A new set of rules intended to better protect clients’ conveyancing money from misappropriation will take effect today.
Under the new rules, lawyers are no longer allowed to receive and hold their clients’ conveyancing money. Those who violate this new rule could face a penalty of up to S$50,000 or a maximum imprisonment of three years.
Currently, lawyers can hold conveyancing money via three methods. The first method involves the opening of a “conveyancing account” with the Ministry of Law’s designated banks — DBS Bank, Bank of China, United Overseas Bank, the Bank of East Asia and OCBC Bank.
Lawyers can also utilise the Singapore Academy of Law’s (SAL) conveyancing money service, while the final method involves holding the money through an escrow account jointly opened by lawyers of the buyer-seller.
Those using conveyancing accounts will have to add the “CVY” suffix to the payee’s name on their bank drafts, cashier’s orders and cheques. Payout or withdrawal from these accounts will require two-party authorisation.
To speed up the implementation of the new rules, the Singapore Land Authority had provided an electronic payment instruction service (ePI) system, which permits lawyers to electronically initiate and countersign payment instructions and for the authorised banks and SAL to process these transactions, said the Ministry.
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