Statute Details
- Title: Precious Stones and Precious Metals (Composition of Offences) Regulations 2019
- Act Code: PSPMPMLTFPFA2019-RG3
- Legislative Type: Subsidiary legislation (SL)
- Status: Current version as at 27 Mar 2026
- Authorising Act: Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019
- Authorising Provision: Section 39 of the Act
- Key Provision: Regulation 2 (Compoundable offences)
- Original Citation: 9 Oct 2019 (SL 678/2019)
- Amendment: 20 Dec 2024 (S 984/2024)
- Revised Edition: 17 Dec 2025 (2025 RevEd)
What Is This Legislation About?
The Precious Stones and Precious Metals (Composition of Offences) Regulations 2019 (“Composition Regulations”) set out which offences under the broader precious stones and precious metals anti–money laundering and counter–terrorism financing framework may be “compounded” by the Registrar. In plain language, compounding is an administrative mechanism that allows certain alleged offences to be resolved without going through the full criminal prosecution process, provided the statutory conditions are met.
This matters in practice because the precious stones and precious metals sector is heavily regulated, and compliance failures can lead to criminal liability. The composition regime provides a structured, predictable pathway for dealing with specified offences—often those that are less severe than others or are suitable for resolution through payment of a composition sum. For lawyers advising regulated entities, compliance teams, or individuals, the Regulations are therefore a key procedural instrument: they determine whether a matter can be settled early and how the Registrar’s discretion is triggered.
Importantly, the Regulations do not create new substantive offences. Instead, they operate alongside the Act and the main operational regulations (including the Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Regulations 2019). Their function is to identify the particular offences that qualify for compounding under section 31 of the Act.
What Are the Key Provisions?
1. Regulation 1: Citation
Regulation 1 simply states the short title of the instrument: the Precious Stones and Precious Metals (Composition of Offences) Regulations 2019. While not substantive, citation provisions are important for correct referencing in charging documents, correspondence, and legal submissions.
2. Regulation 2: Compoundable offences
Regulation 2 is the core provision. It specifies a list of offences—subject to an important limitation—that “may be compounded by the Registrar” in accordance with section 31 of the Act. The wording “may be compounded” indicates that compounding is discretionary rather than automatic. The Registrar must decide whether compounding is appropriate in the circumstances, consistent with the Act’s framework.
2(a) Offences under the Act that may be compounded
Under Regulation 2(a), the following offences under the Act are compoundable (provided they are not continuing offences): offences under sections 6(2), 16(6), 17(4), 18(5), 19(3), 21(3), and 27 of the Act. Each of these provisions corresponds to particular compliance or regulatory duties within the Act’s scheme. Although the extract provided does not reproduce the underlying section text, the legal significance is clear: Parliament has identified these specific Act offences as suitable for resolution by composition.
2(b) Offences under the main Regulations that may be compounded
Regulation 2(b) extends the compounding regime to offences under the Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Regulations 2019. Specifically, it includes offences under regulation 20(4) and regulation 21(4) of those Regulations. This is a common legislative pattern: the composition regulations “bridge” the Act and the operational regulations by selecting certain contraventions for administrative settlement.
3. The “other than a continuing offence” limitation
A critical qualifier appears at the start of Regulation 2: the listed offences are compoundable “other than a continuing offence.” This means that if the alleged offence is continuing in nature—i.e., it persists over time due to ongoing non-compliance—compounding may not be available. For practitioners, this is a major issue in case assessment. Determining whether conduct is continuing often requires careful factual analysis and legal characterisation. If the conduct is ongoing (for example, repeated or sustained failure to comply with regulatory obligations), the Registrar’s ability to compound may be constrained, and prosecution risk may remain.
4. Link to section 31 of the Act
Regulation 2 expressly ties compounding to section 31 of the Act. While the extract does not set out section 31, the legal effect is that the composition process is governed by the Act’s procedural and substantive conditions—such as the Registrar’s authority, the composition sum (if specified), and the consequences of compounding (including whether it extinguishes criminal liability). Practitioners should therefore treat Regulation 2 as a gateway provision: it identifies which offences can be considered for compounding, but the “how” is determined by the Act.
How Is This Legislation Structured?
The Composition Regulations are extremely concise. Based on the extract, the instrument contains:
(i) Regulation 1 (Citation)—a standard provision identifying the name of the Regulations.
(ii) Regulation 2 (Compoundable offences)—the operative provision listing the specific offences that may be compounded by the Registrar under section 31 of the Act. Regulation 2 is structured in two main limbs: offences under specified sections of the Act, and offences under specified regulations of the main operational regulations.
There are no additional parts or detailed procedural schedules in the extract. Practically, this means that most procedural questions—eligibility criteria, the process for applying or offering compounding, payment mechanics, and legal consequences—are found in the Act itself rather than in these Regulations.
Who Does This Legislation Apply To?
The Composition Regulations apply to matters involving offences under the Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019 and the related operational regulations. In practice, this will typically concern regulated persons and entities within the precious stones and precious metals sector, as well as individuals who may be charged for contraventions attributable to them under the Act or regulations.
However, the Regulations are not addressed to the regulated community directly in terms of compliance duties. Instead, they govern the enforcement outcome—specifically, which offences can be resolved by compounding. Therefore, the primary “audience” for the Regulations is legal counsel and compliance officers managing potential enforcement actions, as well as the Registrar who exercises the compounding power under the Act.
Why Is This Legislation Important?
1. It provides a settlement pathway and reduces prosecution uncertainty
For practitioners, the most immediate value of the Composition Regulations is that they clarify which offences are eligible for compounding. This can materially affect strategy. Where an offence falls within the listed categories and is not a continuing offence, compounding may offer a faster, less resource-intensive resolution than full criminal proceedings. It can also reduce reputational harm and allow businesses to move forward with remediation.
2. It shapes enforcement discretion through a defined list
Although compounding is discretionary (“may be compounded”), the Regulations constrain discretion by identifying the offences that qualify. This helps ensure consistency and predictability in enforcement. Lawyers can advise clients with greater confidence about whether a matter is “compoundable in principle,” subject to the Registrar’s assessment under section 31 of the Act.
3. The “continuing offence” limitation is a key risk factor
The “other than a continuing offence” qualifier is particularly important. Many compliance failures in regulated industries can be characterised as ongoing if they reflect persistent non-compliance. Practitioners should therefore evaluate the timeline of conduct, whether remedial steps were taken, and whether the alleged contravention is best described as a one-off breach or a continuing state of non-compliance. This characterisation can determine whether compounding is available at all.
4. It integrates the Act and the operational regulations
By including offences under both the Act (sections 6(2), 16(6), 17(4), 18(5), 19(3), 21(3), 27) and the operational regulations (regulations 20(4) and 21(4)), the Regulations ensure that compounding is not limited to Act offences alone. This integration is practical: enforcement often arises from breaches of operational requirements, and the composition regime must therefore cover those contraventions as well.
Related Legislation
- Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019 (authorising Act; compounding framework referenced in section 31; authorisation referenced in section 39)
- Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Regulations 2019 (operational regulations; compounding-relevant offences include regulations 20(4) and 21(4))
Source Documents
This article provides an overview of the Precious Stones and Precious Metals (Composition of Offences) Regulations 2019 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.