On 5 May 2014, the Ministry of Home Affairs (the "MHA"), Ministry of Finance (the "MOF") and the Monetary Authority of Singapore (the "MAS") released a consultation paper seeking feedback on the proposed framework for a cash transaction reporting regime for precious stones and metals dealers (the "PSMDs"). The consultation closed on 23 May 2014.
Cash transaction reporting regime
Taking into account the money laundering and terrorist financing risks posed by dealings in precious stones and metals that are paid in cash, the consultation paper proposes to impose the following new obligations on a PSMD:
- To establish the identity of a customer (and the beneficial owners of the precious stones and metals, when they are known to be different from the customer) and record the information about the customer's identity before carrying out any cash transaction between S$20,000 to S$30,000 (or its equivalent in a foreign currency) or more for the sale of precious stones or metals;
- To file a cash transaction report (the "CTR") and submit it to the Suspicious Transaction Reporting Office of the Commercial Affairs Department; and
- To keep the supporting documentation and records for the CTR for a period of five years from the date of filing.
The obligations will be set out in the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act.
Who is a PSMD
A PSMD is a person who manufactures, imports for sale, lets for hire, sells or offers or possesses for sale any precious stones or precious metals as a business.
What is a precious stone/precious metal
Precious stones include diamonds, sapphires, rubies, emeralds and jade (nephrite and jadeite) and precious metals include gold, silver, platinum, iridium, osmium, palladium, rhodium, ruthenium and alloy with at least 2% of precious metal in weight.
Any finished good that derives 50% or more of its value from precious metals or precious stones contained in or attached to such finished goods is considered as a precious stone or precious metal. This includes an item such as a watch, antique and other collectable of value.
The following materials relating to the above development are available from the REACH portal www.reach.gov.sg: