PART 2 | CUSTOMER DUE DILIGENCE MEASURES |
| Prescribed customer due diligence measures |
| 4. For the purposes of section 70C of the Act, a legal practitioner or law practice must perform the customer due diligence measures prescribed in this Part. |
| Client suspected of money laundering, financing of terrorism or proliferation financing |
5.—(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. |
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(2) 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. [S 473/2025 wef 01/07/2025] |
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| General customer due diligence measures in relation to client |
6.—(1) At the applicable time specified in rule 11, a legal practitioner or law practice must perform the following customer due diligence measures in relation to a client:| (a) | ascertain the identity of the client; | | (b) | verify the client’s identity using objectively reliable and independent source documents, data or information; | | (c) | take reasonable measures to determine whether the client is a politically-exposed individual, or a family member or close associate of any such individual; [S 473/2025 wef 01/07/2025] | | (d) | identify and, if appropriate, obtain information on the purpose and intended nature of the business relationship with the client. [S 473/2025 wef 01/07/2025] |
(2) Where the client is an entity or a legal arrangement, the customer due diligence measures that a legal practitioner or law practice must perform under paragraph (1)(a) and (b) include identifying the client and verifying the client’s identity, respectively, through the following information:| (a) | the name of the client; | | (b) | the legal form of the client; | | (c) | the documents that prove the existence of the client; | | (d) | 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); | | (e) | the individuals in the senior management of the client; | | (f) | the address of the registered office of the client; | | (g) | 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. |
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| (3) [Deleted by S 473/2025 wef 01/07/2025] |
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| General customer due diligence measures in relation to person purporting to act on client’s behalf |
7.—(1) At the applicable time specified in rule 11, a legal practitioner or law practice must perform customer due diligence measures to ascertain —| (a) | whether any other person is purporting to act on behalf of a client; and | | (b) | 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. |
(2) Where the person mentioned in paragraph (1)(a) or (b) is an individual, the legal practitioner or law practice must —| (a) | take reasonable measures to verify the identity of the individual using objectively reliable and independent source documents, data or information; and | | (b) | obtain appropriate documentary evidence to verify that —| (i) | in the case of paragraph (1)(a) — the individual is authorised to act on behalf of the client; or | | (ii) | in the case of paragraph (1)(b) — the client is authorised to act on behalf of the individual. |
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(3) Where the person mentioned in paragraph (1)(a) or (b) is an entity or the trustee or other person carrying out functions equivalent to a trustee (called the trustee) of a legal arrangement, the legal practitioner or law practice must —| (a) | 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 | | (b) | obtain appropriate documentary evidence to verify that —| (i) | in the case of paragraph (1)(a) — the entity or trustee is authorised to act on behalf of the client; or | | (ii) | in the case of paragraph (1)(b) — the client is authorised to act on behalf of the entity or trustee. [S 473/2025 wef 01/07/2025] |
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| General customer due diligence measures in relation to entity or legal arrangement |
8.—(1) At the applicable time specified in rule 11, a legal practitioner or law practice must perform the following customer due diligence measures in relation to a client which is an entity or a legal arrangement:| (a) | ascertain whether the client has any beneficial owner; | | (b) | ascertain the identity of each beneficial owner (if any); | | (c) | take reasonable measures to verify the identity of each beneficial owner (if any) using objectively reliable and independent source documents, data or information; | | (d) | 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; | | (e) | understand the nature of the client’s business; | | (f) | understand the ownership and control structure of the client. |
(2) Where the client is an entity, the customer due diligence measures that a legal practitioner or law practice must perform under paragraph (1)(b) and (c) include identifying, and taking reasonable measures to verify the identity of, each beneficial owner of the client, through the following information:| (a) | the identity of each individual (if any) who has a controlling ownership interest in the client; | | (b) | 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; | | (c) | 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. |
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(3) Where the client is a legal arrangement, the customer due diligence measures that a legal practitioner or law practice must perform under paragraph (1)(b) and (c) include identifying, and taking reasonable measures to verify the identity of, each beneficial owner of the client, through the following information:| (a) | 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); | | (b) | 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). |
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(4) Despite paragraphs (1), (2) and (3) but subject to paragraph (5), the legal practitioner or law practice need not perform the customer due diligence measures under paragraph (1)(b), (c) and (d) in relation to a client, if the client is —| (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; | | (b) | an entity listed on a stock exchange in a foreign country or territory that is subject to —| (i) | regulatory disclosure requirements; and | | (ii) | requirements relating to adequate transparency in respect of its beneficial owners, |
| imposed through stock exchange rules, law or other enforceable means; |
| | (c) | a relevant Singapore financial institution; or | | (d) | 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. [S 473/2025 wef 01/07/2025] |
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| (5) Paragraph (4) does not apply if the legal practitioner or law practice suspects that the client may be engaged in, or the business relationship with the client or the matter undertaken for the client may involve engagement in, money laundering, the financing of terrorism or proliferation financing. [S 473/2025 wef 01/07/2025] |
| (6) The legal practitioner or law practice must, when determining that the client is a financial institution mentioned in paragraph (4)(d), document the basis for making that determination. [S 473/2025 wef 01/07/2025] |
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| Ongoing customer due diligence measures |
9. A legal practitioner or law practice must perform the following ongoing customer due diligence measures during the course of a business relationship with a client:| (a) | the legal practitioner or law practice must scrutinise transactions undertaken throughout the course of the business relationship to ensure that those transactions are consistent with the legal practitioner’s or law practice’s knowledge of —| (i) | the client; | | (ii) | the client’s business; | | (iii) | the client’s risk profile; and | | (iv) | where appropriate, the source of funds for those transactions; |
| | (b) | the legal practitioner or law practice must ensure that the customer due diligence data, documents and information obtained in respect of the following persons are relevant and kept up-to-date, by undertaking reviews of existing customer due diligence data, documents and information, particularly if the client is a higher risk client:| (i) | the client; | | (ii) | each person acting on behalf of the client; | | (iii) | each person on whose behalf the client is acting; | | (iv) | each beneficial owner of the client; |
| | (c) | where the legal practitioner or law practice assesses the client to be a higher risk client, or the business relationship with the client to be a higher risk business relationship, the legal practitioner or law practice must —| (i) | perform enhanced customer due diligence measures in accordance with rule 13; and | | (ii) | obtain the approval of the legal practitioner’s or law practice’s senior management to retain the client or continue the business relationship with the client. [S 473/2025 wef 01/07/2025] |
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| Specific customer due diligence measures for legal practitioners who act as trustees |
10.—(1) A legal practitioner who acts as a trustee must perform the customer due diligence measures referred to in paragraphs (2) to (6).| (2) A legal practitioner who is a trustee of an express trust governed by Singapore law must, at the applicable time specified in rule 11, obtain and must maintain adequate, accurate and current information on the identities of the settlor, each trustee, the protector (if any) and each beneficiary or class of beneficiaries of the trust, and of any other individual exercising effective control over the trust. |
| (3) A legal practitioner who is a trustee of any trust governed by Singapore law must, at the applicable time specified in rule 11, obtain and must maintain basic information on every other regulated agent of, or service provider to, the trust, including any investment adviser or manager, accountant or tax adviser. |
| (4) The legal practitioner referred to in paragraph (2) or (3) must maintain the information referred to in the applicable paragraph for at least 5 years after the legal practitioner’s involvement with the trust ceases. |
| (5) The legal practitioner referred to in paragraph (2) or (3) must ensure that any information maintained pursuant to the applicable paragraph is kept accurate and as up-to-date as possible, and is updated on a timely basis. |
(6) Subject to any rule of law relating to a trustee’s duty of confidentiality, a legal practitioner must, when forming a business relationship with any person referred to in the following sub‑paragraphs in the legal practitioner’s capacity as a trustee, disclose to that person the legal practitioner’s status as such trustee:| (a) | a financial institution as defined in section 2 of the Financial Services and Markets Act 2022; [S 251/2023 wef 28/04/2023] | | (b) | a casino operator as defined in section 2(1) of the Casino Control Act 2006; [S 636/2024 wef 31/12/2021] | | (ba) | a developer as defined in section 2 of the Sale of Commercial Properties Act 1979; [S 473/2025 wef 01/07/2025] | | (bb) | a housing developer as defined in section 2(1) of the Housing Developers (Control and Licensing) Act 1965; [S 473/2025 wef 01/07/2025] | | (c) | a licensed estate agent as defined in section 3(1) of the Estate Agents Act 2010; [S 636/2024 wef 31/12/2021] | | (d) | 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; [S 378/2024 wef 01/05/2024] | | (da) | a pawnbroker as defined in section 3(1) of the Pawnbrokers Act 2015; [S 992/2020 wef 14/12/2020] [S 636/2024 wef 31/12/2021] | | (e) | a legal practitioner; | | (f) | a foreign lawyer registered under section 36P of the Act; | | (g) | a notary public as defined in section 2 of the Notaries Public Act 1959; [S 636/2024 wef 31/12/2021] | | (h) | a public accountant as defined in section 2(1) of the Accountants Act 2004; [S 636/2024 wef 31/12/2021] | | (i) | a person (not being a legal practitioner or a public accountant) who provides one or more of the following services:| (i) | acting as an agent for the formation of entities; | | (ii) | 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; | | (iii) | 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; | | (iv) | 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; | | (v) | acting as (or arranging for another person to act as) a nominee shareholder for another person. |
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| Timing of certain customer due diligence measures |
| 11.—(1) Subject to paragraph (2), the applicable time for performing, in relation to a client, the customer due diligence measures referred to in rules 6(1) and (2), 7, 8(1), (2) and (3) and 10(2) and (3) is before the start, or during the course, of establishing a business relationship with the client. [S 473/2025 wef 01/07/2025] (2) A legal practitioner or law practice may complete the performance, in relation to a client, of a relevant customer due diligence measure as soon as reasonably practicable after establishing a business relationship with the client if —| (a) | completion of that measure after establishing the business relationship is necessary in order not to interrupt the normal conduct of business operations; and | | (b) | the risks of money laundering, the financing of terrorism and proliferation financing can be effectively managed. [S 473/2025 wef 01/07/2025] |
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(3) Where paragraph (2) applies —| (a) | in the case of a legal practitioner — the law practice in which the legal practitioner practises; or | | (b) | 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. |
[S 473/2025 wef 01/07/2025] |
(4) In this rule, “relevant customer due diligence measure” means a customer due diligence measure referred to —| (a) | 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 | | (b) | 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)). [S 473/2025 wef 01/07/2025] |
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| 12.—(1) A legal practitioner or law practice is to perform, in relation to a client, the customer due diligence measures prescribed in this Part to an extent that is commensurate with the level of risk of money laundering, the financing of terrorism and proliferation financing. [S 473/2025 wef 01/07/2025] (2) A legal practitioner or law practice must —| (a) | perform, in relation to each client, an adequate analysis of the risks of money laundering, the financing of terrorism and proliferation financing; [S 473/2025 wef 01/07/2025] | | (b) | document the analysis and the conclusions reached; and | | (c) | keep the analysis up to date. |
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| (3) [Deleted by S 473/2025 wef 01/07/2025] |
(4) The risks of money laundering, the financing of terrorism and proliferation financing are raised, if —| (a) | 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; | | (b) | 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; | | (c) | 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 | | (d) | 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. [S 473/2025 wef 01/07/2025] |
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| Enhanced customer due diligence measures |
13.—(1) A legal practitioner or law practice must, in addition to performing the other customer due diligence measures prescribed in this Part, perform the enhanced customer due diligence measures mentioned in paragraph (2), if —| (a) | the risks of money laundering, the financing of terrorism and proliferation financing are raised under rule 12(4); [S 473/2025 wef 01/07/2025] | | (b) | 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 | | (c) | both of the following apply:| (i) | the legal practitioner or law practice assesses the business relationship with the client to be a higher risk business relationship; | | (ii) | the client, or the beneficial owner of the client (being an entity or a legal arrangement), is —| (A) | a domestic politically-exposed individual; | | (B) | an individual who has been entrusted with a prominent function in an international organisation; or | | (C) | a family member or close associate of any individual mentioned in sub-paragraph (A) or (B). |
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(2) The enhanced customer due diligence measures to be performed by the legal practitioner or law practice are as follows:| (a) | obtain the approval of the legal practitioner’s or law practice’s senior management before —| (i) | in the case of a new client, establishing a business relationship with the client; or | | (ii) | in the case of an existing client, continuing a business relationship with the client; |
| | (b) | 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; | | (c) | conduct enhanced ongoing monitoring of the business relationship with the client; [S 473/2025 wef 01/07/2025] | | (d) | take all other reasonable measures in respect of the matters specified in paragraph (1)(a), (b) and (c), as applicable. [S 473/2025 wef 01/07/2025] |
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| Simplified customer due diligence measures |
13A.—(1) If all of the following conditions are met, a legal practitioner or law practice may, instead of performing the customer due diligence measures mentioned in rules 6, 7, 8 and 9, perform simplified customer due diligence measures in relation to a client, a person acting on behalf of the client or a person on whose behalf the client is acting:| (a) | 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; | | (b) | 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; | | (c) | none of the circumstances mentioned in rule 13 requiring enhanced customer due diligence measures exist. |
| (2) Simplified customer due diligence measures are measures that the legal practitioner or law practice considers adequate to ascertain the identity of the person on or in relation to whom the customer due diligence measures mentioned in rule 6, 7, 8 or 9 (as the case may be) are to be performed. |
(3) If a legal practitioner or law practice decides to perform simplified customer due diligence measures under paragraph (1), the legal practitioner or law practice must record —| (a) | the details of the risk assessment that formed the basis for the decision; and | | (b) | the simplified customer due diligence measures carried out. [S 473/2025 wef 01/07/2025] |
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14.—(1) A legal practitioner or law practice must perform, in relation to an existing client, the customer due diligence measures prescribed in this Part that are applicable to the client, based on the legal practitioner’s or law practice’s assessment of the materiality and risks of money laundering, the financing of terrorism and proliferation financing, taking into account —| (a) | any previous customer due diligence measures performed in relation to the client; | | (b) | the time when any customer due diligence measures were last performed in relation to the client; and | | (c) | the adequacy of the data, documents or information obtained from any previous customer due diligence measures performed in relation to the client. [S 473/2025 wef 01/07/2025] |
(2) In paragraph (1)(a), (b) and (c), “customer due diligence measures” includes any customer due diligence measures performed under —| (a) | the Legal Profession (Professional Conduct) Rules (R 1) as in force before 23 May 2015; or | | (b) | any practice directions, guidance notes and rulings issued by the Council or the Society, whether before, on or after 23 May 2015. |
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| Inability to complete customer due diligence measures |
15.—(1) Where a legal practitioner or law practice is unable to complete any customer due diligence measures prescribed in this Part in relation to a client, the legal practitioner or law practice —| (a) | must not commence any new business relationship, and must terminate any existing business relationship, with the client; | | (b) | must not undertake any transaction for the client; and | | (c) | must consider whether to file a suspicious transaction report in relation to the client. |
(2) For the purposes of paragraph (1), the legal practitioner or law practice is unable to complete those customer due diligence measures, if —| (a) | 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 | | (b) | 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. |
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16. Where a legal practitioner or law practice —| (a) | suspects that a client may be engaged in money laundering, the financing of terrorism or proliferation financing; and | | (b) | has reason to believe that the performance of any customer due diligence measures prescribed in this Part will tip-off the client, any person acting on behalf of the client or any person on whose behalf the client is acting, |
| the legal practitioner or law practice — |
| (c) | need not perform those customer due diligence measures; but | | (d) | must instead file 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. [S 473/2025 wef 01/07/2025] |
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| Performance of customer due diligence measures by third parties |
| 17.—(1) A legal practitioner or law practice cannot rely on a third party to perform any customer due diligence measures prescribed in rule 9. [S 473/2025 wef 01/07/2025] | (2) Even if a legal practitioner or law practice relies on a third party to perform any customer due diligence measures prescribed in this Part (other than rule 9), the legal practitioner or law practice remains responsible for the performance of those measures. [S 473/2025 wef 01/07/2025] |
(3) Where a legal practitioner or law practice relies on a third party to perform any customer due diligence measures prescribed in this Part (other than rule 9), the legal practitioner or law practice must —| (a) | document the basis for the legal practitioner’s or law practice’s opinion in paragraph (4)(a) and (b); and | | (b) | 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. [S 473/2025 wef 01/07/2025] |
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(4) Before a legal practitioner or law practice relies on a third party to perform any customer due diligence measures prescribed in this Part (other than rule 9), the legal practitioner or law practice must —| (a) | 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; | | (b) | be satisfied that the third party —| (i) | 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 | | (ii) | has adequate measures in place for compliance with the requirements mentioned in sub-paragraph (i); and |
| | (c) | 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). [S 473/2025 wef 01/07/2025] |
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| Internal programmes and risk assessment |
18.—(1) A law practice must implement programmes for the prevention of money laundering, the financing of terrorism and proliferation financing which have regard to —| (a) | the risks of money laundering, the financing of terrorism and proliferation financing; and [S 473/2025 wef 01/07/2025] | | (b) | the size of the law practice. [S 473/2025 wef 01/07/2025] |
(2) The law practice must, in particular —| (a) | take appropriate steps to identify, assess and understand the risks of money laundering, the financing of terrorism and proliferation financing, in relation to —| (i) | the law practice’s clients; | | (ii) | the countries, territories or jurisdictions that the law practice’s clients are from or in, or have operations in; and | | (iii) | the law practice’s products, services, transactions and delivery channels; |
| | (b) | for the purposes of sub-paragraph (a) —| (i) | document the risk assessments; | | (ii) | consider all relevant risk factors before determining the overall level of risk and the appropriate type and extent of mitigation to be applied; | | (iii) | keep the risk assessments up to date; and | | (iv) | provide the risk assessments to the Council upon the Council’s request; |
| | (c) | develop and implement internal policies, procedures and controls, which must be approved by the law practice’s senior management, including —| (i) | making appropriate compliance management arrangements; and | | (ii) | 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; |
| | (d) | 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); | | (e) | take enhanced measures to manage and mitigate the risks of money laundering, the financing of terrorism and proliferation financing where higher risks are identified; | | (f) | have an ongoing programme to train the law practice’s partners, directors and employees on —| (i) | the laws and regulations relating to the prevention of money laundering, the financing of terrorism and proliferation financing; and | | (ii) | the internal policies, procedures and controls mentioned in sub-paragraph (c); and |
| | (g) | 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). [S 473/2025 wef 01/07/2025] |
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| (3) [Deleted by S 473/2025 wef 01/07/2025] |
| (4) [Deleted by S 473/2025 wef 01/07/2025] |
| (5) [Deleted by S 473/2025 wef 01/07/2025] [S 473/2025 wef 01/07/2025] |
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| Group policy for branches and subsidiaries |
18A.—(1) This rule applies to a Singapore law practice which has, whether in Singapore or in a foreign country or territory —| (a) | any branch; or | | (b) | any subsidiary where more than 50% of the shares or other equity interests of the subsidiary are owned by the Singapore law practice. |
| (2) The Singapore law practice must implement group-wide programmes for the prevention of money laundering, the financing of terrorism and proliferation financing that apply to, and are appropriate for, every branch and subsidiary mentioned in paragraph (1). |
(3) The group-wide programmes mentioned in paragraph (2) must include —| (a) | 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 | | (b) | subject to paragraph (4), measures to share information —| (i) | between the Singapore law practice’s branches and subsidiaries, and the Singapore law practice; and | | (ii) | 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. |
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(4) The measures mentioned in paragraph (3)(b) —| (a) | must incorporate adequate safeguards to —| (i) | protect the confidentiality and use of any information that is shared; and | | (ii) | not tip off any person arising from any information that is shared (including to not share the information, where appropriate); and |
| | (b) | 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. |
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| (5) The Singapore law practice must, as far as possible, ensure that every branch and subsidiary referred to in paragraph (1) operating in a foreign country or territory applies measures for the prevention of money laundering, the financing of terrorism and proliferation financing that are consistent with the measures for the prevention of money laundering, the financing of terrorism and proliferation financing that are applicable in Singapore. [S 473/2025 wef 01/07/2025] |
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