All provisions · AML/CFT Act (Cap. 251) · Part Vi: Preventive measures
43 Obligation to cease transaction
(1) Where in relation to any customer, a reporting entity is unable to apply customer due diligence measures in accordance with this Act, the reporting entity shall—
(a) not carry out a transaction with or for the customer through a bank account;
(b) not establish a business relationship or carry out a one-off transaction with the customer;
(c) terminate any existing business relationship with the customer.
(2) Where a reporting entity is unable to undertake ongoing monitoring with respect to a business relationship, it shall terminate the business relationship.
(3) Where subsections (1) or (2) applies in relation to any customer, the reporting entity shall also consider filing a suspicious activity report under section 48 of this Act or a disclosure under sections 34 or 35 of the Prevention of Terrorism Act (Cap. 179), as applicable.
(4) Subsections (1) and (2) shall not apply to—
(a) an Attorney-at-Law in the course of ascertaining the legal position of his client or in defending or representing the client in, or concerning, legal proceedings, including advice on the institution or avoidance of proceedings;
(b) a reporting entity who has made a suspicious transaction report under section 48 of this Act or a disclosure under section 34 or 35 of the Prevention of Terrorism Act, (Cap. 179) to the extent that the reporting entity is acting—
(i) in the case of a suspicious transaction report, with the consent of the FIU; or
(ii) in the case of a disclosure under section 34 or 35 of the Prevention of Terrorism Act, (Cap. 179) with the consent of the Commissioner of Police.
(a) not carry out a transaction with or for the customer through a bank account;
(b) not establish a business relationship or carry out a one-off transaction with the customer;
(c) terminate any existing business relationship with the customer.
(2) Where a reporting entity is unable to undertake ongoing monitoring with respect to a business relationship, it shall terminate the business relationship.
(3) Where subsections (1) or (2) applies in relation to any customer, the reporting entity shall also consider filing a suspicious activity report under section 48 of this Act or a disclosure under sections 34 or 35 of the Prevention of Terrorism Act (Cap. 179), as applicable.
(4) Subsections (1) and (2) shall not apply to—
(a) an Attorney-at-Law in the course of ascertaining the legal position of his client or in defending or representing the client in, or concerning, legal proceedings, including advice on the institution or avoidance of proceedings;
(b) a reporting entity who has made a suspicious transaction report under section 48 of this Act or a disclosure under section 34 or 35 of the Prevention of Terrorism Act, (Cap. 179) to the extent that the reporting entity is acting—
(i) in the case of a suspicious transaction report, with the consent of the FIU; or
(ii) in the case of a disclosure under section 34 or 35 of the Prevention of Terrorism Act, (Cap. 179) with the consent of the Commissioner of Police.
Official source: Anti-Money Laundering and Countering the Financing of Terrorism Act (Cap. 251), Act 5 of 2020, Revised Edition as at 17 January 2025 (Acts 5 of 2020, 7 of 2021, 8 of 2021, 62 of 2021, 9 of 2022, 12 of 2024, S.I. 145 of 2020)
