s 38K Refusal to undergo quality control standards review or AML/CFT/CPF requirements review
38K.—(1) If an accounting entity refuses, without reasonable excuse (the burden of proof of which lies with the accounting entity), to undergo a quality control standards review or an AML/CFT/CPF requirements review as required by the Oversight Committee, the Oversight Committee may by order suspend the accounting entity from providing public accountancy services for a period not exceeding 2 years.[Act 24 of 2025 wef 06/05/2026] (2) If —(a) an individual practitioner of an accounting entity refuses to undergo an AML/CFT/CPF requirements review; and[Act 24 of 2025 wef 06/05/2026] (b) it is proved that his or her refusal was with the consent or connivance or was attributable to any neglect on the part of the accounting entity, the individual practitioner’s refusal is to be treated as a refusal by the accounting entity to undergo an AML/CFT/CPF requirements review under subsection (1). [Act 24 of 2025 wef 06/05/2026] (3) An order of the Oversight Committee under subsection (1) does not take effect until the latest of the following:(a) one month after the date the order has been served on the accounting entity; (b) the date specified by the Oversight Committee in the order as the date on which the order takes effect; (c) where an appeal against the order is made to the General Division of the High Court under subsection (4), the date immediately after the date the appeal has been determined or withdrawn. (4) Any accounting entity that is aggrieved by an order of the Oversight Committee under subsection (1) may appeal to the General Division of the High Court within a period of 30 days or within any further period that the General Division of the High Court may allow, after the order of the Oversight Committee has been served on the accounting entity. (5) The decision of the General Division of the High Court on an appeal under subsection (4) is final. (6) In this section, without limiting the expression, an accounting entity refuses to undergo a quality control standards review or an AML/CFT/CPF requirements review if the accounting entity —(a) expressly informs an entity reviewer, the Oversight Committee or the Authority that the accounting entity refuses to undergo the quality control standards review or the AML/CFT/CPF requirements review;[Act 24 of 2025 wef 06/05/2026] (b) refuses to permit an entity reviewer to enter, at any reasonable hours in the day for the purposes of carrying out the quality control standards review or the AML/CFT/CPF requirements review, its registered office or business premises;[Act 24 of 2025 wef 06/05/2026] (c) refuses to comply with a requirement of an entity reviewer made under section 38F(1)(a) or (b) within 14 days after the notice of the requirement has been served on the accounting entity; (d) refuses to permit an entity reviewer to inspect, examine or make copies of or take any abstract of or extract from any record or document produced under section 38F(1)(a) or (b); or (e) refuses, where a written notice requiring the accounting entity to undergo the quality control standards review or the AML/CFT/CPF requirements review has been served on the accounting entity under section 38D(3)(a), to respond to the notice within 14 days after the date the notice has been served or any longer period that the entity reviewer, the Oversight Committee or the Authority may allow.[Act 24 of 2025 wef 06/05/2026] (7) In this section, without limiting the expression, an individual practitioner of an accounting entity refuses to undergo an AML/CFT/CPF requirements review if the individual practitioner —(a) expressly informs an entity reviewer, the Oversight Committee or the Authority that the individual practitioner refuses to undergo the AML/CFT/CPF requirements review;[Act 24 of 2025 wef 06/05/2026] (b) refuses to permit an entity reviewer to enter, at any reasonable hours in the day for the purposes of carrying out the AML/CFT/CPF requirements review on the individual practitioner, the registered office or business premises of the accounting entity in which the individual practitioner practises as a public accountant;[Act 24 of 2025 wef 06/05/2026] (c) refuses to comply with a requirement of an entity reviewer made under section 38F(1)(a) or (b) (as applied by section 38F(2)) within 14 days after the notice has been served on the individual practitioner; (d) refuses to permit an entity reviewer to inspect, examine or make copies of or take any abstract of or extract from any record or document produced under section 38F(1)(a) or (b) (as applied by section 38F(2)); or (e) refuses, where a written notice requiring the individual practitioner to undergo the AML/CFT/CPF requirements review has been served on him or her under section 38D(4)(a), to respond to the notice within 14 days after the date the notice has been served or any longer period that the entity reviewer, the Oversight Committee or the Authority may allow.[Act 32 of 2022 wef 01/07/2023] [Act 24 of 2025 wef 06/05/2026]