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

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.

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.