9.—(1) Subject to paragraph (3), any financial institution that has in its possession, custody or control in Singapore, any funds, other financial assets or economic resources owned or controlled, directly or indirectly, by any designated person must —
(a)
immediately freeze all such funds, financial assets or economic resources, as the case may be; and
(b)
ensure that such funds, financial assets or economic resources are not made available, whether directly or indirectly, to or for the benefit of the designated person.
(2) For the purposes of paragraph (1) and regulation 12(b) and (c), any funds, other financial assets or economic resources that are held by —
(a)
any entity owned or controlled, directly or indirectly, including through illicit means, by any designated person; or
[S 481/2017 wef 31/08/2017]
(b)
any individual or entity who acts on behalf of or under the direction of any designated person,
are treated as funds, financial assets or economic resources owned or controlled by the designated person.
(3) The requirement in paragraph (1) does not apply if the Authority gives a written notice to the financial institution or the class of financial institutions to which the financial institution belongs that the funds, other financial assets or economic resources are —
(a)
necessary for the payment of —
(i)
basic expenses, including any payment for foodstuff, rent, the discharge of a mortgage, medicine, medical treatment, taxes, insurance premiums and public utility charges; or
(ii)
any extraordinary expenses;
(b)
exclusively for —
(i)
the payment of reasonable professional fees and the reimbursement of any expenses incurred in connection with the provision of legal services; or
(ii)
the payment of fees or service charges imposed for the routine holding or maintenance of frozen funds, financial assets or economic resources; or
(c)
the subject of any judicial, administrative or arbitral lien or judgment.
(4) Where the Authority gives a notice under paragraph (3)(c) that any funds, other financial assets or economic resources are the subject of any judicial, administrative or arbitral lien or judgment, the funds, financial assets or economic resources may be used to satisfy such lien or judgment but only if the lien or judgment —
(a)
arose or was entered before 14 October 2006; and
(b)
is not for the benefit of a designated person.
(5) To avoid doubt, paragraph (1) applies to all funds, financial assets or economic resources frozen pursuant to regulation 5(1) of the Monetary Authority of Singapore (Freezing of Assets of Persons — Democratic People’s Republic of Korea) Regulations 2009 (G.N. No. S 258/2009), revoked by these Regulations.
Informal Consolidation | Amended S 637/2017
Assets of designated persons to be subject to asset freeze
9.—(1) Subject to paragraph (3), any financial institution that has in its possession, custody or control in Singapore, any funds, other financial assets or economic resources owned or controlled, directly or indirectly, by any designated person must —
(a)
immediately freeze all such funds, financial assets or economic resources, as the case may be; and
(b)
ensure that such funds, financial assets or economic resources are not made available, whether directly or indirectly, to or for the benefit of the designated person.
(2) For the purposes of paragraph (1) and regulation 12(b) and (c), any funds, other financial assets or economic resources that are held by —
(a)
any entity owned or controlled, directly or indirectly, including through illicit means, by any designated person; or
[S 481/2017 wef 31/08/2017]
(b)
any individual or entity who acts on behalf of or under the direction of any designated person,
are treated as funds, financial assets or economic resources owned or controlled by the designated person.
(3) The requirement in paragraph (1) does not apply if the Authority gives a written notice to the financial institution or the class of financial institutions to which the financial institution belongs that the funds, other financial assets or economic resources are —
(a)
necessary for the payment of —
(i)
basic expenses, including any payment for foodstuff, rent, the discharge of a mortgage, medicine, medical treatment, taxes, insurance premiums and public utility charges; or
(ii)
any extraordinary expenses;
(b)
exclusively for —
(i)
the payment of reasonable professional fees and the reimbursement of any expenses incurred in connection with the provision of legal services; or
(ii)
the payment of fees or service charges imposed for the routine holding or maintenance of frozen funds, financial assets or economic resources; or
(c)
the subject of any judicial, administrative or arbitral lien or judgment.
(4) Where the Authority gives a notice under paragraph (3)(c) that any funds, other financial assets or economic resources are the subject of any judicial, administrative or arbitral lien or judgment, the funds, financial assets or economic resources may be used to satisfy such lien or judgment but only if the lien or judgment —
(a)
arose or was entered before 14 October 2006; and
(b)
is not, whether directly or indirectly, for the benefit of a designated person.
[S 637/2017 wef 04/11/2017]
(5) To avoid doubt, paragraph (1) applies to all funds, financial assets or economic resources frozen pursuant to regulation 5(1) of the Monetary Authority of Singapore (Freezing of Assets of Persons — Democratic People’s Republic of Korea) Regulations 2009 (G.N. No. S 258/2009), revoked by these Regulations.