Guidance Paper on Strengthening AML/CFT Controls in the PSPM Sector issued on 16 June 2021

16 JUN 2021

The Guidance Paper on Strengthening AML/CFT Controls in the Precious Stones and Precious Metals (PSPM) Sector (“Guidance Paper”) was issued on 16 June 2021.

MinLaw conducted a series of inspections and compliance reviews of regulated dealers from June 2020 to March 2021 targeted at assessing their level of compliance with the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019 (“PSPM Act”) and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Regulations 2020 (“PMLTF Regulations”).

The Guidance Paper summarises the key findings and elaborates on the sound practices observed and MinLaw’s supervisory expectations of effective Anti-Money Laundering/Countering the Financing of Terrorism (“AML/CFT”) controls in the precious stones and precious metals dealer (“PSMD”) Sector.

In the Guidance Paper, MinLaw has identified four key areas for improvement, namely:

  1. Money Laundering/Terrorism Financing (“ML/TF”) Risk Awareness and Understanding of AML/CFT Requirements;

  2. Risk Assessment and Internal Policies, Procedures and Controls (“IPPC”);

  3. Customer Due Diligence (“CDD”) and Cash Transaction Reporting (“CTR”); and

  4. Enhanced Customer Due Diligence (“ECDD”).

Each key area for improvement comprises the following elements:

  1. Regulatory obligations – To remind dealers of the regulatory requirements;

  2. Case examples of good practices observed – To share and acknowledge good practices;

  3. Case examples of lapses observed – To highlight key findings and the causes which led to the findings; and

  4. Key learning points – To highlight MinLaw’s supervisory expectations.

MinLaw will be conducting online briefings on 7 July 2021 and 12 July 2021 to take regulated dealers through the Guidance Paper. The briefings will only be available in English. Each dealer may only send 1 representative to attend. Please click on the link to sign up.

FOR REGULATED DEALERS TO TAKE ACTION:

  • Regulated dealers should study the Guidance Paper to better understand the regulatory obligations and how to comply with them.

  • Regulated dealers should evaluate the effectiveness of their AML/CFT measures against the findings and good practices highlighted in this Guidance Paper and take appropriate steps to address any gaps.

  • Regulated dealers may wish to attend MinLaw’s briefings on 7 July and 12 July 2021. Interested dealers may sign up for the briefings here.

[Update in July 2021: We would like to thank all participants for their support of this event in July 2021. The presentation slides and video recording of the briefing will be shared with registered dealers and available on our website soon. Please stay tuned!]