Singapore Law Firms Penalized in $3 Billion Money Laundering Probe
Authorities Act Against Firms for AML Breaches Linked to Major Financial Crime
Singapore’s Ministry of Law (MinLaw) has imposed penalties on several law firms and referred lawyers for disciplinary action following breaches of anti-money laundering regulations. These actions stem from the nation’s largest money laundering case, involving approximately $3 billion in illicit funds and assets.
Firms Face Sanctions for AML Deficiencies
MinLaw announced that the Director of Legal Services (DLS) has addressed 13 out of 24 law practices involved in property transactions connected to the extensive money laundering scheme. Investigations into the remaining 11 firms are continuing.
Anthony Law Corporation (ALC) received a financial penalty of $100,000. The firm’s conveyancing head, Mr Tan Chau Chuang, has been referred to the Law Society. ALC facilitated the transfer of 25 properties valued at around $135 million for nine clients, failing to adequately verify explanations for third-party funding and continuing to act for clients despite filing Suspicious Transaction Reports (STRs).
Fortis Law Corporation (FLC) was fined $30,000. Two of its lawyers, Mr Andrew Wong Wei Kiat and Mr Patrick Tan Tse Chia, have been referred to the Law Society. FLC handled 55 property transactions totaling approximately $398.7 million for 16 clients. The firm did not sufficiently verify client claims regarding payments sourced from legitimate remittance companies.
Legal Solutions LLC (LS) was ordered to pay $70,000. Mr Patrick Ee Tian Huat, a former lawyer at LS, was referred to the Law Society. LS acted for two clients in 20 property deals worth about $117 million. MinLaw noted LS failed to conduct required enhanced customer due diligence after filing an STR, including documenting internal discussions on client retention.
Reprimands Issued to Additional Firms
Three law firms received reprimands to underscore their anti-money laundering responsibilities. These include Malkin & Maxwell LLP, which handled one property transaction valued at roughly $40 million. William Poh & Louis Lim, now operating as Louis Lim & Partners, and Templars Law LLC were also reprimanded.
Mr William Poh Tian Hock, formerly of William Poh & Louis Lim, faces referral to the Law Society. He was involved in transactions for six clients, involving 32 properties valued at approximately $246.7 million. Twenty-six of these deals were completed before he moved to Templars Law LLC in May 2023, where he subsequently handled the remaining six transactions.
Broader Regulatory Oversight
MinLaw stated that the fees collected by the penalized law practices ranged from $15,000 to $170,000 for their services in these transactions.
The ministry had previously announced its support for the DLS in investigating law practices involved in conveyancing for properties seized in the August 2023 anti-money laundering operation. The DLS, through the Legal Services Regulatory Authority, oversees legal practice regulation in Singapore.
The Law Society plays a crucial role in maintaining professional conduct standards. Breaching anti-money laundering obligations can result in regulatory actions against a law firm’s license.
Context of the $3 Billion Laundering Case
The extensive money laundering case, which surfaced in August 2023, led to the arrest of 10 foreigners. The individuals, originally from Fujian, China, were subsequently jailed, deported, and barred from re-entering Singapore.
The Financial Action Task Force (FATF) has emphasized the critical role of designated non-financial businesses and professions (DNFBPs), including lawyers, in combating money laundering and terrorist financing. In 2022, FATF stated that countries should assess and mitigate risks posed by legal professionals facilitating illicit financial flows (FATF 2022).
