Financial Crime World

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Singapore’s CFT Regulatory Requirements for Precious Stones and Metals Dealers

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Singapore has implemented a set of regulations aimed at preventing money laundering, terrorism financing, and proliferation financing (ML/TF/PF) within its precious stones and metals dealing sector. These regulations are enforced by the Monetary Authority of Singapore (MAS) under the Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019 (PSPM Act).

Who is a Regulated Dealer?

A regulated dealer is any individual or entity that carries on a business of selling, purchasing, importing, possessing for sale, or manufacturing precious stones, metals, or products. This includes:

  • Jewellers
  • Bullion traders
  • Jewellery wholesalers
  • Second-hand goods dealers

What are the Regulatory Requirements?

Regulated dealers must:

  • Conduct customer due diligence (CDD)
  • Keep records
  • File Cash Transaction Reports (CTR) and Suspicious Transaction Reports (STR) with the authorities
  • Comply with anti-money laundering (AML) and counter-terrorism financing (CFT) measures set out in the PSPM Act

Exemptions

Certain individuals or entities are exempt from registration under the PSPM Act, including:

  • Pawnbrokers
  • Licensed financial institutions
  • Foreign dealers that operate in Singapore for less than 90 days a year
    • Foreign dealers must notify the Ministry of Manpower before starting their activities in Singapore

Regulatory Compliance Requirements for Foreign Dealers

Foreign dealers carrying on business in Singapore are subject to all transaction-based requirements under the PSPM Act, including:

  • CDD
  • Record-keeping
  • Reporting obligations

They do not need to register with the authorities but must notify them of their intention to operate in Singapore.

Singapore’s Role in AML/CFT/CPF

Singapore is a member of the Financial Action Task Force (FATF), an inter-governmental body that sets international standards for preventing ML/TF/PF. The country has implemented anti-money laundering, counter-terrorism financing, and counter-proliferation financing measures to ensure its financial system is not used to facilitate illegal activities.

Guidelines for Regulated Dealers

The MAS has published guidelines for regulated dealers on how to implement an effective AML/CFT/CPF framework for their businesses. Regulated dealers must comply with these guidelines to avoid criminal penalties, including fines and imprisonment.