Accountability of Lawyers in Performing Background Checks on Foreign Clients Setting up Companies in Singapore

4 Mr Yip Hon Weng asked the Minister for Law with regard to the case of the members of a Japanese money-laundering syndicate setting up companies in Singapore (a) what is the accountability of the lawyers who acted for such companies as Corporate Service Provider; and (b) whether the current verification process by lawyers to do background checks on clients will be reviewed.

Mr K Shanmugam: The Ministry of Law and the Accounting and Corporate Regulatory Authority are looking into this matter.

There are anti-money laundering and countering the financing of terrorism (AML/CFT) requirements that apply separately to both lawyers and corporate service providers (CSPs). Lawyers who act as CSPs are expected to fully comply with the AML/CFT requirements applicable to all CSPs. These include requirements to conduct customer due diligence, enhanced customer due diligence for higher-risk customers and to report suspicious transactions.

Singapore’s AML/CFT requirements on verification and background checks are reviewed to be consistent with applicable international standards.