AML/CFT Regulatory Framework for Precious Stones and Precious Metals Dealers (PSMD) in Singapore

Download AML/CFT Regulatory Framework for Precious Stones and Precious Metals Dealers (PSMD) in Singapore

AML/CFT Regulatory Framework for Precious Stones and Precious Metals Dealers (PSMD) in Singapore

Singapore has a very stringent AML/CFT regulatory framework for Precious Stones and Precious Metals Dealers (PSMD). Singapore’s primary legislation to combat money laundering is the CDSA, and all regulated dealers must follow the regulatory requirements.

What is a regulated dealer?

A regulated dealer is defined as a person who carries on a business of regulated dealing or business as an intermediary for regulated dealing.

What is a regulated dealer?

A regulated dealing is defined as any of the following activities:

  1. manufacturing any precious stone, precious metal or precious product;
  2. importing or possessing for sale any precious stone, precious metal or precious product;
  3. selling or offering for sale any precious stone, precious metal or precious product;
  4. selling or redeeming asset-backed tokens;
  5. purchasing any precious stone, precious metal or precious product for the purposes of resale.

The Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019 (“PSPM Act”) establishes the regulatory regime for PSMDs in Singapore and defines the scope of regulated dealing.

The Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Regulations 2019 (“PMLTF Regulations”) set out the specific requirements for regulated dealers in Singapore.

Terrorism (Suppression of Financing) Act 2002 was enacted to suppress the financing of terrorism and to give effect to the International Convention for the Suppression of the Financing of Terrorism and for matters connected to that.

United Nations Act 2001 enables Singapore to fulfil its obligations respecting Article 41 of the Charter of the United Nations.

Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act provides for the confiscation of benefits derived from, and to combat, corruption, drug dealing and other serious crimes and for purposes connected therewith.