What I should know

What is money laundering, terrorism financing and proliferation financing?

Money laundering (“ML”) is the process of concealing the proceeds of a crime so that they appear to have originated from legitimate sources. Terrorism financing (“TF”) is the funding of terrorism or terrorist groups, either via legitimate or illegitimate means. Proliferation financing (“PF”) refers to the risk of raising, moving or making available funds, other assets or other economic resources, or financing, in whole or in part, for the manufacture, acquisition, possession, development, export, trans-shipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical or biological weapons (i.e., weapons of mass destruction) and their means of delivery and related materials (including both technologies and dual use goods used for non-legitimate purposes), in contravention of national laws or, where applicable, international obligations.

Who are registered dealers?

Registered dealers are regulated by the Ministry of Law under the Precious Stones and Precious Metals (Prevention of Money Laundering, Terrorism Financing and Proliferation Financing) Act 2019 (“PSPM Act”) for the prevention of ML, TF and PF only. The Ministry of Law does not audit, supervise or certify the registered dealer for any other purpose.

Hence, registered dealers are not allowed to represent or suggest that their businesses have been approved or endorsed by the Ministry of Law in any way. They are to also ensure that their websites, representations and publicity materials do not cause the public to misconstrue that the Registrar of Regulated Dealers is regulating them beyond anti-money laundering, countering the financing of terrorism and countering proliferation financing (“AML/CFT/CPF”) matters. Customers should exercise due caution and the Ministry of Law makes no warranty or representation as to any aspect of the business of the registered dealer.

Investments are not covered under the regulations.

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