Statute Details
- Title: Precious Stones and Precious Metals (Excluded Precious Products) Regulations 2019
- Act Code: PSPMPMLTFPFA2019-RG1
- Legislation Type: Subsidiary legislation (SL)
- Authorising Act: Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019
- Relevant Authorising Provision: Section 39 of the Act
- Legislative Instrument Citation: SL 305/2019
- Original Date: 10 April 2019
- Current Version (as provided): 2025 Revised Edition (17 December 2025); status shown as current version as at 27 March 2026
- Key Provision(s) in Extract: Section 2 (Excluded precious products)
What Is This Legislation About?
The Precious Stones and Precious Metals (Excluded Precious Products) Regulations 2019 (“Excluded Precious Products Regulations”) are subsidiary rules made under the Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019 (“PSPMPMLTFP Act”). In plain language, the Regulations clarify that certain categories of goods are not treated as “precious products” for the purposes of the anti-money laundering, counter-terrorism financing, and counter-proliferation financing (AML/CFT/CPF) regulatory framework.
This matters because the PSPMPMLTFP Act imposes compliance obligations on persons and businesses that deal in “precious products” (as defined in the Act). If a product falls within the definition, regulated entities may need to implement customer due diligence, record-keeping, reporting, and other controls. Conversely, if a product is excluded, the product is outside the scope of the “precious product” regime, reducing or eliminating certain regulatory duties that would otherwise attach.
Accordingly, the Regulations operate as a scope-limiting instrument. They do not create a new compliance regime from scratch; rather, they carve out specific classes of goods from the definition of “precious product” in section 2 of the Act. The extract provided shows that the exclusion is narrow and targeted: it covers industrial equipment and certain medical devices.
What Are the Key Provisions?
1. Section 1: Citation
Section 1 provides the short title of the Regulations. This is standard legislative drafting and is mainly relevant for referencing the instrument in legal documents, compliance policies, and regulatory correspondence.
2. Section 2: Excluded precious products
Section 2 is the substantive provision in the extract. It states that, for the purposes of the definition of “precious product” in section 2 of the PSPMPMLTFP Act, the following classes of products are not “precious products”:
(a) Any machinery, tool or equipment used for industrial purposes
This exclusion covers machinery, tools, and equipment that are used for industrial purposes. The legal effect is that even if such industrial equipment contains or incorporates precious stones or precious metals (for example, components made with precious metals for durability, conductivity, or specialised performance), the equipment itself is excluded from the “precious product” definition for AML/CFT/CPF purposes.
For practitioners, the key interpretive question is how to determine whether the item is truly “machinery, tool or equipment” and whether it is “used for industrial purposes.” In practice, this will often depend on the item’s function, design, and intended use. Evidence may include technical specifications, manufacturer documentation, end-user statements, and commercial context (e.g., sale to industrial operators rather than retail consumers). The exclusion is likely intended to avoid capturing ordinary industrial supply chains where the precious content is incidental to industrial functionality rather than being traded as a precious commodity.
(b) Any medical device within the meaning given by item 1 of the First Schedule to the Health Products Act 2007
Section 2(b) excludes “any medical device” as defined by item 1 of the First Schedule to the Health Products Act 2007. This is a cross-reference to another statutory regime. The effect is that medical devices—again, even if they incorporate precious materials—are not treated as “precious products” under the PSPMPMLTFP Act’s definition.
From a compliance perspective, this cross-referenced exclusion is significant because it ties the scope of the precious products regime to the established regulatory classification of medical devices under the Health Products Act 2007. Practitioners should therefore assess whether the product is properly characterised as a “medical device” under that First Schedule definition. Where classification is uncertain, regulatory guidance, product registration status, and documentation used for health product compliance may be relevant.
Practical implications of the exclusions
Because the Regulations exclude specific categories of goods from the “precious product” definition, they can affect whether a business is a “regulated person” (or otherwise subject to obligations) under the PSPMPMLTFP Act. For example, a company that sells industrial equipment or medical devices may not be required to treat those items as “precious products” for AML/CFT/CPF compliance—provided the products fall squarely within the exclusions.
However, the exclusions do not necessarily mean that all dealings involving precious stones or precious metals are outside the Act. If a business trades in goods that are not “machinery, tool or equipment used for industrial purposes” or are not “medical devices” within the Health Products Act definition, the goods may still be “precious products” and therefore subject to the Act. The Regulations therefore require careful product-by-product and transaction-by-transaction analysis.
How Is This Legislation Structured?
The Excluded Precious Products Regulations are structured as a short instrument with a minimal number of sections. Based on the extract and the legislative interface shown, the Regulations contain:
Section 1 (Citation) — establishes the short title of the Regulations.
Section 2 (Excluded precious products) — sets out the two classes of products excluded from the “precious product” definition in the PSPMPMLTFP Act: (a) industrial machinery/tools/equipment, and (b) medical devices as defined under the Health Products Act 2007.
There are no additional parts or detailed procedural provisions shown in the extract. The Regulations function primarily as a definitional scope tool rather than an operational compliance manual.
Who Does This Legislation Apply To?
Although the Regulations themselves are short, their effect is felt by businesses and professionals whose activities might otherwise fall within the PSPMPMLTFP Act’s “precious product” framework. In practical terms, the Regulations apply to persons who deal in goods that could be argued to contain precious stones or precious metals, because the exclusions determine whether those goods are treated as “precious products” for AML/CFT/CPF purposes.
The exclusions are particularly relevant to:
(1) Industrial suppliers and manufacturers that sell machinery, tools, or equipment used for industrial purposes; and
(2) Medical device manufacturers, distributors, and importers that sell medical devices regulated under the Health Products Act 2007.
That said, the exclusions are not blanket exemptions for entire businesses. They operate at the level of product classification. A company may sell both excluded items (industrial equipment or medical devices) and non-excluded items (e.g., jewellery, precious stones, or precious metal products traded as commodities). In such cases, the company may need to apply different compliance treatment to different product lines.
Why Is This Legislation Important?
These Regulations are important because they prevent overreach in the AML/CFT/CPF regulatory scheme. Without exclusions, the definition of “precious product” could potentially capture a wide range of goods where precious materials are used as components rather than being traded as precious commodities. That could impose disproportionate compliance burdens on industrial and healthcare sectors.
For legal practitioners advising regulated entities, the Regulations provide a clear statutory basis to argue that certain categories of goods are outside the “precious product” definition. This can be crucial in:
(1) Regulatory risk assessments — determining whether a client’s product portfolio triggers AML/CFT/CPF obligations under the PSPMPMLTFP Act;
(2) Transaction structuring — ensuring that contractual descriptions, product specifications, and documentation align with the statutory exclusions;
(3) Compliance programme design — tailoring customer due diligence and reporting workflows to the correct product categories; and
(4) Audit and enforcement responses — defending the classification of products during internal reviews or regulatory inquiries.
From an enforcement perspective, the exclusions also help regulators focus resources on transactions that are more likely to involve precious commodities used for illicit finance. Industrial equipment and medical devices may still be relevant in broader compliance contexts, but the Regulations indicate that Parliament intended a narrower AML/CFT/CPF focus for the precious stones and precious metals regime.
Related Legislation
- Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019 (especially the definition of “precious product” in section 2 and the regulation-making power in section 39)
- Health Products Act 2007 (especially the First Schedule, item 1 defining “medical device”)
Source Documents
This article provides an overview of the Precious Stones and Precious Metals (Excluded Precious Products) Regulations 2019 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.