Statute Details
- Title: Precious Stones and Precious Metals (Exempt Persons) Order 2019
- Act Code: PSPMPMLTFPFA2019-OR1
- Legislative Type: Subsidiary legislation (SL)
- Authorising Act: Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019
- Authorising Provision: Section 38 of the Act
- Current Version: 2025 Revised Edition (17 December 2025)
- Original Citation Date: 10 April 2019 (SL 307/2019)
- Amendment: Amended by S 991/2020 (14 December 2020)
- 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 made under the Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019 (“PSPMP Act”). In plain language, it identifies certain categories of persons who are exempt from specified AML/CFT/CPF obligations under the PSPMP Act.
Singapore’s precious stones and precious metals sector is regulated because the movement, trading, and intermediation of high-value commodities can be vulnerable to money laundering, terrorism financing, and proliferation financing. The PSPMP Act establishes compliance duties for “regulated persons” engaged in regulated dealing and regulated intermediation. However, the Exempt Persons Order recognises that some entities—because of their existing regulatory status or limited operational footprint in Singapore—may not need to be subject to the full suite of provisions in the PSPMP Act.
Accordingly, the Order creates two main exemption pathways: (1) exemptions for “financial institutions” carrying on regulated dealing or intermediary business in Singapore; and (2) exemptions for “foreign dealers” carrying on such business in Singapore on a transitory basis (defined by a 90-day annual threshold). The practical effect is that exempt persons are relieved from certain parts of the PSPMP Act, while still operating within a broader regulatory framework.
What Are the Key Provisions?
Section 2: Definitions sets the foundation for the exemptions. The most important defined term for practitioners is “foreign dealer”. A “foreign dealer” is a regulated dealer that (a) is registered or incorporated outside Singapore (for bodies corporate or unincorporate) or habitually resident outside Singapore (for individuals), and (b) does not have a permanent establishment, place of management, or branch in Singapore where the regulated dealer carries on regulated dealing or intermediary business. This definition is crucial because it determines whether a person can even qualify for the foreign dealer exemption in Section 4.
From a compliance perspective, the definition is not merely about where the dealer is incorporated or resident. It also focuses on whether the dealer has a Singapore “presence” of the kind that would indicate ongoing operations (permanent establishment, place of management, or a branch). If such a presence exists, the dealer may fall outside the “foreign dealer” category and therefore may not benefit from the transitory exemption.
Section 3: Exemption for financial institutions provides that every financial institution carrying on a business of regulated dealing, or business as an intermediary for regulated dealing, in Singapore is exempt from (a) Part 2 of the Act and (b) sections 16, 17(3), 18, 19, 20 and 21 of the Act.
This is a targeted exemption. It does not necessarily remove all obligations under the PSPMP Act; rather, it removes the specified parts and sections. Practitioners should therefore treat the exemption as a “carve-out” from particular statutory requirements, not as a blanket statement that exempt persons have no AML/CTF/CPF duties. The exempted provisions likely correspond to the core operational obligations in Part 2 and certain enumerated sections (including, by implication, duties that may already be addressed through other regulatory regimes applicable to financial institutions). The legal significance is that the PSPMP Act’s compliance architecture is not applied uniformly to all regulated actors; instead, it is calibrated to avoid duplicative or unnecessary obligations where other frameworks already impose comparable standards.
Section 4: Exemption for foreign dealers is the second major exemption mechanism. Section 4(1) provides that a foreign dealer carrying on a business of regulated dealing, or business as an intermediary for regulated dealing, in Singapore on a transitory basis is exempt from (a) Part 2 of the Act and (b) section 19 of the Act.
Section 4(2) defines “transitory basis” as carrying on business in Singapore for not more than a total of 90 days in a year. This temporal threshold is the key compliance trigger. If the foreign dealer’s activities in Singapore exceed 90 days in a year, the transitory exemption would not apply, and the dealer would need to consider whether it is subject to the PSPMP Act’s requirements (including those in Part 2 and section 19, which are specifically exempted only when the transitory condition is met).
Practically, the 90-day rule raises evidential and operational questions: what counts as a “day” of carrying on business in Singapore; how to track days spent by personnel; whether days of negotiation, meetings, or shipment-related activities count; and how to document the basis for the calculation. While the extract does not provide further interpretive guidance, lawyers advising foreign dealers should anticipate that regulators may require clear records demonstrating the basis for the transitory calculation and the absence of a permanent establishment, place of management, or branch.
How Is This Legislation Structured?
The Exempt Persons Order is concise and structured around a small number of operative provisions. It contains:
Section 1 (Citation), which identifies the instrument.
Section 2 (Definitions), which defines “foreign dealer” for the purposes of the Order.
Section 3 (Exemption for financial institutions), which grants exemptions to financial institutions carrying on regulated dealing or intermediary business in Singapore, specifying the exact parts and sections of the PSPMP Act from which they are exempt.
Section 4 (Exemption for foreign dealers), which grants exemptions to foreign dealers carrying on such business in Singapore on a transitory basis, again specifying the exact parts and sections exempted and defining the transitory condition through the 90-day annual limit.
Notably, the Order does not create new compliance duties; it operates by carving out defined categories of persons from specified statutory obligations under the PSPMP Act. This structure means that practitioners must read the Order together with the PSPMP Act to understand what obligations remain for exempt persons.
Who Does This Legislation Apply To?
The exemptions apply to persons who fall within the defined categories and who carry on the relevant activities in Singapore. For financial institutions, the exemption applies to “every financial institution” that carries on a business of regulated dealing or intermediary business for regulated dealing in Singapore. The Order does not, in the extract provided, define “financial institution” or specify which licensing or regulatory status qualifies; therefore, practitioners must consult the PSPMP Act (and any related definitions within it) to determine the scope of “financial institution”.
For foreign dealers, the exemption applies only if the dealer is (1) a regulated dealer registered/incorporated outside Singapore or habitually resident outside Singapore, and (2) does not have a permanent establishment, place of management, or branch in Singapore where it carries on the regulated dealing or intermediary business. In addition, the dealer must carry on business in Singapore on a transitory basis—meaning not more than 90 days in a year.
In practical terms, the Order is most relevant to cross-border market participants and regulated entities that may already be subject to other AML/CFT/CPF regimes. It is also relevant to compliance teams tasked with determining whether a given entity’s activities in Singapore trigger the PSPMP Act’s obligations or whether an exemption can be relied upon.
Why Is This Legislation Important?
The Exempt Persons Order is important because it shapes the compliance landscape for the precious stones and precious metals sector. By granting exemptions, it reduces regulatory burden for certain actors while maintaining the overall objective of preventing money laundering, terrorism financing, and proliferation financing. For lawyers, the Order is a critical interpretive tool: it tells you which statutory obligations under the PSPMP Act do not apply to particular categories of persons.
From an enforcement and risk perspective, exemptions can be a double-edged sword. If an entity incorrectly claims exemption—e.g., by misclassifying itself as a “foreign dealer” despite having a branch or place of management in Singapore, or by exceeding the 90-day threshold—the entity could be exposed to regulatory action for non-compliance with obligations that should have applied. Therefore, the Order’s conditions must be assessed carefully and supported with documentary evidence.
For practitioners advising clients, the key value of this Order lies in its specificity. It does not simply say “exempt from the Act”; it identifies the precise parts and sections exempted. This allows counsel to map remaining obligations under the PSPMP Act and to design compliance policies accordingly. For example, if Part 2 is exempted, counsel must still check whether other sections outside Part 2 impose duties that remain applicable. Similarly, where only section 19 is exempted for foreign dealers, counsel should identify what section 19 requires and ensure that any non-exempt obligations are met.
Related Legislation
- Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019 (authorising Act; includes 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.