Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019 · 2020 Revised Edition · Part 3 · Prevention of Money Laundering, Terrorism Financing and Financing of Proliferation of Weapons of Mass Destruction
16. Customer due diligence
Feedback & supportLast amended by an amending law of 2024.
Subject to subsections (3) and (4), a regulated dealer must perform the prescribed customer due diligence measures in any of the following circumstances:
regulated dealer
“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;
before entering into a designated transaction;
where the regulated dealer has reason to suspect money laundering, terrorism financing or the financing of proliferation of weapons of mass destruction;
where the regulated dealer has reason to doubt the veracity or adequacy of information obtained from earlier customer due diligence measures;
under circumstances prescribed for the purposes of this section.
Different customer due diligence measures may be prescribed in relation to different regulated dealers or classes of regulated dealers, different types of designated transactions or different customers or classes of customers.
customer
“customer” means a person with whom a regulated dealer enters into or intends to enter into a transaction;
A regulated dealer must not proceed with any designated transaction if there exists any circumstances that are prescribed.
designated transaction
“designated transaction” means any of the following transactions conducted wholly or partly in Singapore:(a)a sale of any precious stone, precious metal, precious product or asset‑backed token by a regulated dealer to a customer, for which cash or a cash equivalent exceeding the threshold amount is received as payment;(b)2 or more sales of any precious stone, precious metal, precious product or asset‑backed token in a single day by a regulated dealer to the same customer, or to customers whom the regulated dealer knows act on behalf of the same person, for which cash or a cash equivalent in total exceeding the threshold amount is received as payment;(c)a purchase of any precious stone, precious metal or precious product from a customer (who is not a regulated dealer) by a regulated dealer (who is a secondhand goods dealer), for which cash or a cash equivalent exceeding the threshold amount is received as payment;(d)a transaction prescribed as a designated transaction;
Unless subsection (3) applies, a regulated dealer may choose not to perform or to complete any measure that the regulated dealer is required by this section to perform if —
the regulated dealer has reason to suspect that the designated transaction relates to money laundering, terrorism financing or the financing of proliferation of weapons of mass destruction; and
the regulated dealer has reason to believe that performing the measure will tip off the customer or any other person.
Where, in relation to any customer, a regulated dealer is for any reason unable or chooses not to complete performing any measure required to be performed under this section, the regulated dealer must —
decline to enter into any transaction with the customer;
terminate any transaction entered into with the customer;
determine whether to make a disclosure under section 45 of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 or section 8 or 10 of the Terrorism (Suppression of Financing) Act 2002;
record the basis of the regulated dealer’s determination under paragraph (c); and
carry out any other measures that may be prescribed.
A regulated dealer who fails to comply with subsection (1), (3) or (5) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000.