Schedule 3

In this Schedule, unless the context otherwise requires —“beneficial owner”, in relation to an entity or a legal arrangement, means —

the individual who ultimately owns all the assets or undertakings of the entity or legal arrangement; or

the individual who exercises effective control over the entity or legal arrangement;“business day” means a day other than a Saturday, Sunday or public holiday;“cash” means currency notes and coins (whether of Singapore or of a foreign country or territory) which are legal tender and circulate as money in the country or territory of issue;“cash equivalent” means any physical or electronic form of a voucher, token, stamp, coupon, card or other article the redemption of which in accordance with its terms entitles the holder to receive any precious stone, precious metal or precious product up to the value stated on or recorded in or in respect of the voucher, token, stamp, coupon, card or other article;“close associate”, in relation to a politically-exposed person, means —

a partner of the politically-exposed person;

a person accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the politically‑exposed person;

a person whose directions, instructions or wishes the politically‑exposed person is accustomed or under an obligation, whether formal or informal, to act in accordance with; or

a person with whom the politically‑exposed person has an agreement or arrangement, whether oral or in writing and whether express or implied, to act together;“customer” means a person to whom a pawnbroker sells or intends to sell any precious stone, precious metal or precious product;“family member”, in relation to a politically‑exposed person, means a spouse or child, an adopted child, or a stepchild, a sibling, an adopted sibling or a stepsibling or a parent or step‑parent, of the politically‑exposed person;“FATF” means the intergovernmental body known as the Financial Action Task Force;“foreign country or territory” means a country, territory or jurisdiction other than Singapore;“foreign government entity” means the government of a foreign country or territory, a ministry or department within that government, or an agency established by written law in that country or territory;“officer” has the meaning given by section 80(5);“pawner” includes a person offering to pawn goods;“politically‑exposed person” means an individual who is or has been entrusted with a prominent public function —

in Singapore;

in a foreign country or territory; or

in an international organisation;“precious metal”, “precious product” and “precious stone” have the meanings given by section 2 of the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019;“prominent public function” includes the role held by a head of state, head of government, government minister, senior civil or public servant, senior judicial or military official, senior executive of a state-owned corporation, senior political party official, member of the legislature or member of the senior management of an international organisation (including a director, deputy director or member of a board or an equivalent function);“relevant country or territory” means a foreign country or territory that is subject to a call made by the FATF (through a public statement, notice or directive published on its official website at https://www.fatf‑gafi.org/) for countermeasures or enhanced customer due diligence measures;“relevant foreign regulatory authority”, in relation to a pawnbroker, means an authority of a foreign country or territory exercising any function in respect of the pawnbroker that corresponds to a regulatory function of the Registrar under this Act;“relevant loan” means a loan exceeding $20,000;“relevant transaction” means any of the following transactions conducted wholly or partly in Singapore:

a sale of any precious stone, precious metal or precious product by a pawnbroker to a customer, for which cash or a cash equivalent exceeding $20,000 is received as payment;

2 or more sales of any precious stone, precious metal or precious product in a single day by a pawnbroker to the same customer, or to customers whom the pawnbroker knows act on behalf of the same person, for which cash or a cash equivalent in total exceeding $20,000 is received as payment;“Singapore government entity” means a ministry or department of the Government, an organ of State or a statutory board.(2) In this Schedule, unless the context otherwise requires, a reference to a financial institution supervised by the Monetary Authority of Singapore does not include a person who is exempted from being licensed, approved, registered or otherwise regulated by the Monetary Authority of Singapore under any written law.Part 2CUSTOMER DUE DILIGENCE AND OTHER MEASURESPawnbroker to perform customer due diligence measures in certain circumstances2.—

A pawnbroker must perform the customer due diligence measures specified in paragraph 3 in the following circumstances:

before the pawnbroker makes a relevant loan;

before the pawnbroker enters into a relevant transaction;

where the pawnbroker has reason to suspect money laundering or terrorism financing;

where the pawnbroker has reason to doubt the veracity or adequacy of information obtained from earlier customer due diligence measures.(2) For the purposes of sub-paragraph (1)(a), where a pawnbroker suspects that 2 or more loans are or may be related, linked, or the result of a deliberate restructuring of an otherwise single relevant loan into smaller transactions in order to evade the provisions of this Part, the pawnbroker must aggregate them and treat them as a single loan.(3) A pawnbroker may choose not to perform or complete performing any measure it is required to perform under this Part if —

the pawnbroker has reason to suspect that the transaction relates to money laundering or terrorism financing; and

the pawnbroker has reason to believe that performing the measure will tip off the pawner, the customer or any other person.(4) Where, in relation to any pawner or customer, a pawnbroker is unable or chooses not to complete performing any measure it is required to perform under this Part for any reason, the pawnbroker must —

decline to enter into any transaction with the pawner or customer;

terminate any transaction entered into with the pawner or customer;

determine whether to make a disclosure under section 45(1) of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 or Part 3 of the Terrorism (Suppression of Financing) Act 2002; and

record the basis of its determination under sub-paragraph (c).Customer due diligence measures: generally3.—

For the purposes of paragraph 2(1), a pawnbroker must perform the customer due diligence measures specified in this paragraph.(2) The pawnbroker must identify and verify the identity of the pawner, the customer, any person on whose behalf the pawner or customer is acting, and any beneficial owner of that person, in accordance with paragraphs 4, 5 and 6 (as applicable). For this purpose, the pawnbroker may rely on information already obtained in accordance with paragraph 7, or rely on third parties in accordance with paragraph 8.(3) The pawnbroker must understand and, where appropriate, obtain information on the purpose and intended nature of the business relationship with the pawner or customer.(4) The pawnbroker must conduct ongoing due diligence on the business relationship with the pawner or customer, and scrutinise all transactions entered into with the pawner or customer throughout the course of that relationship, to ensure that the transactions are consistent with the pawnbroker’s knowledge of the pawner or customer and the pawner’s or customer’s business, risk profile and source of funds.(5) A pawnbroker must perform the measures in sub‑paragraphs (2), (3) and (4) in a face‑to‑face meeting with the pawner or customer, unless the pawnbroker assesses that the risks of money laundering and terrorism financing are low.(6) The pawnbroker must, in addition to performing the measures in sub‑paragraphs (2), (3) and (4), perform the enhanced customer due diligence measures required under paragraph 9, in the circumstances specified in that paragraph.(7) The pawnbroker may, in lieu of performing the measures in sub‑paragraphs (2), (3) and (4), perform simplified customer due diligence measures in accordance with paragraph 10.Pawnbroker to ascertain whether pawner or customer acting on own behalf or on behalf of another person4.—

A pawnbroker must obtain the pawner’s or the customer’s identification information.(2) A pawnbroker must ascertain whether a pawner or customer is acting on the pawner’s or the customer’s own behalf or on behalf of another person.(3) Where a pawnbroker ascertains that a pawner or customer is acting on behalf of another person, the pawnbroker must —

identify and verify the identity of the person in accordance with paragraph 5 or 6 (as the case may be) depending on whether the person is an individual, an entity or a legal arrangement; and

verify that the pawner or customer is authorised to act on behalf of the person.Pawner or customer acting on behalf of individual5.—

This paragraph applies where a pawner or customer is acting on behalf of an individual.(2) The pawnbroker must identify and verify the identity of the individual by obtaining the individual’s identification information.Pawner or customer acting on behalf of entity or legal arrangement6.—

This paragraph applies where a pawner or customer is acting on behalf of a person which is an entity or a legal arrangement (called in this paragraph the legal person).(2) The pawnbroker must identify and verify the identity of the legal person by obtaining the following information:

the name of the legal person;

the legal form of the legal person;

proof of the legal person’s existence;

the place under which the legal person is incorporated, registered or otherwise constituted;

the instrument under which the legal person is constituted;

if the legal person is incorporated or registered in Singapore, its unique entity number;

if the legal person is incorporated or registered outside Singapore, its foreign incorporation or registration number;

if the legal person is an entity, the identity of each individual having a senior management position in the legal person;

the address of the legal person’s registered office and its principal place of business.(3) The pawnbroker must identify each beneficial owner of the legal person and take reasonable measures to verify the identity of each beneficial owner by obtaining the following information:

if the legal person is an entity —

the identification information of each individual (if any) who ultimately has a controlling ownership interest in the legal person, according to the law and instrument under which the legal person is constituted;

if it is doubtful whether all or any of the individuals who ultimately have a controlling interest in the legal person are its beneficial owners, or where no individual exerts control through ownership interests, the identification information of each individual (if any) exercising control of the legal person through other means; or

if no individual is identified under sub‑paragraphs (i) and (ii), the identification information of each individual having a senior management position in the legal person;

if the legal person is a legal arrangement —

in any case where the legal arrangement is a trust, the identities of —

the settlor;

each trustee;

the protector (if any);

each beneficiary or class of beneficiaries; and

any other individual exercising ultimate effective control over the trust; or

in any case where the legal arrangement is not a trust, the identity of each person holding a position equivalent or similar to any position in sub‑paragraph (i).(4) A pawnbroker need not identify each beneficial owner of the legal person where the legal person is —

an entity listed on the Singapore Exchange;

a financial institution that is subject to and supervised for compliance with requirements for the prevention of money laundering and terrorism financing by the Monetary Authority of Singapore, as listed in Appendix 1 of the direction known as MAS Notice 626 issued by the Monetary Authority of Singapore; or

a financial institution incorporated or established outside Singapore that is subject to and supervised for compliance with requirements for the prevention of money laundering and terrorism financing consistent with standards set by the FATF.(5) Where a pawnbroker determines that the legal person is of a type specified in sub‑paragraph (4), the pawnbroker must record the basis for its determination.Reliance on identification and verification already obtained

A pawnbroker may rely on a third party to perform the customer due diligence measures that the pawnbroker is required to perform under paragraphs 4, 5 and 6, only if —

the pawnbroker has obtained the prior written approval of the Registrar to rely on the third party; and

the pawnbroker complies with all conditions and restrictions imposed by the Registrar in giving that written approval.(2) The Registrar must refuse to grant written approval under sub‑paragraph (1) unless the Registrar is satisfied that —

the pawnbroker will immediately obtain the identification information and any relevant documentation from the third party; and

the third party —

is subject to and supervised for compliance with requirements for the prevention of money laundering and terrorism financing consistent with standards set by the FATF; and

has adequate measures in place to comply with those requirements.(3) The Registrar may, where the Registrar considers it necessary or expedient, grant written approval under sub‑paragraph (1) in respect of a class or description of pawners, customers or third parties.(4) To avoid doubt, the pawnbroker remains responsible for compliance with its obligations to perform the customer due diligence measures under paragraphs 4, 5 and 6 despite its use of a third party under this paragraph.Enhanced customer due diligence measures9.—

A pawnbroker must perform enhanced customer due diligence measures if —

the relevant loan mentioned in paragraph 2(1)(a) is complex or unusually large;

the pawner has taken up 2 or more relevant loans that have no apparent or visible economic or lawful purpose;

the pawner, a person on whose behalf the pawner is acting or a beneficial owner of the person, in any relevant loan —

is a resident of or originates from, or the relevant loan relates to, a relevant country or territory; or

is, or the relevant loan is, a person or a loan that the Registrar has notified the pawnbroker is a person or loan that presents a high risk of money laundering or terrorism financing; or

the pawnbroker has reason to believe that the pawner, a person on whose behalf the pawner is acting, a beneficial owner of the person, or the relevant loan referred to in paragraph 2(1)(a), may present a high risk of money laundering or terrorism financing.(2) A pawnbroker who enters or intends to enter into a relevant transaction must perform enhanced customer due diligence measures if —

the relevant transaction is unusually large;

the customer has entered into 2 or more relevant transactions that have no apparent or visible economic or lawful purpose;

the customer, a person on whose behalf the customer is acting or a beneficial owner of the person, in any relevant transaction —

is a resident of or originates from, or the relevant transaction relates to, a relevant country or territory; or

is, or the relevant transaction is, a person or a transaction that the Registrar has notified the pawnbroker is a person or transaction that presents a high risk of money laundering or terrorism financing; or

the pawnbroker has reason to believe that the customer, the person on whose behalf the customer is acting, a beneficial owner of the person, or the relevant transaction, may present a high risk of money laundering or terrorism financing.(3) For the purpose of determining whether a person mentioned in sub‑paragraph (1)(d) or (2)(d) may present a high risk of money laundering or terrorism financing, the pawnbroker must consider whether that person is a resident of or originates from —

a foreign country or territory which the FATF (by a public statement, notice or directive published on its official website at https://www.fatf‑gafi.org/) identifies as a foreign country or territory subject to increased monitoring; or

a foreign country or territory which the Registrar has notified the pawnbroker to be a foreign country or territory with inadequate measures to prevent money laundering or terrorism financing.(4) A pawnbroker must keep a record of —

the pawnbroker’s reasons for performing enhanced customer due diligence measures;

the enhanced customer due diligence measures that the pawnbroker has performed; and

the pawnbroker’s findings from performing the enhanced customer due diligence measures.(5) In this paragraph —“enhanced customer due diligence measures” includes —

examining, so far as reasonably possible, the background and purpose of the relevant loan or relevant transaction;

increasing the degree and nature of monitoring of the business relationship with the pawner, in order to determine whether the relevant loan is unusual or suspicious; and

increasing the degree and nature of monitoring of the transactions entered into with a customer so as to identify suspicious transactions, including transactions or patterns of transactions which are inconsistent with the customer’s profile.Simplified customer due diligence measures10.—

A pawnbroker may perform simplified customer due diligence measures proposed by the pawnbroker instead of the measures mentioned in paragraph 3(2), (3) and (4), only if —

the pawnbroker has assessed that the risks of money laundering and terrorism financing are low;

the pawnbroker has obtained the prior written approval of the Registrar to perform the simplified customer due diligence measures; and

the pawnbroker complies with any conditions imposed by the Registrar in giving that written approval.(2) The Registrar must not grant written approval under sub‑paragraph (1) if the Registrar is of the view that —

either or both of the following apply:

any of the circumstances in paragraph 9(1)(a) to (d) or 9(2)(a) to (d) exists;

the pawner, the customer, any person on whose behalf the pawner or customer is acting, or any beneficial owner of that person, is a politically‑exposed person or a family member or close associate of a politically‑exposed person;

the risks of money laundering or terrorism financing are high; or

the simplified customer due diligence measures proposed by the pawnbroker will not effectively identify and verify the identity of the pawner, the customer, any person on whose behalf the pawner or customer is acting, or any beneficial owner of that person.(3) The Registrar may, where the Registrar considers it necessary or expedient, grant written approval under sub‑paragraph (1) in respect of a class or description of pawners or customers.Customer due diligence measures for existing customers

when customer due diligence measures (if any) were last applied to that customer; and

the adequacy of information already obtained by the pawnbroker in relation to that customer.Existing pawners12.—

A pawnbroker must perform customer due diligence measures in respect of its existing pawners with effect from 1 April 2015, and must perform those measures within 12 months after that date.(2) For the purposes of sub-paragraph (1), customer due diligence measures must be performed —

having regard to the pawnbroker’s assessment of materiality and risk; and

at appropriate times, having regard to whether and when customer due diligence measures have previously been undertaken and to the adequacy of the information obtained.Ongoing customer due diligence

A pawnbroker must consider whether to make a disclosure under section 45(1) of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 or Part 3 of the Terrorism (Suppression of Financing) Act 2002, and document the basis for its decision, in the following circumstances:

the pawnbroker is unable to complete performing the customer due diligence measures in this Part for any reason;

a pawner is unable or unwilling to provide any information requested by the pawnbroker, or decides to withdraw the application for the relevant loan when requested to provide information;

the relevant loan is part of an unusual pattern of loans with no apparent economic or lawful purpose;

a customer is unable or unwilling to provide any information requested by the pawnbroker, or decides not to proceed with a transaction when requested to provide information;

the relevant transaction is part of an unusual pattern of transactions with no apparent economic or lawful purpose;

any other circumstance exists for the making of a disclosure under section 45(1) of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 or Part 3 of the Terrorism (Suppression of Financing) Act 2002.(2) If the pawnbroker decides to make such a disclosure, it must submit a copy of the report relating to the disclosure to the Registrar.Cash transaction report15.—

For the purposes of section 74A(1) —

the form for a cash transaction report is Form NP 784 as set out at the website at https://www.police.gov.sg; and

the time for the submission of a cash transaction report is not later than the 15th business day after the date on which the relevant transaction is entered into.(2) For the purposes of section 74A(2), the period for which a copy of a cash transaction report must be kept is 5 years after the date of submission of the cash transaction report.Part 3additional measuresPawnbroker to assess whether pawner or customer, etc., is politically‑exposed person16.—

A pawnbroker must have appropriate risk-management systems, and take reasonable measures, to assess whether a relevant person is a politically‑exposed person or a family member or close associate of a politically‑exposed person.(2) Where the pawnbroker determines that a relevant person is a politically‑exposed person or a family member or close associate of a politically‑exposed person, the pawnbroker must —

obtain the approval of one of the pawnbroker’s directors or managers for establishing or continuing any business relationship with the relevant person;

take reasonable measures to establish the relevant person’s source of wealth and source of funds; and

conduct enhanced ongoing monitoring of any business relationship with the relevant person.(3) Where the pawnbroker assesses that a relevant person is a politically‑exposed person or a family member or close associate of a politically‑exposed person, the pawnbroker must record the basis of its assessment.(4) To avoid doubt, the measures that a pawnbroker is required to take under this paragraph are in addition to any other measures that the pawnbroker is required to take under this Schedule.(5) In this paragraph, “relevant person” means a pawner, a customer, any person on whose behalf a pawner or customer is acting, and any beneficial owner of that person.New technologies

identify and assess the money laundering or terrorism financing risks that may arise in relation to the product, business practice or technology; and

take appropriate measures to manage and mitigate those risks.Part 4MEASURES RELATing TO targeted financial sanctions AGAINST TERRORISMPawnbroker to assess whether pawner or customer, etc., is terrorist or terrorist entity18.—

A pawnbroker must, before making a relevant loan or entering into a relevant transaction, take reasonable measures to assess whether the relevant person is a terrorist or terrorist entity under the First Schedule to the Terrorism (Suppression of Financing) Act 2002.(2) If a pawnbroker has reason to suspect that a relevant person is a terrorist or terrorist entity under the Terrorism (Suppression of Financing) Act 2002, the pawnbroker must —

decline to enter into any transaction with the relevant person;

terminate any transaction entered into with the relevant person; and

make a report to the police.(3) In this paragraph, “relevant person” means a pawner, a customer, any person on whose behalf a pawner or customer is acting, and any beneficial owner of that person.[S 308/2019; S 993/2020]