Strengthening Compliance: Key Insights from Singapore’s 2021–2024 PSMD Enforcement Report
The Anti-Money Laundering/Countering the Financing of Terrorism Division (ACD) of Singapore’s Ministry of Law has released its Enforcement Report for 2021–2024, detailing regulatory efforts to combat financial crimes in the Precious Stones and Precious Metals Dealers (PSMD) sector. The report highlights enforcement outcomes, common violations, and emerging risks in an industry vulnerable to money laundering (ML), terrorism financing (TF), and proliferation financing (PF).
Key Findings
1. Enforcement Actions Escalate
o 222 enforcement operations targeted registered and unregistered PSMDs, with 777 inspections conducted.
o S$639,250 in composition penalties were issued, with top offences including unregistered dealings (e.g., online sales without licenses) and failure to file Cash Transaction Reports (CTRs).
o 7 registrations were cancelled for severe breaches, such as fraud or unfit personnel.
2. Compliance Gaps Persist
o 68% of offences involved failures in implementing Internal Policies, Procedures, and Controls (IPPC) and Risk Assessments (RA).
o Other lapses included inadequate Customer Due Diligence (CDD) (6%) and false information provision (e.g., during registration renewals).
3. Digital Risks Rise
o The report flags online platforms as a growing channel for unregistered PSMDs, prompting ACD to adopt AI and data analytics for detection.
4. Global Collaboration
o ACD reinforced ties with the Financial Action Task Force (FATF) and foreign regulators to align with international AML/CFT standards.
Looking Ahead
The report outlines a risk-based approach for future enforcement, leveraging technology to streamline oversight while maintaining FATF compliance. It also emphasizes reducing regulatory burdens without compromising scrutiny.
Why It Matters
Singapore’s PSMD sector, a hub for high-value transactions, remains a target for illicit finance. The report underscores ACD’s commitment to deterrence, transparency, and sectoral trust—critical for Singapore’s reputation as a financial hub.
Read the full report here.
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