Anti-Money Laundering Rules For Lawyers Come into Force on 15 August 2007
The Law Society of Singapore has amended its Legal Profession (Professional Conduct) Rules (the ‘Rules’) to ensure that that Singapore meet its international obligations required by the Financial Action Task Force (of which Singapore is a member country), an inter-governmental body set up to develop and promote policies to combat money laundering and terrorist financing and to monitor such activities.
The Rules have been amended to take effect from 15 August 2007. Lawyers were first notified of these changes in February 2006.
New Rules 11D to 11H set out the legal framework to combat money laundering. New Rule 11I give powers to the Council of the Law Society to monitor compliance by law practices of the anti-money laundering rules.
The Rules embody the maxims: "Know Your Clients" and "Know Your Clients' Business Relationships" commonly found in many similar regulations. The Rules also require a law practice to maintain clients' records for 5 years.
The effect of such rules is that a law practice cannot receive money from parties that the practice does not know or does not know the source of. If a lawyer comes across a transaction that he suspects involves money laundering, there is now a statutory duty to report such transactions to the Commercial Affairs Department under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act.
The Law Society of Singapore first issued Guidance Notes on money laundering to lawyers in September 1998. In March 2003 these were updated to cover new legislation on terrorist activities. The Guidelines are intended to guide lawyers identify suspicious transactions and determine when there is an obligation to make the appropriate suspicious transaction reports to the authorities. With the present amendments, anti-money laundering rules now have the force of law.
The Rules have been amended to take effect from 15 August 2007. Lawyers were first notified of these changes in February 2006.
New Rules 11D to 11H set out the legal framework to combat money laundering. New Rule 11I give powers to the Council of the Law Society to monitor compliance by law practices of the anti-money laundering rules.
The Rules embody the maxims: "Know Your Clients" and "Know Your Clients' Business Relationships" commonly found in many similar regulations. The Rules also require a law practice to maintain clients' records for 5 years.
The effect of such rules is that a law practice cannot receive money from parties that the practice does not know or does not know the source of. If a lawyer comes across a transaction that he suspects involves money laundering, there is now a statutory duty to report such transactions to the Commercial Affairs Department under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act.
The Law Society of Singapore first issued Guidance Notes on money laundering to lawyers in September 1998. In March 2003 these were updated to cover new legislation on terrorist activities. The Guidelines are intended to guide lawyers identify suspicious transactions and determine when there is an obligation to make the appropriate suspicious transaction reports to the authorities. With the present amendments, anti-money laundering rules now have the force of law.
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