Statute Details
- Title: Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Regulations 2019
- Act Code: PSPMPMLTFPFA2019-RG2
- Type: Subsidiary Legislation (SL)
- Authorising Act: Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019 (Section 39)
- Status: Current version (as at 27 Mar 2026)
- Revised Edition: 2025 Revised Edition (17 December 2025)
- Commencement Date: Not specified in the provided extract
- Parts: Part 1 (Preliminary); Part 2 (Customer Due Diligence and Other Measures); Part 3 (Registration of Regulated Dealers)
- Key Provisions (from extract): Section 2 (Definitions); Section 2A (Prescribed value for definition of precious product); Section 3 (Cash equivalent); Section 4 (Designated transaction); Section 4A (Transactions in prescribed circumstances); Sections 5–16 (CDD, EDD, SDD, monitoring, third-party reliance, records, risk controls, sanctions); Sections 17–23 (fees, registration period, notification duties, appeals, waiver/refund)
What Is This Legislation About?
The Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Regulations 2019 (“the Regulations”) are Singapore’s detailed compliance rules for businesses that deal in precious stones and precious metals. They sit under the Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019 (“the Act”) and translate the Act’s risk-based anti-money laundering/counter-terrorism financing/proliferation financing (AML/CTF/PF) framework into operational obligations.
In plain language, the Regulations require “regulated dealers” to identify and verify customers, understand the purpose and nature of transactions, monitor relationships, keep records, and apply enhanced safeguards for higher-risk situations—especially where politically-exposed persons (PEPs) or targeted financial sanctions may be involved. They also set out the mechanics for cash transaction reporting and the administrative regime for registration of regulated dealers.
Because precious stones and precious metals can be used to store and move value discreetly, the Regulations focus on customer due diligence (CDD) and transaction controls. They also address how regulated dealers should handle group structures, new technologies, and targeted financial sanctions. For practitioners, the Regulations are most useful as a “how-to” document: they define key terms and prescribe thresholds, forms, and procedural duties that determine whether a dealer’s compliance programme meets the legal standard.
What Are the Key Provisions?
1. Definitions and compliance vocabulary (Part 1)
The Regulations begin by defining critical concepts that drive the scope of obligations. For example, “beneficial owner” is defined in relation to an entity or legal arrangement as the individual who ultimately owns or controls it, exercises ultimate effective control, or on whose behalf the arrangement conducts transactions with a regulated dealer. This definition is central to CDD because it determines who must be identified and verified when a customer is not a natural person.
The Regulations also define “business relationship” broadly to include not only ongoing relationships but also a single transaction or designated transaction that the regulated dealer enters into or intends to enter into with a customer. This matters because monitoring and record-keeping obligations often attach to the existence of a business relationship, not merely to long-term accounts.
2. Identifying information and practical verification inputs
The Regulations define “identifying information” in a structured way, including full name (with aliases), date of birth (for individuals), address, contact number(s), nationality or place of incorporation/registration, identification numbers (with documentary categories), type of identification document, expiry date (if any), and occupation/business. This is a practitioner-friendly provision: it signals the minimum data fields that should be captured and retained for verification purposes.
Similarly, “place of business” and “close associate” (in relation to PEPs) are defined to ensure that compliance teams apply the correct geographic and relational reach. “Close associate” includes partners, persons accustomed or obligated to act according to a PEP’s directions, and persons with arrangements to act together. This expands the universe of persons who may trigger enhanced due diligence.
3. Prescribed transactions and thresholds (Sections 2A, 3, 4, 4A)
Although the extract does not reproduce the full text of Sections 2A, 3, 4, and 4A, their headings indicate that the Regulations prescribe: (i) a value threshold for the definition of “precious product” (Section 2A); (ii) what counts as a “cash equivalent” (Section 3); (iii) what constitutes a “designated transaction” (Section 4); and (iv) what “transactions in prescribed circumstances” require special treatment (Section 4A). These provisions are important because CDD and reporting duties often depend on whether a transaction falls within a defined category or exceeds a threshold.
For regulated dealers, the practical takeaway is that transaction classification is not optional. Compliance teams should map their product lines and transaction types to the statutory definitions and thresholds, and document the basis for classification decisions.
4. Customer due diligence and risk-based measures (Part 2, Sections 5–16)
Part 2 sets out the core CDD regime. The Regulations distinguish between CDD where the customer is an individual (Section 5) and where the customer is an entity or legal arrangement (Section 6). They also provide for enhanced customer due diligence (Section 7) and simplified customer due diligence (Section 8), reflecting a risk-based approach.
Enhanced due diligence is particularly relevant for higher-risk customers and circumstances, including politically-exposed persons and their close associates and family members (as defined in Part 1). Simplified due diligence may be available only where the risk is sufficiently low, and the dealer’s risk assessment supports that conclusion.
The Regulations also address ongoing monitoring (Section 11). This is a key compliance obligation: dealers must keep customer and transaction information under review to ensure that transactions remain consistent with the customer’s risk profile and the information obtained during CDD. In addition, Section 9 addresses CDD for existing customers, which is often where compliance programmes face operational challenges (e.g., legacy customers, incomplete records, or changes in risk profile).
Third-party reliance and records
Section 10 permits performance of CDD measures by third parties, subject to conditions. This is commonly used where dealers outsource certain verification steps. However, reliance does not remove the regulated dealer’s ultimate responsibility to ensure that CDD is properly performed and that the dealer can demonstrate compliance.
Section 13 requires keeping of records. Together with the definition of identifying information, this section supports auditability: a dealer should be able to produce evidence of what was collected, when it was collected, and how it was used to satisfy CDD obligations.
Risk assessment, internal controls, and sanctions (Sections 14, 14A, 15, 16)
Section 14 requires risk assessment and internal controls and procedures. This is the backbone of a compliant AML/CTF/PF programme: dealers must identify and assess their risks, implement controls to mitigate them, and put in place written procedures that staff can follow.
Section 14A addresses group policy for branches and subsidiaries. This is crucial for corporate groups operating across multiple locations: the Regulations require a coherent approach so that group-level standards are applied consistently, while still accounting for local risk.
Section 15 addresses “new technologies,” signalling that the Regulations anticipate technological developments that may affect customer identification, verification, or transaction monitoring. Section 16 then provides additional measures relating to targeted financial sanctions. In practice, this means that beyond general CDD, dealers must implement controls to detect and respond to sanctions risks in relation to customers, beneficial owners, and transactions.
5. Cash transaction reporting and submission mechanics (Section 12)
Section 12 governs the form, manner and time of submission of cash transaction reports. Even without the full text in the extract, the heading indicates that the Regulations prescribe procedural details. For practitioners, the compliance implication is clear: reporting is not merely a substantive obligation; it is also a technical one. Dealers should ensure their reporting systems meet the required format and timelines.
6. Registration of regulated dealers (Part 3, Sections 17–23)
Part 3 sets out the administrative framework for registration. Sections 17 and 18 deal with application and registration fees, respectively. Section 19 provides for the period of registration, while Section 20 imposes a duty to notify changes in place of business. Section 21 imposes a duty to notify the Registrar of changes in particulars and circumstances.
Section 21A refers to “prescribed events or circumstances” under Section 10(1A) of the Act, which likely expands the dealer’s notification or compliance triggers. Section 22 provides for an appeal to the Minister, and Section 23 provides for waiver and refund of fees. These provisions matter for regulated dealers because registration status and timely notifications can affect legal authorisation to carry on regulated dealing and intermediary activities.
How Is This Legislation Structured?
The Regulations are organised into three main parts. Part 1 (Preliminary) contains citation and definitions, including key terms such as beneficial owner, business relationship, close associate, family member, identifying information, and PEP-related concepts. It also includes provisions that prescribe thresholds and categories relevant to CDD and reporting (e.g., prescribed value for “precious product,” cash equivalent, designated transactions, and transactions in prescribed circumstances).
Part 2 (Customer Due Diligence and Other Measures) sets out the operational compliance duties: CDD for individuals and entities, enhanced and simplified CDD, CDD for existing customers, third-party reliance, ongoing monitoring, cash transaction reporting procedures, record-keeping, risk assessment and internal controls, group policy, new technologies, and targeted financial sanctions measures.
Part 3 (Registration of Regulated Dealers) addresses the administrative lifecycle of being a registered dealer: fees, registration duration, notification duties, appeals, and fee waivers/refunds.
Who Does This Legislation Apply To?
The Regulations apply to “regulated dealers” carrying on regulated dealing or acting as an intermediary for regulated dealing in relation to precious stones and precious metals. The scope is tied to the Act’s definitions and licensing/registration framework, and the Regulations supply the detailed compliance requirements that regulated dealers must meet.
In addition, the Regulations’ CDD obligations apply to “customers” of regulated dealers, including individuals and entities/legal arrangements. The beneficial owner concept means that dealers must look through corporate structures to identify the individuals who ultimately own or control the customer or on whose behalf transactions are conducted.
Why Is This Legislation Important?
For practitioners, the Regulations are important because they operationalise Singapore’s AML/CTF/PF expectations for a high-risk sector. Precious stones and precious metals can be used to launder proceeds or facilitate illicit finance through value transfer, complex ownership structures, and cross-border movement. The Regulations therefore require dealers to implement robust customer identification and verification, risk assessment, and monitoring.
From an enforcement and litigation perspective, the Regulations also provide evidentiary structure. Defined terms such as “identifying information” and “beneficial owner” reduce ambiguity about what compliance evidence should exist. Record-keeping duties and reporting mechanics create a compliance trail that regulators can test.
Finally, the registration and notification provisions in Part 3 affect ongoing authorisation and regulatory standing. A dealer’s failure to notify changes in place of business or particulars may create regulatory risk beyond substantive AML/CTF/PF failures. Accordingly, compliance teams should treat these Regulations as both a substantive and administrative compliance instrument.
Related Legislation
- Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019
- Payment Services Act 2019 (noted in the provided metadata as related)
- Monetary Authority of Singapore Act 1970 (definition of “Monetary Authority of Singapore” in the Regulations)
Source Documents
This article provides an overview of the Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Regulations 2019 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.