Statute Details
- Title: Terrorism (Suppression of Financing) (Exemption from Prohibition against Dealing) (No. 5) Order 2008
- Act Code: TSFA2002-S296-2008
- Legislative Type: Subsidiary Legislation (Order)
- Authorising Act: Terrorism (Suppression of Financing) Act (Cap. 325), specifically powers under section 7(1)
- Related Legislation: Internal Security Act (Cap. 143); United Nations Act (Cap. 339)
- Singapore Legal Instrument Number: SL 296/2008 (No. S 296)
- Citation: Terrorism (Suppression of Financing) (Exemption from Prohibition against Dealing) (No. 5) Order 2008
- Commencement: 10 June 2008
- Status: Current version as at 27 Mar 2026
- Key Provisions in the Extract: Sections 1 (Citation and commencement), 2 (Definition of “specified person”), 3 (Exemption)
What Is This Legislation About?
This Order is a targeted exemption instrument made under Singapore’s Terrorism (Suppression of Financing) legal framework. In plain terms, it addresses a practical problem that can arise when a person is treated as a “terrorist” for the purposes of Singapore law and is subject to financial restrictions under the Terrorism (Suppression of Financing) Act (the “TSFA”). The TSFA generally prohibits “dealing” with terrorist property and imposes compliance obligations on relevant persons.
However, the Order recognises that certain government-linked or social support payments may need to be made to nominees of affected individuals so that basic living needs can be met. Rather than removing the underlying anti-terrorism controls, the Order creates a narrow carve-out: it exempts the Central Provident Fund Board (and the nominee) from the TSFA’s prohibition against dealing, but only for specified categories of payments and only subject to strict conditions.
The Order is therefore best understood as a compliance-management tool. It allows the continued operation of certain welfare and bonus-related payment mechanisms (specifically within the Goods and Services Tax Offset Package for the years 2007 to 2010) while maintaining safeguards over how the money can be accessed and used by nominees.
What Are the Key Provisions?
Section 1 (Citation and commencement) is straightforward. It provides the formal citation of the Order and states that it comes into operation on 10 June 2008. For practitioners, this matters when determining whether the exemption applied to payments or transactions occurring after commencement.
Section 2 (Definition) defines the term “specified person”. This definition is crucial because the exemption in section 3 applies only in relation to a “specified person.” The definition is not merely about being labelled a terrorist; it ties the person to specific detention or restriction statuses under Singapore’s Internal Security Act (Cap. 143) and to the terrorist designation mechanism under the United Nations Act (Cap. 339).
Under section 2, a “specified person” is any person in Singapore who is defined in regulations made under the United Nations Act to be a terrorist and who is, in one of three categories:
- (a) detained under an order made under section 8(1)(a) or (2) of the Internal Security Act;
- (b) placed under a restriction order made under section 8(1)(b) of the Internal Security Act; or
- (c) was detained under section 8(1)(a) of the Internal Security Act, but the detention order has been suspended by the Minister under section 10 of that Act.
This layered definition is legally significant. It ensures that the exemption is limited to a defined population: those who are both (i) designated as terrorists through the United Nations Act regulatory framework and (ii) subject to particular Internal Security Act measures (including a suspension scenario). It also reduces ambiguity about whether the exemption could be invoked for persons outside those statutory categories.
Section 3 (Exemption) is the operative provision. It creates two linked exemptions from the application of section 6 of the TSFA (the “prohibition against dealing” referred to in the Order’s title) in respect of certain payments.
Section 3(1): Exemption for the Central Provident Fund Board
The Central Provident Fund Board (“CPFB”) is exempted from the application of section 6 of the TSFA in respect of payment to any nominee of a specified person of moneys from the Goods and Services Tax Offset Package. The moneys are limited to three named components:
- (a) GST Credits;
- (b) National Servicemen’s Bonus; and
- (c) Senior Citizens’ Bonus.
The exemption is further limited to moneys allotted from 2007 to 2010. This temporal limitation is important: it suggests the exemption was designed to address a specific historical payment stream rather than to create an open-ended permission for future allocations.
Most importantly, section 3(1) imposes a condition: the moneys must be deposited in the bank account of the nominee as designated in a letter of exemption issued by the Minister to the specified person and his nominee in respect of those moneys. In practice, this means the exemption is administratively controlled and tied to a formal ministerial instrument and a designated account.
Section 3(2): Exemption for the nominee
The nominee is also exempted from the application of section 6 of the TSFA in respect of:
- (a) any withdrawal from the designated bank account; and
- (b) the use of sums withdrawn.
However, the nominee’s exemption is subject to two additional conditions:
- Use limitation (condition (i)): except with prior approval of an officer authorised by the Minister, the withdrawn sums may only be used to pay for food, clothing, medicines, medical treatment, insurance premiums and other provisions necessary for satisfying the basic domestic needs of the nominee and his family.
- No transfer restriction (condition (ii)): no withdrawn sum may be transferred to any other bank account of the nominee or specified person or any other person.
These conditions are the core safeguards. They ensure that the exemption does not become a general permission to redirect funds to other accounts or to use funds for purposes beyond basic domestic needs. The “prior approval” mechanism also provides a compliance pathway for exceptional circumstances, but it places the burden on the nominee to obtain authorisation before deviating from the permitted uses.
How Is This Legislation Structured?
This Order is concise and structured around three provisions:
- Section 1 sets out the citation and commencement date.
- Section 2 defines the key term “specified person”, linking terrorist designation under the United Nations Act to specific detention/restriction statuses under the Internal Security Act.
- Section 3 provides the exemption, first for the CPFB’s payment to nominees (with conditions on the designated account and the specific GST Offset components and years), and then for nominees’ withdrawals and use (with strict limitations on permitted expenditures and prohibitions on transferring funds).
There are no additional parts or complex procedural provisions in the extract. The Order’s design reflects its function as a narrow, administratively enforceable exemption rather than a comprehensive regulatory scheme.
Who Does This Legislation Apply To?
The Order applies to a defined set of persons and institutions. On the person side, it applies only where there is a “specified person”—a person in Singapore who is designated as a terrorist under regulations made under the United Nations Act and who is subject to specified detention/restriction arrangements under the Internal Security Act (including a suspended detention scenario).
On the institutional side, the exemption is directed at the Central Provident Fund Board (for making payments to nominees) and at the nominee (for withdrawing and using the funds). The nominee’s ability to access and use the money is conditional upon the existence of a letter of exemption designating the bank account and upon compliance with the permitted-use and no-transfer restrictions.
Why Is This Legislation Important?
For practitioners, the significance of this Order lies in its demonstration of how Singapore balances counter-terrorism financing controls with humanitarian and practical considerations. The TSFA’s prohibition against dealing is designed to prevent terrorists and their networks from accessing funds. Yet, without carefully crafted exemptions, even legitimate, government-administered payments could become operationally impossible—potentially harming dependants or nominees who are not themselves the designated terrorist.
This Order provides a controlled mechanism to keep certain welfare payments flowing while maintaining anti-circumvention safeguards. The requirement that funds be deposited into a designated account and the nominee’s restriction to using funds for basic domestic needs are compliance features that reduce the risk that exempted funds could be repurposed for prohibited activities.
From an enforcement and risk-management perspective, the “no transfer” condition is particularly important. It prevents the nominee from moving funds into other accounts—an action that could otherwise facilitate laundering, commingling, or indirect benefit to the specified person or other parties. The “prior approval” requirement for uses outside the listed categories also creates a clear governance structure: deviations are not left to discretion but must be authorised by an officer authorised by the Minister.
Finally, the temporal and product-specific limitations (GST Credits, National Servicemen’s Bonus, Senior Citizens’ Bonus; allotted from 2007 to 2010) indicate that exemptions of this kind may be designed for particular payment cycles. Lawyers advising affected parties or compliance teams should therefore verify the scope of the exemption letter and the relevant payment categories and years before relying on the exemption.
Related Legislation
- Terrorism (Suppression of Financing) Act (Cap. 325) — including section 6 (prohibition against dealing) and section 7(1) (power to make exemption orders)
- Internal Security Act (Cap. 143) — detention and restriction orders under section 8, and suspension under section 10
- United Nations Act (Cap. 339) — designation of terrorists through regulations made under the Act
Source Documents
This article provides an overview of the Terrorism (Suppression of Financing) (Exemption from Prohibition against Dealing) (No. 5) Order 2008 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.