Media Coverage
PSMD fined S$35,000 for failing to perform customer due diligence measures
2 January 2025
A precious stones and metals dealer was fined S$35,000 for failing to conduct customer due diligence measures on transactions despite having reasons to suspect ML/TF/PF.
A precious stones and precious metals dealer (“PSMD”) was fined S$35,000 on 19 November 2024 under the Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act (“PSPM Act”). The PSMD had sold valuables worth more than S$313,000 in total to customers, and over S$140,000 of that amount was later traced to two Singaporean victims of a malware scam.
Two employees of the PSMD had processed the payments without conducting the necessary checks, despite having reasons to suspect that the funds were linked to money laundering activities. The offences came to light after the two malware scam victims alerted the police.
We remind regulated dealers that under the PSPM Act, all regulated dealers are required by law to:-
Perform Customer Due Diligence or Enhanced Customer Due Diligence measures under circumstances that are prescribed by the Act;
Submit Cash Transaction Report with the Suspicious Transaction Reporting Office (“STRO”) for cash and cash equivalent transactions exceeding S$20,000; and
File Suspicious Transaction Report with STRO where there is suspicion of money laundering/terrorism financing/proliferation financing.
Full details on the article are available in English and Chinese.