Statute Details
- Title: Precious Stones and Precious Metals (Exempt Persons) Order 2019
- Act Code: PSPMPMLTFPFA2019-OR1
- Legislation Type: Subsidiary legislation (SL)
- Authorising Act: Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019
- Citation: Order made on 10 April 2019 (SL 307/2019)
- Current Version: 2025 Revised Edition (17 December 2025), current as at 27 March 2026
- Key Provisions: Section 2 (definitions), Section 3 (exemption for financial institutions), Section 4 (exemption for foreign dealers)
What Is This Legislation About?
The Precious Stones and Precious Metals (Exempt Persons) Order 2019 (“Exempt Persons Order”) is a Singapore subsidiary instrument that creates targeted exemptions from certain obligations under the Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019 (“PMPMLTFPFA”). In plain terms, it identifies particular categories of regulated participants—namely financial institutions and certain foreign dealers—who are not required to comply with specified parts of the Act, because their anti-money laundering/terrorism financing/proliferation financing (AML/CFT/CPF) responsibilities are already addressed through other regulatory frameworks or are limited by the nature of their presence in Singapore.
The Order is best understood as a “carve-out” mechanism. It does not repeal the AML/CFT/CPF regime for the precious stones and precious metals sector. Instead, it calibrates the application of the Act by exempting defined persons from particular provisions. This approach helps avoid duplicative compliance burdens while maintaining the overall policy objective of preventing money laundering, terrorism financing, and proliferation financing through the precious stones and precious metals industry.
Practically, the Exempt Persons Order matters to compliance officers, legal counsel, and regulated entities because it affects which statutory duties apply. For example, if a person qualifies for an exemption, they may be relieved from certain requirements in Part 2 of the Act and from specified sections (including key operational obligations). Conversely, if the exemption does not apply—because the entity does not meet the definition of “foreign dealer” or does not operate “on a transitory basis”—then the full compliance regime may apply.
What Are the Key Provisions?
1. Definitions (Section 2)
The Order’s central definitional work is done in Section 2, which defines “foreign dealer”. A “foreign dealer” is a regulated dealer that satisfies two cumulative conditions:
- Registration/incorporation or residence outside Singapore: the regulated dealer is either (i) registered or incorporated outside Singapore (for a body corporate or unincorporate), or (ii) habitually resident outside Singapore (for an individual).
- No Singapore permanent presence for regulated dealing/intermediation: the foreign dealer does not have a permanent establishment, a place of management, or a branch in Singapore at which it carries on the business of regulated dealing or business as an intermediary for regulated dealing.
This definition is significant because it draws a line between foreign businesses that are effectively “present” in Singapore through a meaningful operational footprint (e.g., a branch or place of management) and those that are genuinely external to Singapore’s territory for the regulated activity. The exemption regime in Section 4 is built on this definition.
2. Exemption for financial institutions (Section 3)
Section 3 provides a broad exemption for “every financial institution” that carries on a business of regulated dealing, or business as an intermediary for regulated dealing, in Singapore. The exemption is from:
- Part 2 of the Act; and
- Sections 16, 17(3), 18, 19, 20 and 21 of the Act.
In effect, if an entity qualifies as a “financial institution” and is carrying on the relevant business in Singapore, it is exempt from a substantial portion of the PMPMLTFPFA’s obligations. While the extract provided does not reproduce the content of those provisions, the legal significance is clear: Part 2 and the listed sections likely contain core compliance duties (for example, customer due diligence, record-keeping, reporting, internal controls, and related operational requirements). The exemption suggests that financial institutions are expected to comply with AML/CFT/CPF obligations under other Singapore financial regulatory regimes, making duplication unnecessary.
For practitioners, the key question becomes factual and legal: does the entity fall within the statutory meaning of “financial institution” under the PMPMLTFPFA (or related definitions)? If yes, and the entity carries on the specified business in Singapore, the exemption is triggered. If not, the entity may remain fully subject to the Act.
3. Exemption for foreign dealers (Section 4)
Section 4 creates a more nuanced exemption for foreign dealers. It distinguishes between foreign dealers carrying on business in Singapore “on a transitory basis” and those who do not.
Section 4(1) provides that a foreign dealer carrying on business in Singapore on a transitory basis is exempt from:
- Part 2 of the Act; and
- Section 19 of the Act.
Section 4(2) defines “transitory basis” by reference to time: a foreign dealer carries on business in Singapore on a transitory basis if it carries on business in Singapore for not more than a total of 90 days in a year.
This is a critical compliance threshold. The exemption is not merely about being foreign or lacking a permanent establishment; it also depends on the duration of the dealer’s business activity in Singapore. If the dealer exceeds 90 days in a year, the exemption would not apply, and the dealer would likely be subject to the Act’s obligations (including those in Part 2 and Section 19, which would then become applicable).
4. Interaction between the definition and the exemption
Although Section 4’s exemption is framed around “foreign dealers” and “transitory basis”, the definition of “foreign dealer” in Section 2 is a gatekeeper. A regulated dealer must be (i) incorporated/registered outside Singapore or habitually resident outside Singapore, and (ii) lack a permanent establishment, place of management, or branch in Singapore where it carries on regulated dealing/intermediation. Only then does the time-based transitory test matter.
Accordingly, a practitioner advising a foreign dealer should assess both elements: (a) whether the dealer has any Singapore operational footprint that would negate “foreign dealer” status, and (b) how many days the dealer carries on business in Singapore within the relevant year. The exemption is therefore a two-step analysis rather than a single criterion.
How Is This Legislation Structured?
The Exempt Persons Order is short and structured around a simple architecture:
- Section 1 (Citation): identifies the Order by name.
- Section 2 (Definitions): defines “foreign dealer” for the purposes of the Order.
- Section 3 (Exemption for financial institutions): grants an exemption from Part 2 and specified sections (16, 17(3), 18, 19, 20, 21) for financial institutions carrying on the relevant business in Singapore.
- Section 4 (Exemption for foreign dealers): grants an exemption from Part 2 and Section 19 for foreign dealers carrying on business in Singapore on a transitory basis, with “transitory basis” defined as not more than 90 days in a year.
Because the Order is an exemption instrument, it does not create new substantive AML/CFT/CPF duties. Instead, it modifies the reach of the PMPMLTFPFA by specifying which persons are relieved from which provisions.
Who Does This Legislation Apply To?
The Order applies to persons who are within the scope of the PMPMLTFPFA’s regulated dealing/intermediation framework, specifically those who carry on business of regulated dealing or business as an intermediary for regulated dealing in Singapore. It then further narrows the exemption recipients into two categories: (1) financial institutions, and (2) foreign dealers meeting the definition and transitory criteria.
For financial institutions, the exemption is triggered by the combination of (i) being a “financial institution” and (ii) carrying on the relevant business in Singapore. For foreign dealers, the exemption is triggered only if the entity qualifies as a “foreign dealer” (as defined) and carries on business in Singapore for not more than 90 days in a year. Entities that do not meet these criteria should assume the PMPMLTFPFA obligations apply without the benefit of these exemptions.
Why Is This Legislation Important?
This Order is important because it directly affects compliance obligations in a high-risk sector. Precious stones and precious metals can be vulnerable to money laundering and related financial crimes due to their value density, cross-border movement, and the complexity of ownership and transaction structures. The PMPMLTFPFA establishes a regulatory framework to mitigate these risks. The Exempt Persons Order, however, recognises that not all participants require identical statutory obligations—particularly where other regulatory regimes already impose comparable duties or where the entity’s presence in Singapore is limited.
From an enforcement and risk-management perspective, the exemptions reduce duplicative regulation but also create legal boundaries that must be carefully managed. A misclassification—such as treating a non-qualifying foreign dealer as exempt, or failing to track whether the 90-day threshold is exceeded—could lead to regulatory breach. Practitioners should therefore advise clients to document the basis for exemption claims, including evidence supporting foreign status, absence of Singapore permanent establishment/place of management/branch, and day-count calculations for “transitory” activity.
Finally, the Order has practical implications for structuring market entry and operations. Foreign dealers may design their Singapore engagement to remain within the transitory threshold and avoid establishing a permanent establishment or branch. Financial institutions, meanwhile, can rely on the exemption to streamline compliance processes, but they should still ensure that their overall AML/CFT/CPF obligations under other applicable regimes are met.
Related Legislation
- Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019 (authorising Act; particularly Part 2 and sections 16, 17(3), 18, 19, 20 and 21 referenced in the Order)
Source Documents
This article provides an overview of the Precious Stones and Precious Metals (Exempt Persons) Order 2019 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.