, that is unusual in the ordinary course of business, having regard to —

(i)	the complexity of the matter;
(ii)	the quantum involved;
(iii)	any apparent economic or lawful purpose of the matter; and
(iv)	the business and risk profile of the client. [40/2014]

(3) In this Part, unless the context otherwise requires, a reference to this Part includes a reference to any rules made under section 70H.

[40/2014]

Prohibition against anonymous accounts

70B. A legal practitioner or law practice must not open or maintain any account for or hold and receive moneys from —

(a)	an anonymous source; or
(b)	a client with an obviously fictitious name. [40/2014]

Customer due diligence measures

70C. A legal practitioner or law practice must perform such customer due diligence measures as may be prescribed at such times as may be prescribed.

[40/2014]

Suspicious transaction reporting

70D. Where a legal practitioner or law practice knows or has reasonable grounds to suspect any matter referred to in section 45(1) of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992, the legal practitioner or law practice must, in accordance with section 45 of that Act, disclose the matter to —

(a)	a Suspicious Transaction Reporting Officer under that Act by way of a suspicious transaction report; or
(b)	an authorised officer under that Act. [40/2014]

Keeping of records

70E.—(1) A legal practitioner must maintain —

(a)	all documents and records relating to each relevant matter in which the legal practitioner has acted; and
(b)	all documents and records obtained by the legal practitioner through the customer due diligence measures performed under section 70C. [40/2014]

(2) A law practice must maintain —

(a)	all documents and records relating to each relevant matter in which the law practice, or any legal practitioner in the law practice, has acted; and
(b)	all documents and records obtained by the law practice, or by any legal practitioner in the law practice, through the customer due diligence measures performed under section 70C. [40/2014]

(3) The documents and records mentioned in subsections (1) and (2) must be maintained for such periods as may be prescribed.

[40/2014]

(4) For the purposes of subsection (3), different periods may be prescribed for different documents and records.

[40/2014]

Powers of inspection by Council

70F.—(1) In order to ascertain whether this Part is being complied with, the Council may, on its own motion or upon receiving any written complaint, require a legal practitioner or a sole proprietor, partner or director of a law practice to produce any document or provide any information or explanation to the Council or to any person appointed by the Council.

[40/2014]

(2) Upon being required to produce any document, information or explanation, the legal practitioner or the sole proprietor, partner or director of the law practice must provide to the Council, or to any person appointed by the Council under subsection (1), the document, information or explanation.

[40/2014]

(3) A document that is in electronic form must be produced in the form or format required by the Council or the person appointed by the Council under subsection (1).

[40/2014]

(4) The Council, or the person appointed by the Council under subsection (1), may —

(a)	retain the document provided and make and retain copies of the document; and
(b)	record the information or explanation provided. [40/2014]

(5) The Council may —

(a)

use the document, information or explanation obtained as a basis for proceedings under this Act; and

(b)

disclose the document, information or explanation for all or any of the following purposes:

(i)	an investigation of a criminal offence, and any subsequent criminal proceedings;
(ii)	any disciplinary proceedings under section 70G(1) against a legal practitioner;
(iii)	any regulatory action under section 70G(2) against a law practice. [40/2014]

Contravention of this Part

70G.—(1) Disciplinary proceedings may be taken against any legal practitioner who contravenes this Part.

[40/2014]

(2) Such regulatory action as may be prescribed may be taken against any law practice which contravenes this Part.

[40/2014]

Rules for prevention of money laundering, terrorism financing and financing of proliferation of weapons of mass destruction

70H.—(1) The Council may, with the approval of the Minister, make such rules as may be necessary or expedient for the purposes of this Part.

[40/2014]

(2) Without limiting subsection (1), the Council may, with the approval of the Minister, make rules —

(a)	to prescribe, for the purposes of the definition of “legal practitioner” in section 70A(2), the types of advocates and solicitors and foreign lawyers to whom this Part applies;
(b)	to specify how a legal practitioner or law practice is to apply this Part;
(c)	to specify the measures which a legal practitioner or law practice is to take when preparing for or carrying out any transaction concerning a relevant matter;
(d)	to prescribe, for the purposes of section 70G(1), different types of disciplinary proceedings for different types of legal practitioners;
(e)	to prescribe, for the purposes of section 70G(2), different types of regulatory actions for different types of law practices;
(f)	to prescribe such transitional, savings or other consequential provisions as may be necessary or expedient for the purposes of this Part; and
(g)	to prescribe anything which may be prescribed under this Part. [40/2014] [Act 6 of 2024 wef 01/05/2024]

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