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 (Section 39)
- Key Provision: Regulation 2 (Excluded precious products)
- Current Version: Current version as at 27 Mar 2026 (with a 2025 Revised Edition dated 17 Dec 2025)
- Original Citation Date: 10 Apr 2019 (SL 305/2019)
What Is This Legislation About?
The Precious Stones and Precious Metals (Excluded Precious Products) Regulations 2019 (“Excluded Precious Products Regulations”) are subsidiary legislation made under the Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019 (“PSPMPMLTFPFA”). In practical terms, these Regulations clarify that not everything involving precious stones or precious metals is treated as a “precious product” for the purposes of the main anti–money laundering and counter-terrorism financing regulatory framework.
In plain language, the Regulations carve out specific categories of goods that are not considered “precious products” under the Act. This matters because the Act’s regulatory obligations—such as licensing/registration, customer due diligence, record-keeping, and other compliance duties—generally attach to “precious products” as defined in the Act. If a product falls within an exclusion, businesses dealing with it may fall outside certain regulatory requirements that would otherwise apply.
Accordingly, the scope of these Regulations is narrow and targeted: they do not create a general licensing regime themselves. Instead, they operate as a definitional “boundary-setting” instrument, ensuring that certain industrial and medical categories are not swept into the precious products regime.
What Are the Key Provisions?
Regulation 1 (Citation) simply provides the short title: “Precious Stones and Precious Metals (Excluded Precious Products) Regulations 2019”. This is standard legislative housekeeping and does not affect substantive obligations.
Regulation 2 (Excluded precious products) is the core provision. It states that, for the purposes of the definition of “precious product” in section 2 of the Act, the following classes of products are not “precious products”:
(a) Any machinery, tool or equipment used for industrial purposes. This exclusion is designed to prevent industrial hardware that may incorporate or be made with precious metals or stones from being treated as a “precious product” subject to the Act’s precious-product compliance regime. The key practical question for lawyers and compliance teams is whether the item is genuinely “machinery, tool or equipment” and whether it is “used for industrial purposes.”
In applying this exclusion, practitioners should focus on the function and intended use of the item. For example, industrial cutting tools, manufacturing equipment, or industrial components that may contain precious materials but are used in production processes are more likely to fall within this exclusion. Conversely, items that are effectively sold as finished goods for consumer or ornamental purposes may be harder to characterise as “machinery, tool or equipment used for industrial purposes.” The exclusion is not limited to particular industries; it is framed by the nature of the item and its industrial use.
(b) Any medical device within the meaning given by item 1 of the First Schedule to the Health Products Act 2007. This exclusion links directly to the Health Products Act 2007 (“HPA”) and its First Schedule. The effect is that medical devices—defined by reference to the HPA—are excluded from the “precious product” definition under the PSPMPMLTFPFA framework.
For practitioners, the legal technique here is important: the Regulations do not attempt to restate the medical device definition. Instead, they incorporate by reference the meaning in the HPA. This means that classification will depend on how the HPA defines “medical device” in item 1 of the First Schedule. Practically, compliance teams should cross-check whether the product is regulated as a medical device under the HPA regime. If it is, it should generally be excluded from the precious products regime, even if it contains precious metals or stones.
Interaction with the Act’s definition of “precious product”. Although the extract provided does not reproduce the Act’s definition, Regulation 2 makes clear that the exclusions operate “for the purposes of the definition of ‘precious product’ in section 2 of the Act.” This indicates that the Act’s definition is broad enough to potentially capture categories of goods that include precious materials, and the Regulations narrow that scope by carving out specific classes. The consequence is that the compliance obligations under the Act should be assessed after applying these exclusions.
How Is This Legislation Structured?
The Excluded Precious Products Regulations are structured very simply. The document contains:
(i) Regulation 1 (Citation)—a short title provision.
(ii) Regulation 2 (Excluded precious products)—the substantive provision listing the excluded categories.
There are no additional parts or complex schedules in the extract. The Regulations function as a definitional add-on to the PSPMPMLTFPFA, and their legal effect is achieved entirely through the two exclusions listed in Regulation 2.
Who Does This Legislation Apply To?
These Regulations apply to persons and entities whose activities fall within the PSPMPMLTFPFA framework—particularly those dealing with goods that might otherwise be characterised as “precious products.” The Regulations do not impose obligations directly on their own; rather, they affect whether certain goods are treated as “precious products” for the Act’s purposes.
In practice, the Regulations are most relevant to: (1) dealers, traders, manufacturers, and distributors of goods involving precious stones or precious metals; (2) compliance officers and legal counsel advising on whether the Act’s regulatory regime applies; and (3) regulated entities that must determine the scope of their obligations based on product classification. If a product is excluded under Regulation 2, the Act’s precious-product compliance requirements may not apply to that product category.
Why Is This Legislation Important?
Although Regulation 2 is short, it is legally significant because it determines the boundary of regulatory coverage. In anti–money laundering and counter-terrorism financing regimes, scope is everything: obligations often attach to specific categories of products and activities. By excluding industrial machinery/tools/equipment and medical devices, the Regulations reduce the risk of over-inclusion—where businesses dealing with legitimate industrial or healthcare goods would otherwise be pulled into a precious-products compliance framework that may be unnecessary or disproportionate.
From a practitioner’s perspective, the Regulations are also important because they provide certainty through clear categories and a cross-reference to an established statutory definition (the HPA). This helps lawyers advise clients on product classification and reduces ambiguity. For example, a manufacturer selling industrial equipment containing precious metals can more confidently assess whether the item is excluded, provided it fits the “machinery, tool or equipment used for industrial purposes” description. Similarly, healthcare suppliers can rely on the HPA definition of medical devices to determine whether the exclusion applies.
Finally, the Regulations have practical enforcement implications. If regulators assess compliance under the PSPMPMLTFPFA, they will likely consider whether the relevant goods are “precious products.” Where an exclusion applies, enforcement actions premised on precious-product status may be inappropriate. Conversely, if a business incorrectly assumes an exclusion applies, it may face compliance failures. Therefore, careful legal classification—supported by product specifications, intended use, and regulatory status under the HPA where relevant—is essential.
Related Legislation
- Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019 (especially section 2 definition of “precious product” and section 39 authorising the making of these Regulations)
- Health Products Act 2007 (First Schedule, item 1—definition of “medical device” for purposes of Regulation 2(b))
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.