5.—(1) Subject to paragraphs (2A) and (3), any financial institution that, on or after 8th July 2011, 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. [S 218/2015 wef 17/04/2015] |
(2) For the purposes of paragraph (1), any funds, other financial assets or economic resources that are held by —(a) | any individual or entity who acts on behalf of or under the direction of any designated person; or | (b) | any entity owned or controlled, directly or indirectly, by any designated person, |
are treated as funds, financial assets or economic resources owned or controlled by the designated person. |
[S 218/2015 wef 17/04/2015] |
(2A) The requirement in paragraph (1) does not apply to any funds, other financial assets or economic resources —(a) | owned or controlled, directly or indirectly, by a designated person specified in the Schedule; and | (b) | which came into or under the possession, custody or control in Singapore of a financial institution after 16 September 2011. [S 218/2015 wef 17/04/2015] |
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(2B) To avoid doubt, the requirement under paragraph (1) continues to apply to any funds, other financial assets or economic resources which were owned or controlled, directly or indirectly, by a designated person specified in the Schedule and which came into or under the possession, custody or control in Singapore of a financial institution on or before 16 September 2011, subject to —(a) | paragraph (3); and | (b) | any exemption from paragraph (1) granted under section 41C of the Act in relation to those funds, financial assets or economic resources. [S 218/2015 wef 17/04/2015] |
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(3) The requirement in paragraph (1) does not apply to any funds, other financial assets or economic resources that have been determined by the Authority —(a) | to be necessary —(i) | for the payment of 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) | exclusively for —(A) | the payment of reasonable professional fees and the reimbursement of any expenses in connection with the provision of legal services; or | (B) | the payment of fees or service charges imposed for the routine holding or maintenance of frozen funds, financial assets or economic resources; |
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| (b) | to be necessary for the payment of any extraordinary expenses; or | (c) | to be the subject of any judicial, administrative or arbitral lien or judgment, in which case the funds, financial assets or economic resources may be used to satisfy such lien or judgment, provided that the lien or judgment —(i) | arose or was entered into before 26th February 2011; and | (ii) | is not for the benefit of a designated person. [S 218/2015 wef 17/04/2015] |
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(4) A financial institution may credit to any account frozen under paragraph (1) —(a) | interest or other earnings due on the account; or | (b) | any payment due under any contract, agreement or obligation that arose before 8th July 2011, |
provided that any such interest, earnings or payment is subject to paragraph (1). |
[S 218/2015 wef 17/04/2015] |
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