Statute Details
- Title: Terrorism (Suppression of Financing) (Exemption from Prohibition against Dealing) (No. 8) Order 2010
- Act Code: TSFA2002-S376-2010
- Legislative Type: Subsidiary legislation (Order)
- Authorising Act: Terrorism (Suppression of Financing) Act (Cap. 325)
- Authorising Power: Section 7(1) of the Terrorism (Suppression of Financing) Act
- Instrument Number: SL 376/2010
- Date of Making: 8 July 2010
- Commencement: 9 July 2010
- Key Provisions: Definitions of “specified person”; exemption from application of section 6 of the Act; conditions governing cash payments and nominee withdrawals
- Status: Current version as at 27 Mar 2026
- Related Legislation: Terrorism (Suppression of Financing) Act; Internal Security Act (Cap. 143); United Nations Act (Cap. 339); Central Provident Fund framework (for CPF Board administration); Workfare Income Supplement – Special Payment Scheme (Jan 2009)
What Is This Legislation About?
The Terrorism (Suppression of Financing) (Exemption from Prohibition against Dealing) (No. 8) Order 2010 (“the Order”) is a targeted exemption instrument made under Singapore’s terrorism financing regime. In essence, it carves out a narrow exception to a general legal prohibition on “dealing” with terrorist property or funds, but only for a specific administrative and welfare-related payment context.
The underlying policy is straightforward: Singapore’s Terrorism (Suppression of Financing) Act (“TSFA”) imposes strict controls to prevent terrorists and their associates from accessing financial resources. However, the law also recognises that some payments may be necessary for basic living needs of dependants or nominees of persons who are designated as terrorists and are subject to detention or restriction orders under the Internal Security Act. This Order addresses that practical need without undermining the core objective of preventing access to funds beyond what is strictly necessary.
Accordingly, the Order exempts the Central Provident Fund Board (“CPF Board”)—and, in turn, the nominee of a “specified person”—from the application of section 6 of the TSFA in relation to certain cash payments under the Workfare Income Supplement – Special Payment Scheme announced in January 2009. The exemption is conditional, and it is designed to ensure that the funds are used only for basic domestic needs and cannot be diverted to other accounts or other persons.
What Are the Key Provisions?
1. Citation and commencement
Section 1 provides the formal citation and commencement date. The Order may be cited as the “Terrorism (Suppression of Financing) (Exemption from Prohibition against Dealing) (No. 8) Order 2010” and comes into operation on 9 July 2010. For practitioners, this matters when assessing whether any prohibited dealing occurred before the exemption took effect, or whether compliance obligations were triggered at a particular time.
2. Definition of “specified person”
Section 2 defines “specified person” by reference to two layers of criteria:
- Designation as a terrorist under the United Nations Act: the person must be defined in regulations made under the United Nations Act (Cap. 339) to be a terrorist.
- Domestic status under the Internal Security Act: the person must fall into one of three categories:
- Detained under an order made under section 8(1)(a) or (2) of the Internal Security Act;
- Placed under a restriction order made under section 8(1)(b) of the Internal Security Act;
- Previously detained under section 8(1)(a) of the Internal Security Act, but where that detention order has been suspended by the Minister under section 10 of that Act.
This definition is crucial because the exemption is not available for all persons affected by terrorism financing controls. It is limited to those who meet the combined “terrorist” designation and the specific detention/restriction/suspension status under the Internal Security Act.
3. The exemption from the prohibition against dealing (CPF Board)
Section 3(1) is the operative exemption. It states that the CPF Board is exempted from the application of section 6 of the TSFA in respect of making a cash payment to any nominee of a specified person.
The cash payment must be:
- “of such amount” as the specified person is entitled to receive under the Workfare Income Supplement – Special Payment Scheme announced in January 2009; and
- for work done by the specified person for the years 2008 and 2009.
Condition on payment handling: the exemption is subject to the condition that the cash payment is deposited in the bank account of the nominee as designated in the letter of exemption issued by the Minister to the specified person and his nominee in respect of the cash payment.
Practically, this means the exemption is not automatic for any nominee and any account. The Minister’s letter of exemption designates the account, and the CPF Board must route the payment accordingly. For compliance officers, this creates a clear procedural checkpoint: verify that the payment is made only to the designated nominee account stated in the exemption letter.
4. The exemption for the nominee: withdrawal and permitted use
Section 3(2) extends the exemption to the nominee of the specified person. The nominee is exempted from the application of section 6 of the TSFA in relation to:
- any withdrawal from the designated bank account; and
- the use of the sums withdrawn.
However, the exemption is conditional. The nominee must comply with two key restrictions:
- Use limitation (basic domestic needs): except with the prior approval of an officer authorised by the Minister, the sums withdrawn shall only be used to pay for:
- food,
- clothing,
- medicines,
- medical treatment,
- insurance premiums, and
- such other provisions as are necessary for satisfying the basic domestic needs of the nominee and his family.
- No transfer to other accounts or persons: no sum withdrawn may be transferred to any other bank account of the nominee or specified person or any other person.
These conditions are designed to prevent the nominee from using the funds as a conduit to provide financial benefit to the specified person or to third parties. The “no transfer” rule is particularly significant: it restricts not only the use of funds but also the movement of funds between accounts, which is often where compliance failures can occur.
5. The role of ministerial approvals
Although the Order is an exemption instrument, it still embeds a governance mechanism: where the nominee wishes to use funds beyond the enumerated categories, prior approval from an officer authorised by the Minister is required. This creates an administrative oversight layer and provides a compliance pathway for exceptional circumstances.
How Is This Legislation Structured?
The Order is short and structured in three main provisions:
- Section 1 (Citation and commencement): identifies the instrument and its effective date.
- Section 2 (Definition): defines “specified person” by combining United Nations Act terrorist designation with Internal Security Act detention/restriction/suspension status.
- Section 3 (Exemption): sets out the exemption for the CPF Board and the nominee, including the conditions governing the payment, withdrawal, and permitted use of funds.
There are no additional parts or complex schedules in the extract provided; the instrument is designed to operate as a narrow, case-specific legal mechanism rather than a comprehensive regulatory framework.
Who Does This Legislation Apply To?
The Order applies to two categories of persons/entities:
- CPF Board: as the body responsible for administering CPF-related payments and making the relevant cash payment to a nominee.
- Nominees of “specified persons”: individuals designated to receive the cash payment on behalf of a specified person.
Its personal scope is anchored to the definition of “specified person.” Therefore, the exemption is relevant only where the underlying person is (i) defined as a terrorist in regulations made under the United Nations Act and (ii) detained/restricted/suspended under the Internal Security Act as specified in section 2. The nominee’s rights under the exemption are also tied to the letter of exemption issued by the Minister, which designates the bank account and the payment context.
Why Is This Legislation Important?
From a practitioner’s perspective, the Order illustrates how Singapore balances two competing imperatives: (1) strict prevention of terrorism financing and (2) practical humanitarian and welfare considerations for dependants. While the TSFA’s prohibition against dealing is broad, this Order demonstrates that the legal system can provide controlled exceptions where the funds are intended for basic living needs and where safeguards are in place.
In compliance terms, the Order is important because it creates a legally authorised pathway for a specific type of payment that would otherwise be caught by the TSFA’s dealing prohibition. Without such an exemption, the CPF Board and nominees could face legal risk in administering or accessing funds. The conditions—designated accounts, restricted use categories, ministerial approval for deviations, and the prohibition on transfers—provide concrete guardrails that compliance teams can operationalise.
For legal advisers, the Order also underscores the significance of documentary controls. The “letter of exemption” is central: it designates the nominee’s account and frames the scope of permitted handling. In disputes or investigations, the existence, content, and compliance with that letter would likely be pivotal evidence.
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/restriction framework (section 8) and suspension by the Minister (section 10)
- United Nations Act (Cap. 339) — regulations defining terrorists for the purposes of Singapore’s UN-based counter-terrorism measures
- Workfare Income Supplement – Special Payment Scheme (announced January 2009) — the specific welfare payment context referenced in the exemption
Source Documents
This article provides an overview of the Terrorism (Suppression of Financing) (Exemption from Prohibition against Dealing) (No. 8) Order 2010 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.