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Registration to be a Regulated Dealer in Precious Stones, Precious Metals and/or Precious Products

Updated: Aug 24, 2023

Dealer in Precious Stones, Precious Metals and/or Precious Products


A dealer in precious stones, precious metals and/or precious products is a person or entity that buys, sells, trades, or otherwise deals in precious stones, precious metals, and/or precious products. Precious stones include diamonds, rubies, sapphires, emeralds, and pearls. Precious metals include gold, silver, platinum, palladium, and rhodium. Precious products are any finished product that derives 50% or more of its value from any precious stone or precious metal.


Dealers in precious stones, precious metals and/or precious products are required to comply with a number of regulations, including:

  • The Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019 (PSPM Act).

  • The Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Regulations 2020 (PMLTF Regulations).

  • The Code of Conduct for Regulated Dealers in Precious Stones, Precious Metals and/or Precious Products.

These regulations are designed to prevent money laundering and terrorism financing. Dealers in precious stones, precious metals and/or precious products must take steps to:

  • Identify and verify their customers.

  • Report suspicious transactions to the authorities.

  • Implement and maintain adequate internal controls.

The penalties for non-compliance with these regulations can be severe. Dealers in precious stones, precious metals and/or precious products should seek professional advice to ensure that they are compliant with the relevant laws and regulations.


Here are some of the red flags that may indicate money laundering or terrorism financing:

  • Transactions that are not consistent with the customer's known profile.

  • Large cash transactions.

  • Transactions that are structured to avoid reporting requirements.

  • Transactions that are made with shell companies or other suspicious entities.

If you suspect that a customer is engaging in money laundering or terrorism financing, you should report it to the authorities immediately.


Registration to be a Regulated Dealer in Precious Stones, Precious Metals and/or Precious Products


To register as a regulated dealer in precious stones, precious metals and/or precious products in Singapore, you will need to meet the following requirements:

  • You must be a natural person or a corporate entity incorporated in Singapore.

  • You must have a place of business in Singapore.

  • You must have a valid business registration certificate with the Accounting and Corporate Regulatory Authority (ACRA).

  • You must have a valid trade licence from the Singapore Police Force (SPF).

  • You must pay the application fee of \$120.

  • You must submit the following documents to the Registrar of Regulated Dealers:

    • A completed application form.

    • A copy of your ACRA business registration certificate.

    • A copy of your SPF trade licence.

    • A copy of your identity card or passport.

    • A declaration that you have read and understood the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Act 2019 (PSPM Act) and the Precious Stones and Precious Metals (Prevention of Money Laundering and Terrorism Financing) Regulations 2020 (PMLTF Regulations).


Once your application is approved, you will be issued a certificate of registration. You will be required to renew your registration every year.


The registration fee for regulated dealers is $250 per outlet per year for outlets where the net price of every precious stone, precious metal, precious product or asset-backed token that is or is to be sold by the registered dealer is less than $2,000 apiece. The registration fee is $350 per outlet per year for outlets where the net price of every precious stone, precious metal, precious product or asset-backed token that is or is to be sold by the registered dealer is more than $2,000 apiece.


For more information on the registration process, please visit the website of the Ministry of Law (MinLaw).


Here are the links to the relevant websites:

  • Registrar of Regulated Dealers: https://acd.mlaw.gov.sg/

  • Ministry of Law: https://www.mlaw.gov.sg/



Who is Required to Register?


You are required to register with the Registrar of Regulated Dealers if you are a regulated dealer i.e. you carry on a business of regulated dealing in precious stones, precious metals and/or precious products (“PSPM”), or as an intermediary for regulated dealing in PSPMs. Examples of regulated dealers who are required to register include, but are not limited to jewellers, bullion traders, jewellery wholesalers, jewellery retailers, secondhand goods dealers, auction houses, and trading platforms.


Registration Application Information Needed


Director
Partner
Manager
Company secretary
Substantial shareholder (if you represent a company)

Information Needed:

  • Name

  • NRIC/ Passport/ FIN No.

  • Citizenship or Country/ Region of Incorporation

  • Date of birth

  • Declaration of

  1. Any investigations or convictions for offences related to fraud, dishonesty, money laundering or terrorism financing;

  2. Any bankruptcy, insolvency or liquidation;

  3. Any lawsuit the person was a party to; and

  4. Any breach of AML/CFT requirements


Outlet Manager

Information Needed:

  • Name

  • NRIC/ Passport/ FIN No.

  • Citizenship or Country/ Region of Incorporation

  • Date of birth

  • Declaration of

  1. Any investigations or convictions for offences related to fraud, dishonesty, money laundering or terrorism financing;

  2. Any bankruptcy, insolvency or liquidation;

  3. Any lawsuit the person was a party to; and

  4. Any breach of AML/CFT requirements


Compliance Officer

Information Needed:

  • Name

  • NRIC/ Passport/ FIN No.

  • Citizenship or Country/ Region of Incorporation

  • Date of birth

  • Email address

  • Mobile number


Business Address

Information Needed:

  • Registered address

  • Operating address

  • Mailing address

  • Outlet address

  • Business telephone number

  • Business fax number

  • Business email address


Products

Information Needed:

  • Type of precious stones, precious metals and precious products


Activities

Information Needed:

  • Wholesale, manufacturing, retail, etc.


Supporting Documents to be Attached to the Application Form


For applicants who have directors, partners, managers, company secretary, outlet managers, substantial shareholders who are foreign nationals, you should attach a copy of their foreign photo identification document such as passport.

For applicants who have corporate shareholders, you should attach a copy of your shareholders’ registration information (including particulars of directors, partners, managers, company secretary, outlet managers, substantial shareholders).

For applicants who have more than one layer of corporate shareholders, you should attach your organisation structure/ chart up till the individuals who own the group. For listed corporate shareholders, you do not have to provide the name of all your shareholders. You should still provide a list of those who hold more than 5% shares of the listed company.


Application Processes


It may take around 4 weeks for the Registrar to process an application for registration before granting the registration. It may take longer if additional information is required.


After the Registrar receives your payment of the registration fees, the Registrar will send you an approval email notification with the Certificate of Registration.


Fees and Registering your Place(s) of Business


  • Application Fee


Regulated dealers must pay an application fee of S$120 to register with the Registrar.


Registration is on an annual basis. If the Registrar provides in-principle approval for your application, you must pay a registration fee based on the registration tier and the number of outlets operated:


  • Registration Fees

Depending on your selected class of registration, you must pay a registration fee of S$250 or S$350 per place of business within 30 days after receiving in-principle approval from the Registrar.


Class A

The registration is subject to a condition that the net price of every precious stone, precious metal, precious product or asset-backed token that is or is to be sold by the registered dealer be less than S$2,000 a piece - S$250 per outlet annually


Class B

The registered dealer is allowed to sell precious stones, precious metals, precious products or asset-backed tokens of any value - S$350 per outlet annually


The registration is to be renewed annually.






How Bestar can Help


Bestar can help you with the registration to be a regulated dealer in precious stones, precious metals and/or precious products in Singapore in the following ways:

  • Provide guidance on the regulatory requirements: Bestar can help you understand the PSPM Act and PMLTF Regulations, and the Code of Conduct for Regulated Dealers in Precious Stones, Precious Metals and/or Precious Products.

  • Assist with the application process: Bestar can help you complete the application form and gather the required documents.

  • Provide training on AML/CFT: Bestar can provide training on anti-money laundering (AML) and counter-terrorist financing (CFT) to your staff.

  • Advise on compliance matters: Bestar can advise you on compliance matters, such as how to identify and verify customers, how to report suspicious transactions, and how to implement and maintain adequate internal controls.

Bestar is a leading provider of AML/CFT compliance services in Singapore. We have a team of experienced professionals who can help you with all aspects of the registration process and compliance with the relevant laws and regulations.


Here are the steps on how Bestar can help you with the registration process:

  1. Contact Bestar: You can contact Bestar by phone, email, or through our website.

  2. Schedule a consultation: Once you have contacted Bestar, we will schedule a consultation with you to discuss your specific needs.

  3. Gather your documents: We will need you to gather certain documents in order to process your application. These documents will include your business registration certificate, trade licence, identity card or passport, and a declaration that you have read and understood the PSPM Act and PMLTF Regulations.

  4. Complete the application form: We will provide you with an application form that you will need to complete.

  5. Submit your application: Once you have completed the application form, you will need to submit it to the Registrar of Regulated Dealers.

  6. Await approval: The Registrar of Regulated Dealers will review your application and will notify you of their decision within a reasonable time.

  7. Receive your certificate of registration: If your application is approved, you will receive a certificate of registration from the Registrar of Regulated Dealers.

Bestar can also help you with the renewal of your registration. The renewal process is similar to the registration process, but there are some additional requirements. For example, you will need to provide the Registrar of Regulated Dealers with a copy of your financial statements for the previous year.


If you are considering registering as a regulated dealer in precious stones, precious metals and/or precious products in Singapore, Bestar can help you with the entire process. We have the experience and expertise to ensure that your application is processed smoothly and that you are compliant with all relevant laws and regulations.


Need help with registration? For assistance, please contact us.

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