Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Bill

securities or derivatives contracts within the meanings of the Securities and Futures Act (Cap. 289); and

commodity contracts within the meaning of the Commodity Trading Act (Cap. 48A);

Part 2, 3 or 5;

sections 43 to 48 of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (Cap. 65A);

the Terrorism (Suppression of Financing) Act (Cap. 325);

any regulations made under the United Nations Act (Cap. 339);

any provision of any other written law relating to the prevention of money laundering or terrorism financing; or

the law of any foreign country or territory relating to the prevention of money laundering or terrorism financing;

made up of, containing or having attached to it, any precious stone or precious metal or both; and

at least 50% of its value (or other percentage of value prescribed in substitution) is attributable to the precious stone or precious metal or both, but excludes any product or class of products of a type prescribed;

a business of regulated dealing; or

business as an intermediary for regulated dealing,but excludes a pawnbroker and such other person as may be prescribed;

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;

selling or redeeming asset‑backed tokens;

purchasing any precious stone, precious metal or precious product for the purposes of resale;

a Registrar of Regulated Dealers; and

one or more Deputy Registrars of Regulated Dealers and Assistant Registrars of Regulated Dealers.

a public officer;

an auxiliary police officer appointed under the Police Force Act (Cap. 235);

a public accountant registered or deemed to be registered under the Accountants Act (Cap. 2);

any individual suitably qualified and trained to be an authorised officer.

made to the Registrar in the form and manner specified by the Registrar;

accompanied by the documents and information required by the Registrar; and

accompanied by the application fee prescribed (if any).

grant the registration or renewal, with such conditions and for such period as may be prescribed; or (b)refuse the registration or renewal.

the prescribed fee for the registration or renewal is not paid;

the application for the registration or renewal —

contains materially false or misleading information; or

is materially incomplete;

the applicant for the registration or renewal is, in the opinion of the Registrar, not a fit and proper person;

the applicant has an individual in any of the following positions of the applicant who, in the opinion of the Registrar, is not a fit and proper person:

where the applicant is a company, a substantial shareholder;

a director, manager, partner, secretary or other person holding an analogous position involved in the management of the applicant;

an employee managing the applicant’s business of regulated dealing or the applicant’s business as an intermediary, as the case may be;

it is not in the public interest to grant or renew the registration.

whether the person has been convicted, whether before, on or after the date of commencement of this Act —

of an offence involving fraud or dishonesty punishable with imprisonment for a term of 3 months or more, whether in Singapore or elsewhere; or

of a money laundering or terrorism financing offence;

whether the person is an undischarged bankrupt;

the person’s record of compliance with requirements for the prevention of money laundering and terrorism financing to which the person is subject under this Act or any other written law, or the law of any foreign country or territory.

the registered dealer has failed to comply with any condition of registration to which the registered dealer is subject;

the registration was obtained by fraud or misrepresentation;

there existed at the time the registration was granted or renewed a circumstance that, if known to the Registrar at the time, would have required or permitted the Registrar to refuse to grant or renew the registration;

the registered dealer is neither carrying on the business of regulated dealing nor business as an intermediary in Singapore;

the registered dealer or any of the persons mentioned in section 8(1)(d) is no longer a fit and proper person within the meaning of this Part;

it is not in the public interest for the registered dealer to continue to carry on the business of regulated dealing or business as an intermediary in Singapore.

contravenes a provision of this Act, which contravention is not an offence; or

fails to comply with a condition of registration to which the registered dealer is subject.

stating that the Registrar intends to take regulatory action under section 10; (b)specifying the type of regulatory action the Registrar proposes to take and the ground or grounds for the regulatory action; and

specifying the time (being not less than 14 days after the date the written notice is served on the registered dealer) within which representations may be made to the Registrar with respect to the proposed regulatory action.

after considering any written representation made to the Registrar pursuant to the written notice mentioned in subsection (1); or

after the time delimited in the written notice in subsection (1)(c) lapses, if no representation is made.

the enforcement by any person of any right or claim against the registered dealer or former registered dealer; or

the enforcement by the registered dealer or former registered dealer of any right or claim against any person.

the Registrar’s refusal to grant or renew registration;

the imposition or addition, variation or cancellation of any condition of registration;

any regulatory action under section 10.

the Second Minister, if any, for his or her Ministry;

any Minister of State, including a Senior Minister of State, for his or her Ministry;

any Parliamentary Secretary, including a Senior Parliamentary Secretary, to his or her Ministry.

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;

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;

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;

a transaction prescribed as a designated transaction;

before entering into a designated transaction;

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

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.

the regulated dealer has reason to suspect that the designated transaction relates to money laundering or terrorism financing; and

the regulated dealer has reason to believe that performing the measure will tip off the customer or any other person.

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 39 of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act or section 8 or 10 of the Terrorism (Suppression of Financing) Act; (d)record the basis of the regulated dealer’s determination under paragraph (c); and

carry out such other measures as may be prescribed.

a record of every designated transaction (whether or not completed) and every other transaction for which the customer due diligence measures mentioned in section 16 must be performed, containing the prescribed information on that transaction;

a record of all information relating to a customer which is obtained through the customer due diligence measures performed under section 16;

a copy of each supporting document relied on in support of any information referred to in paragraph (b);

such other document and information as may be prescribed.

comply with such requirements as may be prescribed; and (b)be appropriate, having regard to the risk of money laundering and terrorism financing and the size of the regulated dealer’s business.

any prescribed measures relating to targeted financial sanctions against terrorism; and

any additional prescribed measures which are necessary or expedient to give effect to any relevant FATF Recommendation.

section 8 or 10 of the Terrorism (Suppression of Financing) Act.

the regulated dealer has carried on or is carrying on business in a manner that carries a risk of money laundering or terrorism financing; (b)a money laundering or terrorism financing offence is being committed; or

it is necessary or expedient for the prevention of money laundering or terrorism financing for the written direction to be given.

to stop or terminate its regulated dealing, or a particular transaction, with a particular customer;

to stop a particular employee or individual from conducting any part of the regulated dealer’s business as a regulated dealer;

to do or refrain from doing anything specified in the written direction to mitigate the risk mentioned in subsection (1)(a) or to stop the commission of the offence mentioned in subsection (1)(b);

at the regulated dealer’s own cost, to appoint an auditor to carry out an audit of the regulated dealer’s compliance with the measures for the prevention of money laundering and terrorism financing under this Act, including an audit of such matters as the Registrar may specifically require for that purpose;

to take specified measures to comply with this Act or to remedy any contravention of or non‑compliance with this Act to which the direction relates.

ascertaining whether the provisions of Part 3 are being complied with;

ascertaining whether any condition of registration or a written direction under section 22 is being complied with;

investigating any offence under this Act.

enter and inspect any place that the Registrar believes on reasonable grounds is used for the business of regulated dealing or business as an intermediary for regulated dealing, even if also used as a residence;

photograph or film, or make any record or sketch of, any part of the premises, or any thing at the place;

require any person at that place to produce or grant access to, without charge, any document or material reasonably required for any purpose in subsection (1), which is in the possession or under the control of that person;

require any person, whom the Registrar reasonably believes has any information or any document or material in the person’s possession, custody or control that is relevant for any of the purposes in subsection (1), to provide that information, or produce or grant access to that document or material;

inspect and make copies of or take extracts from any such document or material provided under paragraph (c) or (d); and

take possession of such document or material if, in the opinion of the Registrar —

the inspection or copying of or extraction from the document or material cannot reasonably be performed without taking possession; (ii)the document or material may be interfered with or destroyed unless possession is taken; or

the document or material may be required as evidence for any regulatory action, or in any proceedings under this Act.

to take reasonable steps to require the person to produce the document or provide the information immediately or at a place and time specified in writing;

to require the person to provide an explanation of the document or information;

if the document or information is not produced or provided, to require the person to state, to the best of the person’s knowledge and belief, where the document or information is; (d)if the document or information is recorded otherwise than in legible form, to require the document or information to be made available in a legible form; and

if the document or information is recorded in electronic form, to require the person to —

provide assistance in gaining access to any computer or other equipment in which the document or information is stored; and

provide the document or information, or a copy of the document or information, in a form or format specified by the Registrar.

must be placed in safe custody by the Registrar; and

unless ordered otherwise by the court, may be retained until the completion of the investigation or any proceedings (including proceedings on appeal) in which it may be in evidence.

issue a written notice requiring any person within the limits of Singapore, who appears to be acquainted with the facts or circumstances of the matter, to attend before the Registrar;

examine orally any person who appears to be acquainted with the facts or circumstances of the matter —

whether before or after that person or anyone else is charged with an offence in connection with the matter; and

whether or not that person is to be called as a witness in any inquiry, trial or other proceeding in connection with the matter;

without a warrant enter and search any place or premises in which the Registrar reasonably suspects that an offence under this Act has been or is being committed; (d)if free entry or access to the place or premises cannot be obtained under paragraph (c), the Registrar may, with such assistance as the Registrar considers necessary, break open any door, window, lock or fastener, or use any other reasonable means in order to gain entry or access into the place or premises.

be reduced to writing;

be read over to the person;

if the person does not understand English, be interpreted in a language that the person understands; and

after correction (if necessary), be signed by the person.

in respect of which a contravention of this Act is suspected to have been committed;

that is suspected to have been used or intended to be used in a contravention of this Act; or

that is suspected to constitute evidence of a contravention of this Act.

prohibit any person from dealing with such property; and

require any person to affix the order or a copy of the order on or near such property.

the information or document is relevant to enable the corresponding authority to carry out any supervision, investigation or enforcement under any law in that country or territory relating to the prevention of money laundering or terrorism financing;

there exists an arrangement under which the corresponding authority has agreed, or has given an undertaking, to communicate to Singapore, upon Singapore’s request, information received by the corresponding authority that corresponds to any thing required to be disclosed or reported to the Registrar under this Act; (c)the corresponding authority has given appropriate undertakings —

for protecting the confidentiality of any thing communicated to it; and

for controlling the use that will be made of any information or document disclosed to it (including an undertaking to obtain the prior consent of the Registrar before using or disclosing the information or document for a purpose other than the purpose for which the information or document was requested); and

such other conditions as may be prescribed are fulfilled.

an officer, employee or agent of the corporation engaged in that conduct within the scope of his or her actual or apparent authority; and

the officer, employee or agent had that state of mind,is evidence that the corporation had that state of mind.

who is —

an officer of the corporation; or

an individual involved in the management of the corporation and in a position to influence the conduct of the corporation in relation to the commission of the offence; and

who —

consented or connived, or conspired with others, to effect the commission of the offence;

is in any other way, whether by act or omission, knowingly concerned in, or is party to, the commission of the offence by the corporation; or

knew or ought reasonably to have known that the offence by the corporation (or an offence of the same type) would be or is being committed, and failed to take all reasonable steps to prevent or stop the commission of that offence,shall be guilty of that same offence as is the corporation, and shall be liable on conviction to be punished accordingly.

Chapters V and VA of the Penal Code; or

the Evidence Act (Cap. 97) or any other law or practice regarding the admissibility of evidence.

any person purporting to act in any such capacity; and

for a corporation whose affairs are managed by its members, any of those members as if the member were a director of the corporation;

the knowledge, intention, opinion, belief or purpose of the person; and

the person’s reasons for the intention, opinion, belief or purpose.

an officer, partner, employee or agent of the unincorporated association or the partnership engaged in that conduct within the scope of his or her actual or apparent authority; and

the officer, partner, employee or agent had that state of mind,is evidence that the unincorporated association or partnership had that state of mind.

who is —

an officer of the unincorporated association or a member of its governing body;

a partner in the partnership; or

an individual involved in the management of the unincorporated association or the partnership and in a position to influence the conduct of that unincorporated association or partnership in relation to the commission of the offence; and

who —

consented or connived, or conspired with others, to effect the commission of the offence;

is in any other way, whether by act or omission, knowingly concerned in, or is party to, the commission of the offence by the unincorporated association or the partnership; or

knew or ought reasonably to have known that the offence by the unincorporated association or the partnership (or an offence of the same type) would be or is being committed, and failed to take all reasonable steps to prevent or stop the commission of that offence,shall be guilty of the same offence as is that unincorporated association or partnership, and shall be liable on conviction to be punished accordingly.

Chapters V and VA of the Penal Code; or

the Evidence Act or any other law or practice regarding the admissibility of evidence.

any person holding a position analogous to that of president, secretary or member of a committee of the unincorporated association; and

any person purporting to act in any such capacity;

the knowledge, intention, opinion, belief or purpose of the person; and

the person’s reasons for the intention, opinion, belief or purpose.

to provide guidance to regulated dealers in relation to the operation or administration of any provision of this Act;

to set out best practices for regulated dealers with respect to measures for the prevention of money laundering and terrorism financing, and for giving effect to the relevant FATF Recommendations.

publish a notice of the issue, approval, amendment or revocation (as the case may be) in such manner as will secure adequate publicity for such issue, approval, amendment or revocation;

specify in the notice the date of the issue, approval, amendment or revocation (as the case may be); and

ensure that, so long as the code of practice, guideline or standard of performance remains in force, copies of that code, guideline or standard, and of all amendments to it, are available free of charge to any regulated dealer to whom that code, guideline or standard applies.

the registration of regulated dealers;

the duties of registered dealers;

measures for the prevention of money laundering and terrorism financing by regulated dealers, including —

the customer due diligence measures which must be conducted by a regulated dealer; (ii)any additional reporting obligations by a regulated dealer; (iii)the specific risks that must be identified and assessed, and specific internal policies, procedures, controls, programmes, measures or standards that must be implemented, in order for a regulated dealer’s programmes and measures to be considered adequate for the purposes of section 19(1); and

any additional measures relating to targeted financial sanctions against terrorism or to give effect to any relevant FATF Recommendation which a regulated dealer must take;

the records that must be kept by a regulated dealer and the period for which, and manner in which, the records must be kept;

the fees to be paid in respect of any application under this Act;

to prescribe anything required or permitted to be prescribed.

provide that any contravention of any provision of the regulations shall be an offence punishable with a fine not exceeding $100,000 or with imprisonment for a term not exceeding 3 years or with both; and

provide for such saving, transitional or other consequential provision as is necessary or expedient.

by deleting the word “and” at the end of paragraph (a)(iv); and

by deleting the word “and” at the end of sub‑paragraph (v) of paragraph (a), and by inserting immediately thereafter the following sub‑paragraphs:“(vi)any cash transaction report submitted to a Suspicious Transaction Reporting Officer under section 17 of the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019; and

any cash transaction report submitted to a Suspicious Transaction Reporting Officer under section 74A of the Pawnbrokers Act 2015 (Act 2 of 2015); and”.

by deleting the word “or” at the end of subsection (1)(d);

by deleting the comma at the end of paragraph (e) of subsection (1) and substituting a semi‑colon, and by inserting immediately thereafter the following paragraphs:“(f)submitted to a Suspicious Transaction Reporting Officer under section 17 of the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019; or

submitted to a Suspicious Transaction Reporting Officer under section 74A of the Pawnbrokers Act 2015,”; and

by deleting the words “, pursuant to section 39(1), under section 48C(5), 48D, 48E(5) or 48J(1) or under any regulations made under section 200 of the Casino Control Act” in subsection (2)(a) and substituting the words “or under section 39(1) or any of the provisions mentioned in subsection (1)(b) to (g)”.

the person is registered as a registered dealer;

the person is exempted from section 6;

6 months after the date of commencement of section 6.