Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019

Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019 2020 REVISED EDITION This revised edition incorporates all amendments up to and including 1 December 2021 and comes into operation on 31 December 2021 An Act to regulate persons who carry on a business of regulated dealing or as intermediaries for regulated dealing, so as to prevent money laundering, terrorism financing and the financing of proliferation of weapons of mass destruction. [Act 6 of 2024 wef 01/05/2024] [10 April 2019] PART 1 PRELIMINARY Short title 1. This Act is the Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019. [Act 6 of 2024 wef 01/05/2024] Interpretation 2. In this Act, unless the context otherwise requires — “asset-backed token” means a token, certificate or other instrument backed by one or more precious metals, precious stones or precious products that entitles the holder to the precious metal, precious stone or precious product, or part of it, but excludes — (a) securities or derivatives contracts within the meanings of the Securities and Futures Act 2001; [Act 6 of 2024 wef 01/05/2024] (b) commodity contracts within the meaning of the Commodity Trading Act 1992; (c) digital payment tokens within the meaning of the Payment Services Act 2019; and [Act 6 of 2024 wef 01/05/2024] (d) any token, certificate or other instrument that may be prescribed; [Act 6 of 2024 wef 01/05/2024] “Assistant Registrar” means an Assistant Registrar of Regulated Dealers appointed under section 4(1); “authorised officer” means an authorised officer appointed under section 4(2); “cash transaction report” means a cash transaction report under section 17; “company” has the meaning given by section 4(1) of the Companies Act 1967; “compliance officer” means an employee or officer in a management position of a regulated dealer who is responsible for ensuring that the regulated dealer complies with the measures under this Act for — (a) the prevention of money laundering; (b) the prevention of terrorism financing; and (c) the prevention of the financing of proliferation of weapons of mass destruction; [Act 6 of 2024 wef 01/05/2024] “customer” means a person with whom a regulated dealer enters into or intends to enter into a transaction; “Deputy Registrar” means a Deputy Registrar of Regulated Dealers appointed under section 4(1); “FATF” means the intergovernmental body known as the Financial Action Task Force; “FATF Recommendations” means the recommendations issued by the FATF from time to time relating to — (a) the prevention of money laundering; [Act 6 of 2024 wef 01/05/2024] (b) the prevention of terrorism financing; and [Act 6 of 2024 wef 01/05/2024] (c) the prevention of the financing of proliferation of weapons of mass destruction; [Act 6 of 2024 wef 01/05/2024] “financial institution” has the meaning given by section 2 of the Financial Services and Markets Act 2022; [Act 18 of 2022 wef 28/04/2023] “intermediary”, in relation to regulated dealing, means a broker, an auctioneer, an exchange or any provider of a trading or clearing facility, for regulated dealing, whether by electronic means or otherwise; [Deleted by Act 6 of 2024 wef 01/05/2024] “pawnbroker” has the meaning given by section 3 of the Pawnbrokers Act 2015; “precious metal” means any precious metal specified in Part 1 of the Schedule in a manufactured or unmanufactured state; “precious product” means any jewellery, watch, apparel, accessory, ornament or other finished product — (a) made up of, containing or having attached to it, any precious stone or precious metal or both; and (b) that satisfies either of the following: (i) at least 50% of the value of the jewellery, watch, apparel, accessory, ornament or other finished product (or other percentage of value prescribed in substitution) is attributable to the precious stone or precious metal or both; (ii) the jewellery, watch, apparel, accessory, ornament or other finished product is priced above the prescribed value, but excludes any product or class of products of a type prescribed; [Act 6 of 2024 wef 01/05/2024] “precious stone” means any precious stone specified in Part 2 of the Schedule; “registered dealer” means a regulated dealer who is registered under section 7; “Registrar” means the Registrar of Regulated Dealers appointed under section 4(1); “registration” means registration under section 7; “regulated dealer” means any person who carries on — (a) a business of regulated dealing; or (b) business as an intermediary for regulated dealing, but excludes a pawnbroker and any other person as may be prescribed; “regulated dealing” means doing any of the following: (a) manufacturing any precious stone, precious metal or precious product; (b) importing or possessing for sale any precious stone, precious metal or precious product; (c) selling or offering for sale any precious stone, precious metal or precious product; (d) selling or redeeming asset‑backed tokens; (e) purchasing any precious stone, precious metal or precious product for the purposes of resale; “relevant offence” means an offence under — (a) Part 2, 3 or 5; (b) sections 50 to 57 of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992; (c) the Terrorism (Suppression of Financing) Act 2002; (d) any regulations made under the United Nations Act 2001; (e) any provision of any other written law relating to — (i) the prevention of money laundering; (ii) the prevention of terrorism financing; or (iii) the prevention of the financing of proliferation of weapons of mass destruction; or (f) the law of any foreign country or territory relating to — (i) the prevention of money laundering; (ii) the prevention of terrorism financing; or (iii) the prevention of the financing of proliferation of weapons of mass destruction; [Act 6 of 2024 wef 01/05/2024] “sale” includes a supply under a conditional sale agreement or hire‑purchase agreement within the meanings given by section 2(1) of the Hire‑Purchase Act 1969, and “selling” is construed accordingly; “secondhand goods dealer” means a secondhand goods dealer within the meaning given by the Secondhand Goods Dealers Act 2007; “substantial shareholder”, in relation to a company, has the meaning given by section 81 of the Companies Act 1967; “Suspicious Transaction Reporting Officer” has the meaning given by section 2(1) of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992. Purpose of Act 3. The purpose of this Act is to combat money laundering, terrorism financing and the financing of proliferation of weapons of mass destruction in the precious stones industry and precious metals industry by — (a) regulating the persons who carry on a business of regulated dealing or business as intermediaries for regulated dealing; and (b) prescribing measures to prevent regulated dealing from being used to facilitate money laundering, terrorism financing or the financing of proliferation of weapons of mass destruction. [Act 6 of 2024 wef 01/05/2024] Appointment of Registrar, Deputy Registrars, Assistant Registrars and authorised officers 4.—(1) The Minister may appoint from among public officers — (a) a Registrar of Regulated Dealers; and (b) one or more Deputy Registrars of Regulated Dealers and Assistant Registrars of Regulated Dealers. (2) The Registrar may appoint any of the following persons to be an authorised officer for the purposes of this Act: (a) a public officer; (b) an auxiliary police officer appointed under the Police Force Act 2004; (c) a public accountant registered or deemed to be registered under the Accountants Act 2004; (d) any individual suitably qualified and trained to be an authorised officer. (3) The Registrar is responsible for the administration of this Act, and may exercise all the powers and perform all the duties and functions of the Registrar under this Act, subject to any general or special directions of the Minister. (4) A Deputy Registrar or an Assistant Registrar may exercise all the powers and perform all the duties and functions of the Registrar under any provision of this Act (except the power of appointment and the power of delegation conferred by this section), subject to any condition or limitation that the Registrar may specify; and any reference in the provision of this Act to the Registrar includes a reference to a Deputy Registrar or an Assistant Registrar. (5) The Registrar may delegate the exercise of any of the powers conferred or duties imposed on the Registrar under any provision of this Act (except the power of appointment and the power of delegation conferred by this section) to an authorised officer, subject to any condition or limitation that the Registrar may specify; and any reference in the provision of this Act to the Registrar includes a reference to the authorised officer. Public servants 5. Any authorised officer appointed under section 4(2) is taken to be a public servant for the purposes of the Penal Code 1871 when exercising any power conferred or performing any duty imposed on the authorised officer by the Registrar.