Mr K Shanmugam is a very busy man. in the last 24 hours we’ve had a statement about further licenses for foreign law firms in Singapore…
and now we learn that the Singaporean? law Ministry is considering moves to protect deposit monies paid to law firms hired to process property deals.
The Straits Times reports that the Law Ministry is proposing new rules that? will stop lawyers from receiving deposits and instead wants them placed with the Singapore Academy of Law or other institutions such as banks.
The paper goes on to say…
The moves is meant to prevent rogue lawyers from running away with clients monies meant for conveyancing transactions as happened in 2007 when rogue lawyer Zulkifli Amin fled with $6 million.
A year earlier lawyer David Rasif also skipped town with some $11 million. Both are still at large.
Traditionally, lawyers hold clients’ monies in both private property and HDB deals. They could be holding the monies as the seller’s or buyer’s lawyer or as the CPF Board’s lawyers for the release of the buyer’s CPF monies.
He may hold the monies in the firm’s client account as deposits for the buyer to pay the seller’s lawyer in exercise of the option to purchase. He could also be holding the monies to pay to IRAS for stamp fees or to complete the purchase of the property.
Under the proposed new rules, lawyers will be prohibited from receiving conveyancing monies which will be held by the Singapore Academy of Law or some other entity appointed by the Law Minister.
To prevent manipulation of the names of payees, the appointed entities will only pay to approved categories such as the sellers, mortgage banks and others as indicated.
Lawyers who fail to comply will face disciplinary actions under the new proposed moves.
The Singaporean Law Ministry has invited people to provide? feedback on the moves and the full consultation paper can currently be viewed at www.minlaw.gov.sg and http://app.reach.gov.sg/olcp/asp/ocp01a.asp
The consultation period is from Aug 11 to 26.
Feedback may also be sent in electronic form to MLAW_Consultation(at)mlaw.gov.sg
or hard copy form to:
Legal Policy Division
Ministry of Law
100 High Street
#08-02 The Treasury
S(179434)
Fax: 6332 8842
http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_415263.html
