MinLaw imposes penalties on two law firms in money laundering-linked conveyancing cases

On 15 July 2025, the Ministry of Law (MinLaw) announced that inquiries into 11 out of 24 law practices involved in conveyancing transactions related to properties seized in Singapore’s 2023 money laundering investigation have been completed.

The director of legal services (DLS) ordered two law firms to pay financial penalties of S$30,000 and S$100,000 respectively. A third law practice has been issued a statutory notice of the intention to impose a penalty of S$70,000, pending written representations.

Another law firm received a private reprimand, while one lawyer has been referred to the Law Society for potential disciplinary proceedings.

No regulatory action will be taken against the remaining seven law firms in the first batch of completed inquiries.

According to MinLaw, investigations into the other 13 firms are still ongoing to determine whether further penalties or referrals are warranted. The ministry did not identify the names of the law practices involved in the breaches, citing confidentiality under the Legal Profession Act.

The 2023 money laundering case remains one of Singapore’s largest, with illicit profits from an overseas gambling syndicate channelled through local purchases of luxury assets. Authorities seized more than 150 properties, along with vehicles, jewellery, cryptocurrency, and designer goods, as part of the S$3 billion investigation.

According to MinLaw, the gambling operations targeted punters in China and extended across Southeast Asia, generating substantial proceeds that were later laundered through high-value asset acquisitions in Singapore.

MinLaw underscored that all lawyers and law practices in Singapore are legally required to comply with strict anti-money laundering (AML) and countering the financing of terrorism (CFT) rules. These include conducting client due diligence, verifying the source of clients’ wealth and funds, assessing transaction risks, and filing suspicious transaction reports when necessary.

If lawyers have reasonable grounds to suspect a client’s involvement in money laundering, they must either withdraw from acting or implement enhanced due diligence and monitoring procedures to mitigate risk.

Failure to fulfil these obligations can result in regulatory or disciplinary action, including fines, licence suspension, or permanent disbarment.

MinLaw’s director of legal services reiterated that law firms play a key role in safeguarding Singapore’s financial integrity, especially given their involvement in property transactions that may be exploited for illicit purposes.

“The Ministry expects every law practice to maintain internal controls that are robust, regularly reviewed, and sufficient to detect and report suspicious activity,” the statement said.

To strengthen compliance, MinLaw issued a new guidance note on 23 June 2025 to the legal industry. The document outlines best practices for client risk assessment, identification of red flags, verification of wealth sources, and continuous transaction monitoring. It also sets clearer timelines for reporting suspicious transactions to authorities.

The guidance builds upon Singapore’s broader AML enforcement drive, which has seen several agencies intensify oversight following the 2023 scandal.

In a related development earlier this month, the Monetary Authority of Singapore (MAS) announced that nine financial institutions were fined a total of S$27.45 million for breaches linked to the same case. The breaches included lapses in client risk assessment, verification of wealth sources, and follow-up action on suspicious transactions.

Regulatory action was also taken against 18 individuals responsible for managing relationships with suspects. MAS said it would maintain close supervision of remediation measures and ensure internal systems are strengthened to prevent recurrence.

Both MinLaw and MAS emphasised that while Singapore’s AML regime remains among the most comprehensive globally, continued vigilance is necessary.

MinLaw stated that its ongoing inquiries aim to ensure the legal profession continues to uphold the standards expected of gatekeepers within the financial ecosystem.

A spokesperson said, “Everyone has a role in ensuring that Singapore’s anti-money laundering systems continue to be robust — from law enforcement agencies and financial institutions to law practices and the public.”

The ministry’s enforcement actions and continued investigations demonstrate its determination to hold the legal sector accountable in preserving Singapore’s reputation as a trusted and transparent financial hub.

Further updates on the remaining 13 law firm inquiries will be released once investigations conclude, MinLaw added.