Statute Details
- Title: Terrorism (Suppression of Financing) (Exemption from Prohibition against Dealing) Order 2018
- Act Code: TSFA2002-S144-2018
- Type: Subsidiary Legislation (SL)
- Authorising Act: Terrorism (Suppression of Financing) Act (Cap. 325)
- Authorising Provision: Section 7(1) of the Terrorism (Suppression of Financing) Act
- Legislative Instrument No.: S 144/2018
- Citation and Commencement: 26 March 2018
- Enacting Date: Made on 23 March 2018
- Status: Current version as at 27 March 2026
- Key Provisions: Section 1 (Citation and commencement); Section 2 (Exemption)
- Primary Beneficiary: Housing and Development Board (HDB)
- Related Legislation (as referenced in the Order): Housing and Development Act (Cap. 129); Town Councils Act (Cap. 329A); Central Provident Fund (Approved Housing Schemes) Regulations (Cap. 36, Rg 12); Housing and Development (Penalties for Late Payment) Rules (Cap. 129, R 5)
What Is This Legislation About?
The Terrorism (Suppression of Financing) (Exemption from Prohibition against Dealing) Order 2018 is a targeted exemption order made under Singapore’s terrorism financing framework. In broad terms, the Terrorism (Suppression of Financing) Act (the “TSFA”) imposes prohibitions on “dealing” with property that is connected to terrorism financing or otherwise subject to the Act’s controls. These prohibitions are designed to prevent terrorists and their supporters from accessing funds or economic resources.
This particular Order does not create a new terrorism financing offence or expand the substantive terrorism financing regime. Instead, it provides a narrow, practical carve-out for a specific situation involving the Housing and Development Board (HDB). The exemption is linked to HDB’s compulsory acquisition of a particular HDB flat and the subsequent use of compensation payable under the Housing and Development Act.
In plain language, the Order recognises that, in the course of compulsory acquisition and related administrative and financial steps, HDB may need to make payments and transfers that would otherwise fall within the TSFA’s “prohibition against dealing”. The Minister for Home Affairs therefore exempts HDB from the application of section 6 of the TSFA for defined activities connected to a named flat and named individuals, and for defined categories of payments and deposits.
What Are the Key Provisions?
Section 1: Citation and commencement establishes the formal identity of the instrument and when it takes effect. The Order is cited as the “Terrorism (Suppression of Financing) (Exemption from Prohibition against Dealing) Order 2018” and comes into operation on 26 March 2018. This matters for practitioners because it fixes the temporal scope of the exemption—i.e., the exemption applies only from the commencement date.
Section 2: Exemption is the operative provision. It provides that the Housing and Development Board is exempted from the application of section 6 of the TSFA in respect of two connected matters:
(a) Compulsory acquisition of a specific HDB flat
The exemption applies to the “compulsory acquisition” of the flat known as Apartment Block 423, Jurong West Avenue 1, #05-202, Singapore 640423. The flat is described as being registered under the names of two individuals: Haja Fakkurudeen Usman Ali and Mohamed Haleem Aysha Siddeeqa, with their dates of birth stated in the Order. The acquisition is stated to be “in accordance with section 56(1)(k) of the Housing and Development Act (Cap. 129)”.
For legal practice, the significance is that the exemption is not general. It is tied to a particular statutory acquisition power under the Housing and Development Act, and to a particular property and set of registered owners. If the acquisition were of a different flat, under a different acquisition ground, or involving different persons, the exemption would not automatically apply.
(b) Utilisation of compensation payable by HDB
The second limb of the exemption concerns what HDB may do with the compensation payable under section 58 of the Housing and Development Act “in relation to” the compulsory acquisition of that flat. The Order specifies that HDB may utilise the compensation for a closed list of purposes. These purposes are essentially payments that settle obligations connected to the flat, and administrative or statutory transfers.
The listed permitted uses include:
- Payment of property tax owed to the Inland Revenue Authority of Singapore by either or both named individuals (Section 2(b)(i)).
- Payment of sums owed to HDB under a loan granted by HDB in performing its function under section 13(d) of the Housing and Development Act (Section 2(b)(ii)). This includes sub-items:
- fire insurance premium paid by HDB and administrative charges incurred for such payment (Section 2(b)(ii)(A)); and
- title search fees, registration fees, and other administrative charges incidental to the compulsory acquisition (Section 2(b)(ii)(B)).
- Payment of penalties to HDB incurred in respect of the flat under rule 3(2) of the Housing and Development (Penalties for Late Payment) Rules (Section 2(b)(iii)).
- Payments to Central Provident Fund (CPF) accounts that are payable for the compulsory acquisition under regulation 14 of the Central Provident Fund (Approved Housing Schemes) Regulations (Section 2(b)(iv)).
- Payment of Town Council charges levied under section 39 of the Town Councils Act that are due or payable by either or both named individuals (Section 2(b)(v)).
- Deposit in court of compensation payable under section 58(2) of the Housing and Development Act (Section 2(b)(vi)).
Practical legal effect: The exemption is framed as “exempted from the application of section 6 of the Act” for the specified activities. While the excerpt does not reproduce section 6 itself, the structure indicates that section 6 contains the prohibition against dealing. The Order therefore authorises HDB to carry out the listed acquisition-related financial steps without being blocked by the TSFA’s dealing prohibition.
Precision and compliance: The Order’s detailed enumeration of permitted uses is a compliance tool. It allows HDB to document that its actions fall within the exemption. For counsel advising HDB or counterparties, the key is to ensure that payments are limited to the categories listed and are connected to the specified acquisition and compensation.
How Is This Legislation Structured?
This instrument is structured as a short subsidiary legislation order with two sections:
- Section 1 sets out the citation and commencement.
- Section 2 provides the substantive exemption, identifying the exempted entity (HDB), the provision from which it is exempt (section 6 of the TSFA), and the specific circumstances and permitted uses (compulsory acquisition of a named flat and utilisation of compensation for a defined list of payments and deposits).
There are no schedules or additional parts in the excerpt provided. The operative content is therefore concentrated in section 2, making it the focal point for practitioners.
Who Does This Legislation Apply To?
Although the Order is made under the TSFA, its direct addressee is clear: it applies to the Housing and Development Board. The exemption is “in respect of” the compulsory acquisition and compensation utilisation described. In other words, the exemption is not a general permission for any person to deal with property; it is a specific exemption for HDB’s actions in a defined acquisition scenario.
The Order also indirectly identifies the relevant private parties: the registered owners of the flat are named, and the permitted payments are those that settle obligations owed by “either or both” of those individuals. However, the legal permission is granted to HDB, not to the named individuals. For practitioners, this distinction matters when assessing liability, compliance duties, and whether other parties (e.g., Town Councils, CPF administrators, or IRAS) are affected. The Order’s scope is operationally about what HDB may do with compensation under the Housing and Development Act without breaching the TSFA’s dealing prohibition.
Why Is This Legislation Important?
Orders of this kind are important because they demonstrate how Singapore balances two policy imperatives: (1) robust counter-terrorism financing controls, and (2) the need for essential public administration to continue without disruption. Compulsory acquisition and compensation processes involve statutory payments, administrative charges, and transfers to government and statutory funds. Without a tailored exemption, the TSFA’s dealing prohibition could create practical obstacles to completing acquisition transactions and settling statutory liabilities.
From an enforcement and compliance perspective, the Order provides clarity. It reduces uncertainty for HDB by specifying exactly which payments and steps are permitted. This helps ensure that HDB can proceed with lawful acquisition and compensation procedures while still maintaining the integrity of the terrorism financing regime.
For practitioners, the key takeaway is that the exemption is narrow, property-specific, and purpose-specific. The detailed references to other statutes and regulations (Housing and Development Act, Town Councils Act, CPF regulations, and penalties rules) indicate that the exemption is designed to align with existing statutory mechanisms. Counsel should therefore treat the Order as a compliance “safe harbour” only within its defined boundaries, and should not assume broader applicability to other acquisitions, other properties, or other categories of payments.
Related Legislation
- Terrorism (Suppression of Financing) Act (Cap. 325) — particularly section 6 (prohibition against dealing) and section 7(1) (power to make exemption orders)
- Housing and Development Act (Cap. 129) — section 56(1)(k) (compulsory acquisition ground) and section 58 (compensation and deposit in court)
- Town Councils Act (Cap. 329A) — section 39 (charges levied by Town Councils)
- Housing and Development (Penalties for Late Payment) Rules (Cap. 129, R 5) — rule 3(2)
- Central Provident Fund (Approved Housing Schemes) Regulations (Cap. 36, Rg 12) — regulation 14
Source Documents
This article provides an overview of the Terrorism (Suppression of Financing) (Exemption from Prohibition against Dealing) Order 2018 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.