Forum: Lawyers must conduct due diligence on clients and transactions
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We refer to the letter, “Do lawyers need to know client’s fund sources?” (Aug 28).
As a preliminary matter, as the recent money laundering case in question is the subject of ongoing court proceedings, it is not appropriate for the Law Society of Singapore to comment on this case specifically.
As a general observation, regarding lawyers’ duties to conduct due diligence, in appropriate cases, lawyers must perform due diligence concerning their client and the transaction on which they are engaged.
The due diligence on the client requires the lawyer to, among other things, ascertain and verify the identity of the client, and understand the nature of the client’s occupation or business.
The due diligence on the transaction requires the lawyer to ensure that the transaction is consistent with the lawyer’s knowledge of the client, the client’s occupation or business, and, where appropriate, the source of funds for the transaction.
Goh Wan Cheng
Director
Membership and External Relations
The Law Society of Singapore
