Issuance of Code of Practice on AML Measures for PSMDs to Combat Scam Related Money Laundering Cases

Dear Regulated Dealer,

Pursuant to section 35(1) of the Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019 (“PSPM Act”), the Registrar of Regulated Dealers (the “Registrar”) hereby issues the Code of Practice: Anti Money Laundering Measures for Precious Stones and Precious Metals Dealers to Combat Scam-related Money Laundering Cases (the “CoP”). Click here to access the CoP.

The CoP has been developed in response to the evolving scam landscape in Singapore, where Precious Stones and Precious Metals Dealers (“PSMDs”) have increasingly been exploited by scammers as part of scam typologies involving the purchase and subsequent handover of high value physical assets, such as gold bullion, jewellery and luxury watches. In many cases, scam victims are instructed by scammers impersonating government officials to perform such purchases before transferring the items to scammers, often under time pressure and with limited opportunity for intervention.

Against this backdrop, the Ministry of Law (“MinLaw”) has worked closely with the Singapore Police Force through Whole-of-Government anti-scam platforms and identified PSMDs as a critical intervention point to disrupt scams. The CoP has been developed to provide PSMDs with clear and practical guidance on measures that should be adopted to mitigate scam-related risks and strengthen early intervention.

The CoP complements existing AML/CFT/CPF obligations under the PSPM Act and its subsidiary legislation and sets out guidance on:

a) Common scam typologies and red flags relevant to PSMD transactions;

b) Frontline response measures where potential scam indicators are identified; and

c) Recording-keeping practices.

The CoP adopts a structured A.C.T. framework, which requires PSMDs to:

a) Add immediate intervention by asking the customer for reasons behind the purchase;

b) Check for the customer’s behaviour using the various anti-scam information; and

c) Tell the customer that he/she should call the ScamShield Helpline at 1799 or 999 if he/she is under instructions to make the purchases.

The A.C.T. framework is intended to be applied in situations where transactions or customer behaviour present heightened scam risk, and PSMDs may implement additional internal anti-scam measures beyond those specified in this CoP.

Your continued vigilance and cooperation are invaluable in preventing scams and protecting vulnerable members of our community.

Anti‑Money Laundering/Countering the Financing of Terrorism Division
Ministry of Law