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Proposal to regulate dealers of precious stones, metals

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To close the gap on the use of precious stones and metals for money laundering and terrorism financing, the Government is proposing a new law that is "crucial to combating crime and improving security, both domestically and globally".

In a statement yesterday, the Ministry of Law (MinLaw) said the portability of precious stones and metals, and the ease of converting their value into cash, put them at an inherent risk for money laundering and terrorism financing.

MinLaw said there is already robust supervision of the financial sector for these risks, and designated non-financial sectors - such as pawnbrokers - are also subject to a range of anti-money laundering and countering the financing of terrorism measures.

These cover, among other things, prevention, supervision, enforcement and confiscation of proceeds.

But dealers in precious stones and metals in Singapore are not subject to these measures, other than the Cash Transaction Reporting regime introduced in 2014.

To close the gap, mitigate money laundering and terrorism financing risks, as well as increase trust in such dealers, MinLaw is proposing a new regulatory regime.

The proposed law requires dealers in precious stones and metals to be registered with MinLaw. Other requirements include filing suspicious transaction reports, cash transaction reports and performing customer due diligence for cash transactions over $20,000.

The dealers are required to keep records and conduct internal audits of money laundering and terrorism financing risks. MinLaw is inviting public feedback on the proposed regime, which will run till Oct 12.

Mr Suresh Hathiramani, director of diamond wholesaler Facets Singapore, welcomed the move.

He told The Straits Times: "This open dialogue will help us learn what level of monitoring is required from us. It will formalise the safeguards." - THE STRAITS TIMES

BUSINESS & FINANCE